Millions of households in England, Scotland and Wales will face higher gas and electricity bills this autumn after energy regulator Ofgem confirmed a 2% rise in the UK energy price cap from 1 October 2025.

The change means the average annual household energy bill for those paying by Direct Debit will increase by £35 a year, bringing the total to £1,755. That’s around an extra £2.93 per month, so a home currently paying £100 a month will soon pay about £102.

Why Are UK Energy Bills Rising in October 2025?

Ofgem explained the rise is due to several factors: Warm Home Discount expansion – an extra 2.7 million low-income households will receive a £150 rebate this winter. Funding this adds £1.42 per month to all bills.

  • Electricity network balancing costs: keeping the UK’s power grid stable is adding £1.23 per month.
  • Gas network costs: higher charges due to lower demand are adding about 72p per month.
  • Standing charges: fixed daily fees will rise by 4% for electricity and 14% for gas (from 29p to 34p a day).

Although the increase will be unwelcome for many, Ofgem noted that in real terms, the cap is 0.9% lower than the same period in 2024, once inflation is factored in.

How Does This Compare with Past Energy Prices?

  • Bills remain far below the early 2023 peak when the average annual cap topped £2,300 during the energy crisis.
  • In July 2025, the price cap fell by 7% to £1,720, but this autumn rise means households face higher costs again heading into winter.

Impact on Households

Consumer groups warn the price cap rise will add pressure to already stretched budgets:

  • Citizens Advice says average household energy debt is now over £1,000.
  • The End Fuel Poverty Coalition estimates 12 million households remain in fuel poverty.
  • Campaigners argue that rising standing charges are particularly unfair, since they must be paid even if very little energy is used.

Gillian Cooper, director of energy at Citizens Advice, said:

“With millions of households already in debt as the colder months draw in, this news offers no comfort. The government must set out a long-term plan to support struggling households and invest in upgrading homes to cut bills for good.”

How to Save on Energy Bills This Winter

Here are four practical steps to reduce the impact of the October price rise:

1. Switch to a Fixed Tariff

Some fixed deals are currently £200–£292 cheaper per year than the new cap. Use comparison sites like Uswitch or MoneySavingExpert to see if switching could save you money.

2. Check for Financial Support

  • Warm Home Discount – worth £150 automatically if you’re on certain benefits.
  • Supplier hardship funds – grants up to £1,700 are available from some providers.
  • Local council schemes – the Household Support Fund may provide energy vouchers or cash help.

3. Pay by Direct Debit

This is the cheapest payment method, saving an average of £130 a year compared with paying on receipt of bills.

4. Cut Energy Use Where Possible

Small changes can add up – switching appliances off standby and washing clothes at 30°C can reduce yearly costs.

⚠️ ECO4 has closed to new applications — here’s the help you can get nowECO4 grants are no longer available. See the grants and funding you can get now.

5. Check Your Home’s Energy Efficiency with the EPC Checker

If your home is hard to heat, poorly insulated, or running on an older, inefficient heating system, there could be long term help available. Use our EPC Checker to view your Energy Performance Certificate (EPC) and see your property’s energy rating.

A low rating may indicate that your home could benefit from energy saving upgrades such as loft insulation, cavity wall insulation, double glazing, or a more efficient heating system. Through government backed schemes like ECO4 (Energy Company Obligation) and GBIS (Great British Insulation Scheme), you might qualify for fully funded improvements. Improving your home’s energy efficiency can help reduce energy waste, lower bills, and make your home warmer and more comfortable over time.

Check your EPC today and see what improvements could make your home more energy-efficient, it could save you hundreds over the coming years.

One Last Thing

The October 2025 energy price cap rise means households will face another expensive winter, even though bills remain below the 2023 peak.

While extra government support will help millions of low-income families, campaigners say long-term solutions are needed: fairer pricing, nationwide energy efficiency upgrades, and investment in renewable power.

For now, the best advice is to review your tariff, check for support schemes, and take steps to cut usage to keep costs as low as possible.