The changes, which come into effect on 1st April 2021, mean customers paying for gas and electricity by pre-payment meter will see their costs rise by £87, from £1,070 to £1,156 for average consumption.
According to Ofgem, the increase is primarily driven by higher costs to supply energy, particularly wholesale energy costs.
Matthew Cole, Fuel Bank Foundation chair of trustees, said the price cap increase couldn’t have come at a worse time for vulnerable consumers.