The company said the Government's social and environmental programmes are one of the reasons for the rise.
Ian Peters, Managing Director of
British GasResidential Energy, said:
“I know these are difficult times for many customers and totally understand the frustration that so many household costs keep on rising when incomes aren't keeping pace.
"We haven't taken this decision lightly, but what's pushing up energy prices at the moment are costs that are not all directly under our control, such as the global price of energy, charges that we have to pay for using the national grid that delivers energy to the home, and the cost of the Government's social and environmental programmes."
Mr Peters added:
“Energy efficiency is the best way to keep bills down, and I encourage anyone who has not benefited from them to go online and check if they are eligible. On average, insulation can save you around £200 a year.
“A price rise doesn't necessarily mean energy bills have to go up too. The amount you pay depends not just on the price, but on how much gas and electricity you use. Energy efficiency is making a real difference."
Consumer watchdog
Which?said the price rise is "yet another blow to consumers at a time when rising energy prices are consistently one of their top financial concerns".
Which? executive director Richard Lloyd said:
"In recent years we've seen a domino effect on energy price rises where all the major companies follow suit. We wait to see what the other suppliers decide to do, but so far First Utility is the only company to confirm they will not be raising their prices.
“Current plans to reform the energy market simply don't go far enough. We want the Government to intervene to make sure everything possible is done to keep prices in check.
"We need simpler pricing, we need to break the stranglehold of the biggest energy companies by separating domestic supply from generation and the Government must make sure that its own policies are not adding unnecessary costs to consumers' bills.”
British Gassaid more than 500,000 elderly and most in need customers will be protected by an automatic discount to offset the price increase throughout the winter, worth £60 per dual fuel household.
This is in addition to the £135 that will be paid to many of these customers who qualify for the Government's Warm Home Discount scheme.
British Gas said it has set the widest criteria of all the major suppliers for this scheme, helping as many customers as possible.