By Sarah Macklin 
Households across the UK are bracing for yet another rise in energy bills this autumn.
From 1 October 2025, the Ofgem energy price cap will increase by 2%, nudging the average dual-fuel household bill on a standard variable tariff from £1,720 a year to £1,755.
While £35 extra annually may not sound like a huge leap, the timing means the change will be felt more sharply in people’s wallets, as we head into the colder months when heating use inevitably ramps up.
Spread across the year, it works out at around £2.93 more per month, though of course many households will find their winter bills spiking by far more depending on usage.
Why are energy bills rising again?
It’s a frustrating development for many, especially as wholesale energy prices themselves have actually dipped by about 2%.
The rise instead stems from other factors, mainly government policies and the costs of maintaining a modernised, greener energy system.
According to analysts at Cornwall Insight, around £15 of the increase is linked to the expansion of the Warm Home Discount scheme, which provides support to vulnerable households. A further £17 is being passed on to consumers to help cover the costs of balancing an energy grid that now relies more heavily on renewables. In other words, while the unit price of energy has eased slightly, households are still shouldering the expense of systemic changes designed to make the sector more sustainable in the long run.
What does money-man Martin Lewis have to say?
Consumer champion Martin Lewis hasn’t minced his words about what this means for bill-payers. Speaking on his BBC podcast, he reminded people that:
“Two-thirds of homes in England, Scotland, and Wales are on the price cap, their firm’s standard tariff. You should switch to the cheapest fix.”
His advice is clear: don’t simply accept the rise as inevitable.
Those on the default standard variable tariff are particularly exposed to increases in the cap, but by switching to a fixed-rate deal, many households could lock in lower rates and avoid paying more than they need to. Lewis has suggested that the savings could be substantial, with some families potentially cutting as much as £200 a year from their bills by moving quickly to a competitive fixed tariff.
What does this mean for your household?
If you’re on a standard variable tariff, you’ll see your annual bills move up in line with the cap from October, unless you take action. For the average household, that’s the extra £35 a year, though for larger families or those in poorly insulated homes, the impact could be far greater.
For anyone already on a fixed deal, there’s some relief, as the increase won’t touch you until your current contract expires.
Another thing worth noting is that the rise won’t just affect the total bill figure. Both standing charges and unit rates (the cost per kilowatt hour of gas and electricity) are creeping up slightly as well, although the exact amounts will vary depending on where you live and how you pay. That means even households who use very little energy can feel the pinch, because standing charges are effectively a fixed daily cost just for being connected to the network.
Help is available
For those already finding it hard to keep up with rising costs, there is support on hand.
The Warm Home Discount continues to offer a rebate to eligible low-income households, while energy suppliers must provide payment plans for customers who are struggling.
Charities such as Citizens Advice can also step in with guidance, and in some cases, households may be entitled to extra financial help through government cost-of-living schemes. It’s always worth checking sooner rather than later, as funds and schemes can be limited.
The October rise may look modest on paper, but for millions of families, even a few pounds extra each month is another stretch on already tight budgets. Energy remains one of the largest household expenses, and with colder months fast approaching, usage is set to climb just as the price cap does the same.
The message from experts is clear: don’t wait to see what happens. Shop around, explore your options, and consider switching to a fixed tariff if the numbers stack up for you.
As Martin Lewis summed up, the vast majority of households are on tariffs tied to the price cap. Unless they act, they’ll be hit by the increase automatically. By being proactive now, there’s at least a chance to soften the blow before those first hefty winter bills land on the doormat.
