London, 27 August 2025 – Millions of UK households will see their energy bills rise slightly this autumn as Ofgem confirms its latest price cap, adding pressure on families already facing stretched budgets.
Analysts at Cornwall Insight estimate that the average dual fuel bill will increase by around 1% from October, moving from £1,720 to £1,737 a year – an extra £17 for a typical household. While the rise is modest compared to previous spikes, it comes at a time when many consumers had hoped for relief.
Why bills are going up
The increase reflects more than just wholesale energy costs. Ofgem’s new calculation is expected to include adjustments linked to government policy measures. Chief among these is the expansion of the Warm Home Discount scheme, which adds around £15 to the average annual bill. At the same time, it will provide £150 in direct financial support to 2.7 million more vulnerable households across the country.
Cornwall Insight also points to volatile energy markets, with gas and electricity prices still influenced by geopolitical uncertainty, shifting global trade, and seasonal demand. A small reduction in January 2026 is possible, but far from guaranteed.
Expert commentary
Dr Craig Lowrey, principal consultant at Cornwall Insight, said:
“News of higher bills will not be welcomed by households across the UK, especially as colder weather approaches. Although part of the increase is linked to supporting those most in need, it still leaves typical households facing higher costs overall. It is a reminder that the energy price cap is not just about wholesale markets, but also wider policy and system charges.”
Consumers encouraged to take action
Consumer experts are stressing that the price cap does not guarantee the cheapest tariff available. It only limits what suppliers can charge on standard variable tariffs, leaving many households paying more than they need to.
Households are being advised to regularly compare energy prices to see whether switching to a fixed plan or moving to another supplier could cut costs. Platforms that provide trusted energy comparison tools give consumers clear visibility of available tariffs, helping them make informed decisions.
In many cases, reviewing the market allows households to find cheaper energy tariffs that better reflect their usage patterns, offer improved stability through the winter, and reduce exposure to sudden wholesale price movements.
Background on the price cap
Introduced in January 2019, the energy price cap is reviewed every three months and sets maximum unit rates and standing charges for households in England, Scotland, and Wales. While it prevents suppliers from charging excessive amounts on default tariffs, it does not cap total bills. Actual household costs still depend on usage, property efficiency, and heating needs.
What this means for UK households
With the October increase now confirmed, the message for households is clear: do not assume that the price cap equals the best deal. Instead, checking the market regularly, comparing options, and switching where necessary remain the most effective ways to manage rising costs.
As the UK continues to move towards renewable power and energy independence, experts say policy and market reforms will play a growing role in shaping consumer bills. For now, however, households are encouraged to take practical steps to protect themselves ahead of winter.
