Don’t get burnt by rising energy bills

What’s changing?

The energy price cap will rise by 2% from 1 October 2025, meaning the typical annual dual-fuel bill will increase from £1,720 to £1,755.

Bear in mind that the price cap is not a cap on your bills, it’s just maximum price energy suppliers can charge for each unit of gas and electricity and for the daily standing charge. These figures relate to the amount a typical household using electricity and gas and paying by Direct Debit would pay over a year. If your energy usage is high, you may end up paying more than this, or less if your usage is low.

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Make sure you’re on the best possible tariff

Around 22m UK households are on their energy supplier’s Standard Variable Rate (SVR) and paying the maximum their supplier is allowed to charge, according to Ofgem, even though they might be able to make significant changes by moving to a cheaper deal.

According to TotallyMoney, by switching to a cheaper tariff, households can save an average of £271 a year on their energy bills. Alistair Douglas, chief executive at TotallyMoney, said: “Comparing providers takes minutes, and your energy supply won’t be affected during the changeover. So, check to see if you’re free to switch, and if you’ve not changed providers in the last year, then it’s likely that you can start saving money.”

If you want protection against costs potentially rising again in coming months, you might want to consider switching to a fixed rate deal, which fixes the unit price of energy for a set period.

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Tom Lyon, director at Compare the Market said: “Some forecasters have suggested energy prices could rise in autumn after initial predictions suggested they could drop. The launch of new fixed rate deals, which fix the unit price of energy for a set period, can help to simplify budgeting and could allow households to find deals below the energy price cap. If you’re thinking of switching, you might also want to consider whether the supplier charges exit fees if you leave the tariff early.”

Make your home more energy efficient

Reducing your energy usage is one of the best ways to lower bills, and making changes doesn’t have to be complicated or expensive.

Simple steps that can help include sealing gaps and draughts around doors and windows, bleeding radiators to keep them running efficiently, switching to LED light bulbs, and using appliances efficiently, for example washing your clothes at 30°C rather than 40°C.

Get help with your bills

Every household where the billpayer receives an eligible means-tested benefit should be in line for Warm Home discount, which entitles you to £150 off your energy bills this winter.

In England and Wales, this means households in receipt of Housing Benefit, Income-related Employment and Support Allowance, Income-based Jobseeker’s Allowance, Income Support, Pension Credit and Universal Credit will qualify. The payment should be made automatically, but if you haven’t received a letter telling you you qualify for the Discount by January 2026, you will need to call the Warm Home Discount helpline on 0800 030 9322.

If you were born before 22 September 1959 and your annual income is lower than £35,000, you could also get either £200 or £300 (if you’re aged 80 or above) from the Winter Fuel Payment to help you pay your heating costs. If you get your State Pension or other benefits paid into your bank account, that’s how you’ll receive your Winter Fuel Payment, and you should receive this year’s Payment in either November or December.