OFGEM’S lower price cap will amount to little for families struggling with the cost-of-living crisis, campaigners have warned after the regulator said household energy bills will drop by 7 per cent in July.

In response to wholesale prices, the regulator today announced it is dropping its price cap from the current £1,690 for a typical dual fuel household in England, Scotland and Wales to £1,568, a drop of £122 over a year.

This is about £500 less than the cap in July last year when it was £2,074, but still 50 per cent higher than the amounts families were paying three years ago.