From 1 October to 31 December 2025, the energy price cap in the UK has gone up slightly. This means your gas and electric bills might cost a bit more.
What is the energy price cap?
The energy price cap is the maximum price that energy companies are allowed to charge you for each unit of gas and electricity.
- It helps stop companies charging you too much.
- It doesn’t mean your bill will be exactly the same as everyone else’s.
- The more energy you use, the more you’ll still pay.
Think of it like a speed limit. The cap is the top speed (price) companies can go, but how far you drive (use energy) decides your final cost.
What’s changing in October?
From 1 October 2025, the cap for a “typical household” paying by Direct Debit has gone up by 2%. This means the average yearly bill is now:
£1,755 a year (up from £1,720).
That’s about £2.93 more per month, or £35 extra per year.
What do the new prices look like?
Here’s what’s changed:
⚡ Electricity:
- Unit price: 25.73p → 26.35p
- Daily charge: 51.37p → 53.68p
🔥 Gas:
- Unit price: 6.33p → 6.29p (slightly lower)
- Daily charge: 29.82p → 34.03p (higher)
Even though the price per unit of gas dropped a bit, the daily charges (what you pay just for having gas/electricity) are higher. That’s why bills overall are going up.
Why does the energy price cap keep changing?
The cap is looked at every 3 months by Ofgem (they’re the energy regulator).
The cap goes up or down depending on things like:
- How much it costs to buy energy from other countries
- How much it costs to run power lines and pipes
- Taxes and government schemes
If those costs go up, the cap usually goes up too.
Will everyone pay £1,755?
No, that’s just an estimate for a “typical” home.
You might pay more or less, depending on:
- How much energy you use
- How many people live with you
- What kind of meter you have (like a prepayment meter or pay-as-you-go)
- Where you live in the UK
What can I do to manage rising bills?
Here are simple steps to help:
1. Do a benefit check
You might be missing out on extra money or discounts.
Use the free IE Hub Benefit Checker to find out if you could get:
- Universal Credit
- Water discounts
- Support with bills
Even a small top-up can make a big difference.
2. Ask about social tariffs
Some energy and water companies offer cheaper rates if you:
- Have a low income
- Receive benefits
- Are disabled or elderly
You just need to ask your supplier.
3. Keep an eye on your usage
Little changes can help:
- Turn off things at the plug
- Use the washing machine on cooler settings
- Lower your thermostat by 1 degree
These can save money every month.
4. Check your tariff
Most people are on the default tariff (covered by the cap), but not always.
☎ Call your energy supplier or check your online account to be sure.
5. Talk to your supplier early
If you’re worried about bills, tell your supplier now.
They can:
- Offer payment plans
- Give you more time
- Accept your budget from IE Hub so you don’t need to explain things on the phone
You don’t need to struggle in silence.
Example: How this could look
Sarah lives alone in a small flat. She uses less energy than a “typical” home. Her bill was around £1,500 last year. Now with the new cap, she’ll likely pay £30 to £40 more a year.
She uses IE Hub to:
- Keep track of her income and bills
- Check for benefit help
- Share her budget with her energy supplier
It helps her stay on top of things without phone calls or stress.
Tools to help you
- IE Hub Budget Tool- Make and share your budget online
- Benefit Checker- See if you're owed extra income
- StepChange- Free debt advice
- MoneyHelper- Tips on saving money and understanding bills
Final Thought
Even small changes in energy prices can cause big stress, especially if you’re already on a tight budget.
But there is support available.
At IE Hub, we believe you shouldn’t have to explain yourself over and over just to get help. That’s why our tools are free, simple, and made for real people.
You’re not alone, and you don’t have to face this winter without support.
