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Energy bills are set to climb to a three-year high this autumn.

It is a 'warning shot' for Andy Burnham, given his pledge to bring down the cost of living as inflation jumped on Wednesday, fuelled by a rise in energy.

Official figures revealed soaring bills are already piling the pain on to consumers – with inflation climbing from 2.6 per cent in June to 2.9 per cent in July.

Following last month's 13 per cent rise in the energy price cap, experts predicted it will jump by a further 4 per cent from October.

It will put further pressure on the Prime Minister to water down Labour's Net Zero dogma at a time when critics say hard-pressed consumers and businesses can ill afford to pay for it.

The figures illustrate the challenge facing Mr Burnham, who has said he wants to tackle the cost of living and give households more 'breathing space'.

A new forecast from consultants Cornwall Insight predicted energy bills will rise in October as ongoing uncertainty over the Iran war pushes up global prices.

The increase would send typical bills to £1,941 a year, or £1,729 under new assumptions by regulator Ofgem about the amount of energy households are using.

Prime Minister Andy Burnham has said he wants to tackle the cost of living and give households more 'breathing space' - as energy bills are set to climb to a three-year high

Critics say hard-pressed consumers and businesses can ill afford to pay for Labour's Net Zero dogma. Pictured: The PM with former Energy Secretary Ed Miliband, now Foreign Secretary

It would represent the highest level of tariffs per unit of energy since July 2023. That is despite Mr Burnham's decision to remove VAT from fuel bills from October to ease pressure on households.

It comes as Labour continues to pursue a costly transition to renewable energy and a ban on new North Sea drilling.

Tory business spokesman Andrew Griffith said: 'Rising inflation, with predictions of higher energy prices yet to come, underlines the need for a more pragmatic approach to Net Zero to spare households even more of a squeeze on costs.'

Craig Lowrey, principal consultant at Cornwall Insight, said: 'With winter approaching, this latest hike will hit struggling households especially hard.

'While temporary relief like VAT cuts help soften the blow, they don't touch the underlying fact that Britain is heavily dependent on imports of natural gas.

'As long as we're exposed to global markets, the risk of these price shocks will remain.'

Scott Gardner, investment strategist at JP Morgan Personal Investing, said that while the latest rise in inflation has been expected, it marked 'a clear reversal from previous months when the headline rate was falling'.

He added: 'This rebound in UK inflation is a warning shot for what could come next.'

Energy Secretary Miatta Fahnbulleh has hinted that she could take a more flexible approach to Net Zero than predecessor Ed Miliband to keep bills affordable.

Mr Lowrey said: 'While greater energy independence should help protect consumers from these kinds of price rises in the future, the costs of delivering the transition are often felt hardest by those who can least afford it.

'The minister's true challenge will be achieving long-term energy security without overburdening vulnerable households today.'

David Whitehouse, chief executive of Offshore Energies UK, the trade body representing North Sea oil and gas producers, underlined the importance of the industry, which is expected to contribute £5billion in taxes this year.

That could potentially be used to take £200 each off the bills of 24 million homes on dual fuel tariffs, he said – as long as the beleaguered industry, which is being crushed by high taxes, is allowed to continue operating.

Chancellor John Healey said: 'Iran war inflation continues to impact prices here at home, but Britain's economy is resilient.'