UK households urged to make change to save £143 as energy bills to skyrocket from October

An expert has urged Brits to consider changing how they pay for their energy usage. Ofgem has announced its latest change to its energy price cap, which will kick in between October and December 2025. The cap will rise by 2%, bringing the average cost per household up to £1,755. It marks an increase of £35 from the current cap, which is the typical sum most households pay for gas and electricity.

Households can calculate their new expected spend for 2025 by adding £2 to every £100 of their current annual energy spend. Campaigners have already called for urgent action from the Government to support households amid ongoing "fuel poverty". One expert has advised Brits to take one action to save themselves £143 on their energy bills. Laura Hinton, energy expert at MoneySuperMarket, has said people should consider switching now to fixed price energy tariffs to save themselves from drastic bill increases.

"Today's announcement means that from October, the energy price cap is now around 50% higher than when it was first introduced in 2019, with the average UK household currently paying around 27% more for their energy than their European neighbours," she said.

"However, it's important for customers to remember this latest rise only applies to Price Capped energy tariffs from October, meaning customers who switch and fix now can protect themselves from price rises this coming winter.

"Currently, around 66% of customers are on a standard variable rate, putting them at risk to price increases this winter. However, there is a range of below-price-cap tariffs available, including fixed deals. That means households who shop around now could save an average £271 and avoid the October price hike."

She continued: "We've been working with our energy partners for customers to bring more competition into the market with below-price cap deals, including a new, exclusive 12-month fix from E.On at an average cost of £1,577 per year.

"Not only is this the cheapest deal from a big supplier, but by switching today, customers can save £143 a year against the current price cap and lock their price in now before the bills rise."

Reacting to today's Ofgem announcement, Simon Francis, coordinator of the End Fuel Poverty Coalition, said: "Among the hardest hit by the planned price cap rise will be the 12 million households already in fuel poverty. It means that average energy bills will remain painfully high and hundreds of pounds a year more than in winter 2020/21."

He added: "We need urgent reforms to fix the broken pricing system, steps to ensure households benefit from targeted support for cold homes, a nationwide insulation and ventilation drive, reform of energy trading rules and lower standing charges. Meanwhile, expansion of renewables and upgrading the grid must be funded by investment or by tackling excess network and energy company profits, not by loading more costs onto struggling households."