UK Energy Price Cap: What You Need To Know - Energy Angels
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UK Energy Price Cap: What You Need To Know

Tags: energy industry, energy price cap, Energy price increases, Ofgem, social housing

Last updated: 10th April 2025

Ofgem have announced the new energy price cap, which came into effect on 1st April 2025, a higher than expected increase of 6.4%. This means the average energy bill has now risen by £111 a year, reaching £1,849. 

Here’s What’s Changing:

Gas: Capped at 6.99p per kilowatt-hour (kWh)

Electricity: Capped at 27.03p per kWh

Average Standing Charges: A reduction to 53.80p per day for electricity and a rise 32.67p per day for gas

Energy Price Cap Changes

Why Are Bills Going Up?

Every three months, Ofgem, the UK’s energy regulator, reviews the price cap, which sets a limit on the cost of each unit of gas and electricity. This ensures fair pricing for the 26 million households on standard variable tariffs.

This quarter’s rise is largely driven by an increase in wholesale energy prices and ongoing pressures from global markets. Although prices have fallen from their 2022 peak, energy suppliers still face higher costs when purchasing gas and electricity, which ultimately affects what households pay.

Should I Take A Meter Reading?

Providing a meter reading when the energy price cap changes ensures you’re charged accurately, avoiding estimates at an outdated rate. This is particularly crucial when prices increase. If you have a smart meter, there’s no need to submit a reading, as your usage is recorded and billed automatically.

Standing Charges

Over the last three years, high energy prices have become a reality for many of us. According to Reuters, as of December 2024, households across the UK owe £3.82 billion to energy suppliers. The average energy debt per customer of is £1,541.

Despite this, many people are finding creative ways to stay on top of their bills. From cutting back on usage to seeking out better deals, there’s always something you can do to make things a little easier.

The Bigger Picture

Standing charges can vary slightly depending on your region and how you pay for your energy. Prepayment customers now pay similar rates to those on direct debit, after Ofgem took steps to align the two in 2024.

Our Top Tips to Save Energy

At Energy Angels, we know that small changes can make a big difference. Here are some easy ways to keep your costs down this winter:

  • Shop around: New tariffs are hitting the market, and you might find a deal that works better for you.
  • Look for support: Many energy suppliers offer help, such as emergency credit or hardship funds.
  • Claim what’s yours: If you’re eligible for benefits like Pension Credit, it could unlock extra support, such as winter fuel payments.

Grants, Schemes, and Funding Support for All UK Households

Across the UK, a variety of grants, schemes, and funding options are available to support individuals, families, and pensioners alike. Here’s a guide to what’s out there and how to access it.

Help for Low-Income Households

  • Warm Home Discount Scheme: Provides a one-off £150 discount on electricity bills. Check your eligibility and participating suppliers on the Warm Home Discount page.
  • Cold Weather Payments: If temperatures fall below zero for seven consecutive days, qualifying households can receive £25 for every cold period. Learn more on the Cold Weather Payments page.
  • Fuel Vouchers: If you’re struggling to top up a prepayment meter, some energy suppliers and charities provide vouchers. Visit your local council or ask your supplier for help.

Support for Families

  • Household Support Fund: Distributed by local councils, this fund helps with essential costs like energy and food. Contact your local council to apply or learn more on the Household Support Fund page.
  • Child Winter Heating Assistance (Scotland): Provides a £235.70 payment to families of children with disabilities to help cover heating costs. Learn more at mygov.scot.

Help for Renters and Social Housing Residents

  • Local Council Grants: Many councils offer specific energy-saving initiatives for renters and tenants. Check your council’s website or visit Gov.uk’s council finder tool.

Help for Pensioners

  • Winter Fuel Payment: Eligible pensioners can receive up to £300 to help with heating bills. Learn more on the Winter Fuel Payment page.
  • Pension Credit: Worth an average of £3,900 a year, this benefit can unlock additional support. Check eligibility with the Pension Credit calculator.

General Tools and Resources

  • Energy Saving Trust: Find advice and funding for energy-efficient home improvements at the Energy Saving Trust.
  • Citizens Advice: For tailored advice, visit Citizens Advice or call their helpline.

What Happens Next?

The next energy price cap review will be announced by Ofgem in late May, and come into effect on 1 July 2025. While future changes are uncertain, analysts are watching wholesale price trends closely.

We’ll keep you updated as soon as the next rates are confirmed.