The 10 British towns and cities most affected by rising energy costs have been identified in a new analysis. The price of energy has surged following the war in Iran and the closure of the Strait of Hormuz, driving up fuel costs across the country.
How Rising Energy Costs Affect Households
War in Iran and the closure of the vital trade route the Strait of Hormuz have driven a sharp rise in fuel prices in recent months. The increased price of oil has affected the cost of petrol and diesel. However, for most households, domestic energy bills are more influenced by gas prices rather than oil. The exception is off-grid customers who rely on heating oil, for whom the government has already offered some support.
Gas prices have risen since the conflict began, but customers have so far been protected by the energy price cap. It is still uncertain how hard households will be hit by higher energy prices in the coming months. Ofgem is set to announce on 27 May what the price cap will be for the three months covering 1 July to 30 September 2026, and a significant increase in bills is expected.
A spokesperson for Energy UK told The Independent last week: “We have had elevated gas prices as well since the conflict started. Because of the way the price cap works, that hasn’t hit the majority of customers yet but there’s going to be a significant rise in July when the next one starts.”
Analysis by Centre for Cities
Analysis from the think tank Centre for Cities has identified the towns and cities that are likely to be hardest hit by rises in spending on domestic fuel and petrol or diesel. The analysis examined the average share of local households’ income spent on energy bills and petrol or diesel in 2025 to determine the places most vulnerable to rises.
At the top of the list are Burnley, Doncaster, and Derby, where the average household spends around 9% of its post-tax income on energy. This makes them the places most vulnerable to further cost increases. Household vulnerability depends on both energy-related spending (home energy and motor fuel) and income. Higher-income households are generally better able to absorb increases in costs than lower-income households.
Top 10 Most Vulnerable Towns and Cities
- Burnley (9.0% of post-tax income spent on energy)
- Doncaster (8.9%)
- Derby (8.9%)
- Leicester (8.6%)
- Northampton (8.4%)
- Stoke (8.4%)
- Preston (8.2%)
- Peterborough (8.2%)
- Bradford (8.1%)
- Barnsley (8.0%)
Least Vulnerable Towns and Cities
In the least affected city, Cambridge, the share is 3.7%, less than half that of the most affected places. The national average of post-tax income spent on energy currently stands at 6.7%. The bottom 10 cities or towns least vulnerable to price rises, in descending order, are:
- Glasgow (6.0%)
- Southend (6.0%)
- Worthing (5.9%)
- Brighton (5.8%)
- Aberdeen (5.7%)
- Edinburgh (5.3%)
- Reading (5.0%)
- Oxford (4.8%)
- London (4.2%)
- Cambridge (3.7%)
Expert Comment
Yunze Wang, analyst at Centre for Cities, said: “Government is right to target its support at poorer households. A large part of the variation in household spending on energy comes down to income. Households in cities in the Greater South East tend to have more disposable income, so they can better absorb the higher prices. Home energy and motor fuel are necessities that households cannot entirely do without. In the case of home energy, poorer households tend to live in lower-quality housing with worse energy efficiency, so they also have higher home energy bills.”
