Ofgem confirms 2% October rise, bringing higher bills for winter.
British households are set to pay more for gas and electricity after Ofgem confirmed the UK energy price cap will increase by 2% from 1 October 2025.
The change will push the average annual dual-fuel bill to £1,755, a £35 rise compared with the summer cap.
The rise comes despite falling wholesale energy prices. Ofgem explained that the increase is instead driven by higher network and policy costs, including the expansion of the Warm Home Discount scheme and the growing expense of balancing the energy grid as the UK shifts to greener sources.
For many families, this is the second rise of the year. The cap jumped 6.4% in April before easing over the summer, and Citizens Advice warns that household energy debt – now over £4 billion – is at record highs.
Consumer groups argue that while discounts offer some relief, they don’t tackle the deeper affordability crisis, calling instead for investment in energy efficiency.
Politicians have also weighed in. Labour has accused the previous Conservative government of leaving households exposed to volatile fossil fuel markets by stalling on renewable investment.
Analysts, meanwhile, suggest there may be a slight fall in January’s price cap, though future costs – including potential contributions to nuclear projects like Sizewell C – could push bills higher again.
What Households Can Do to Cut Costs
With winter approaching, households can take proactive steps to ease the financial pressure:
- Consider switching to a fixed-rate tariff. Over a third of UK households have already opted for fixed deals—providing stability and shielding against upcoming cap rises. Our article Fixed vs Variable Energy Tariffs breaks down which deals might suit different usage patterns and risk appetites.
- Boost energy efficiency at home. Small, practical changes – draught-proofing, LED lighting, and smart thermostat use – can lower energy use significantly. Find out the pros and cons of smart meters to help you decide if installation makes sense for you.
- Avoid myths and misinformation. Some widely circulated tips like turning appliances off at the plug rather than using standby mode can be ineffective or even counterproductive. Our guide Energy Myths Busted cuts through the noise.
- Seek eligible support. Households at risk should check entitlement to schemes like the Warm Home Discount or Winter Fuel Payment. Suppliers may also offer hardship funds or flexible payment plans.
Though the October 2025 price cap increase may appear modest, it arrives amid escalating debts and rising pressure. Early action—whether through tariff choices, home efficiency improvements, or accessing support—can help ease the impact over the colder months.
If you’re looking to get ahead before the increase comes, be sure to check out and compare energy deals on SwitchGenius to find a great deal that’ll help ease the costs this winter.
