An increase in the cost of domestic energy in England has taken effect, adding pressure to household budgets in the new year.

A higher price cap, set by regulator Ofgem, from now to April means gas and electricity costs will be 5% higher than the last three months.

The annual bill for a household using a typical amount of gas and electricity, has now risen from £1,834 to £1,928 (Ofgem).

Vulnerable households face particular pressure as prices have risen at the coldest and darkest time of year.

Many families are worried about the cost of food, have limited means to cook as energy costs are high, and are also concerned about heating bills.

“It is devastating because it strips away their ability to be a family in the home” (Winnie Baffoe of South London Mission).

The government said it recognised the challenges that many people were facing and was providing support including the £150 Warm Home Discount and up to £900 in Cost of Living Payments.

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