UK households are facing yet another bump in their energy bills this autumn. Ofgem, the energy regulator, has confirmed that from October 2025 the average annual bill will rise by around 2%

— that’s an extra £35, bringing a typical household bill to £1,755 a year.

It may sound like a small increase, but for many families already stretched thin, every extra pound matters. To put things in perspective, energy bills are still £713 higher than they were before the pandemic.

Why are bills going up?

The rise comes down to the energy price cap, which limits what suppliers can charge per unit of gas and electricity. While this cap doesn’t set a maximum bill (your usage still determines that), it does control unit prices and standing charges.

Here’s the “hidden” sting:

Standing charges — the fixed daily fee you pay just for being connected — are going up too.

From October, electricity standing charges rise by 4%, and gas standing charges by a hefty 14%.

That means even if you cut back on your energy use, you’ll still pay more just for being hooked up to the grid.

What’s driving this increase?

There are two main reasons behind the higher standing charges:

1. Government support schemes – Part of the extra cost is linked to the Warm Home Discount, which helps 2.7 million vulnerable households with a £150 rebate. The funding for this is spread across all bills, adding about 7p a day.
2. Network costs – It’s getting more expensive to run and maintain the pipes and cables that deliver energy to our homes. Ofgem says these charges will rise by £24 from October, making up almost a quarter of the average bill.

Campaigners argue that energy companies have made huge profits in recent years — Citizens Advice estimated nearly £4bn in excess network profits over the last four years — and want that money redirected to struggling households.

Why is gas hit hardest?

Gas is bearing the brunt of the changes. Ofgem has shifted more of the cost of running the gas network onto standing charges instead of unit prices.

So, while the cost per unit of gas has dipped slightly, the rise in standing charges cancels out any real savings. For many, the result is that gas still feels painfully expensive, especially compared to pre-crisis levels.

Is there a way out?

Some households are looking at alternatives, like heat pumps, which run on electricity and are more efficient than gas boilers. Installing one can be pricey (often over £10,000 more than a standard boiler), but government grants of up to £7,500 are available. In the long run, a heat pump could shave hundreds off annual bills and cut carbon emissions too.

What if I’m worried about affording my bills?

If you’re struggling, you’re not alone — and there is help:

Government schemes such as the Warm Home Discount, Winter Fuel Payment, and the Household Support Fund.

Supplier support – many energy companies offer hardship funds or can set up payment plans.

MoneySavingExpert’s Cheap Energy Club – to compare fixed deals, some of which may save households up to £250 a year.

It’s also worth contacting your supplier directly if you’re falling behind. Many have dedicated teams to help with debt relief and energy efficiency upgrades. Photo by Caroline Ford, Wikimedia commons.