What the October 2025 Ofgem price cap means for your energy bills this winter

The headline on energy bills in late 2025 is that the Ofgem price cap has gone up again, just as households head into the colder months. While the increase looks small on paper, it comes on top of several years of elevated prices and leaves many families still struggling with costs.

What the new October 2025 price cap actually is

The energy price cap is the maximum amount that suppliers can charge per unit of gas and electricity and for standing charges on a standard variable tariff. It is not a cap on your total bill, which still depends on how much energy you use.

Ofgem has set the cap for 1 October to 31 December 2025 at £1,755 per year for a typical dual-fuel household paying by Direct Debit. This is a 2% increase from the July–September 2025 level of £1,720.

Source: Ofgem – Energy price cap explained

An industry briefing from Energy UK notes that, even after recent falls, the cap remains around 37% higher than before the energy crisis that followed the surge in gas prices in 2021–2022.

Source: Energy UK – October 2025 price cap explainer

What this means in unit prices

The House of Commons Library estimates that under the October 2025 cap, the average price of gas for direct debit customers is 6.3 pence per kWh, while the average price of electricity rises to 26.3 pence per kWh. Average standing charges increase to 29.8 pence per day for gas and 51.4 pence per day for electricity.

Source: House of Commons Library – Gas and electricity prices during the energy crisis and beyond

Because the cap is an annualised figure based on typical use, actual bills will be higher or lower depending on your consumption and region. Usage also tends to spike in autumn and winter, so a 2% price rise can translate into a noticeable jump in monthly payments.

Why bills still feel high despite lower wholesale prices

Wholesale gas prices have fallen sharply from their 2022 peak, and the price cap is well below its extreme levels of early 2023. However, several factors keep bills elevated:

• The cap is still around a third higher than pre-crisis levels.
• Standing charges have remained high, meaning households pay more before using any energy.
• Many families built up arrears during the worst of the energy crisis and are now repaying debt alongside current bills.

Ofgem estimates that £4.4 billion in consumer energy debt has built up and that this adds around £52 to the typical annual bill under the October 2025 cap.

Source: Reuters – Ofgem plans to tackle £4.4 billion consumer energy debt

Fuel poverty and who is most affected

The UK government’s 2025 annual fuel poverty report projects that 11.2% of households in England (around 2.78 million homes) will be in fuel poverty in 2025 under the official Low Income Low Energy Efficiency (LILEE) measure. The average fuel poverty gap – the extra income needed to escape fuel poverty – is estimated at £370 in 2024 prices.

Source: Department for Energy Security and Net Zero – Annual fuel poverty statistics report 2025

Charities such as National Energy Action warn that millions of households remain at risk of rationing their heating, especially those in poorly insulated homes, on prepayment meters, or with lower incomes.

Source: National Energy Action – Fuel poverty statistics explainer

What help is available with bills this winter

Unlike previous years, there are no new UK-wide Cost of Living Payments planned for 2025. The support scheme that ran from 2022 to 2024 has ended.

Source: DWP – Cost of Living Payments guidance

However, some targeted help remains:

• Warm Home Discount – You could get £150 off your electricity bill for winter 2025–2026 if you receive the Guarantee Credit element of Pension Credit or are on a low income and meet your supplier’s criteria.

  Source: GOV.UK – Help with your energy bills

• Winter Fuel Payment – From winter 2025/26, the Winter Fuel Payment is being restored for people over State Pension age with an income of £35,000 a year or less, providing £200 or £300 towards heating costs depending on age and circumstances.

  Source: Age UK – Government help with energy bills

• Local authority schemes – Councils may operate discretionary funds or energy support under the Household Support Fund or successor schemes.

Households in difficulty are also encouraged to contact their supplier early to discuss payment plans or hardship funds.

What you can do to manage bills

While policy decisions and wholesale markets are beyond individual control, there are practical steps that can help:

• Check if you are on your supplier’s standard variable tariff and whether any fixed deals now offer better value.
• Make sure you receive all the support you are entitled to, including benefits, discounts, and local grants.
• Improve energy efficiency where possible – even small measures such as draught proofing, using thermostatic radiator valves, and reducing hot water temperatures can lower usage.
• Submit regular meter readings if you do not have a smart meter, to avoid estimated bills that may be too high.

The bottom line

The October 2025 Ofgem price cap does not bring a new crisis, but it also does not bring a full return to normality. Bills remain significantly above pre-crisis levels, and millions are still classed as fuel poor or close to it.

For most households, this winter will be about managing a higher baseline cost rather than facing the extreme price shocks of recent years. Understanding how the cap works, checking eligibility for support, and monitoring usage can help reduce the pressure, but the broader question of energy affordability in the UK remains unresolved.

References:

• Ofgem – Energy price cap explained
• Energy UK – October 2025 price cap explainer
• House of Commons Library – Gas and electricity prices during the energy crisis and beyond
• DESNZ – Annual fuel poverty statistics report 2025
• National Energy Action – Fuel poverty statistics explainer
• GOV.UK – Help with your energy bills
• Age UK – Government help with energy bills
• DWP – Cost of Living Payments guidance
• Reuters – Ofgem plans to tackle £4.4 billion consumer energy debt