An electricity meter showing the effects of increased costs on cash-strapped consumers.

Labour fails to deliver: energy bills still soaring for struggling households

Last Updated: August 27, 2025By

Share this post:

More than a year into government, promises of affordable energy remain empty as price caps rise again.

Households across the UK are facing yet another rise in energy bills, with the regulator Ofgem announcing a two per cent increase in the price cap from October – and the Labour government about as much use for the cash-strapped consumer as a dimmer switch in a blackout.

For the typical family, that means paying £1,755 a year—an increase of £35 over the current cap—despite Labour’s repeated pledges to make energy cheaper and achieve “energy independence” through domestic renewables.

Campaigners warn that families are entering another winter of high energy costs, on top of rising food and living expenses.

Millions are still struggling to repay the £4 billion of energy debt accumulated during previous periods of high prices.

Labour’s promises of “homegrown, clean power” and the creation of the publicly-owned Great British Energy company have been hollow.

Loading ad...

The UK energy market remains structured around profit-driven private firms and the marginal pricing system, which ties electricity costs to gas prices—even when cheaper renewable sources are providing the bulk of generation.

Even government interventions, such as expanding the Warm Home Discount to low-income households, are funded through higher standing charges. For most bill-payers, this means higher fixed costs, not meaningful relief.

Consumer groups highlight that only around a third of households are on fixed-price deals, leaving millions exposed to price fluctuations dictated by market forces.

Meanwhile, Labour ministers like Ed Miliband talk about long-term energy reform without addressing the core issue: the market still decides prices, not the government.

So, after more than a year in office, the Labour government has yet to make energy affordable for the millions of households struggling to keep the lights on.

While ministers speak of renewable energy and independence, for ordinary families, the situation is unchanged—bills are rising, support is patchy, and systemic reforms are nowhere in sight.

As winter approaches, households are left to ask a simple question:

When will political promises actually translate into lower energy costs, rather than more headlines?

Share this post:

Leave A Comment