Labour pledged repeatedly during last year’s general election to cut British energy bills by £300 – but hopes that could happen any time soon were dashed again on Friday.

The energy regulator Ofgem announced that the average annual energy bill will rise by 0.2% in January, even though wholesale fuel costs are falling.

Ofgem puts a cap on the amount suppliers can charge for each unit of energy.

It is adjusted every three months to reflect changes in wholesale prices due to global factors.

This unexpected increase – though small – is yet another blow to the government, not least because Brits are already struggling with the cost of living.

Chancellor Rachel Reeves is also set to unveil her Budget next Wednesday, and is widely expected to unveil a series of tax rises – or spending

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