HOUSEHOLDS across the Forest of Dean are being encouraged to consider grants of up to £9,000 to upgrade their heating as energy bills are set to rise this autumn.

Ofgem announced on Wednesday, August 26, that its price cap will increase by four per cent from October 1.

The typical bill for a household paying by direct debit for gas and electricity will rise by £60, from £1,663 to £1,723.

The increase will affect households on standard variable tariffs, although actual bills will continue to depend on how much energy is used.

The cap protects around 22 million households on default energy tariffs.

The announcement comes as Forest of Dean District Council is highlighting financial support available to residents considering switching to heat pumps.

Under the Government's Boiler Upgrade Scheme, eligible property owners can receive £7,500 towards an air-to-water or ground source heat pump.

Homes which are off the gas grid and heated by oil or LPG may qualify for an increased £9,000 grant until March 31, 2027.

The council said the additional support was particularly relevant in the Forest, where more households rely on oil and LPG heating than in many other areas.

It said heat pumps can be up to three times more energy efficient than traditional boilers and could help households reduce their carbon emissions.

The council is also directing residents to Warm and Well, which provides advice about grants, funding opportunities and ways of making homes warmer and more energy efficient.

Ofgem said the latest price cap increase was largely being driven by higher wholesale gas prices amid continuing volatility in global energy markets.

Gas bills under the cap are expected to rise by eight per cent, while households which do not use gas are expected to see an increase of less than one per cent.