Millions of UK households are facing yet another rise in energy bills this autumn, but experts say a simple switch in payment method could save each household a significant sum—just as the colder months threaten to ramp up costs. With the energy regulator Ofgem set to confirm its new price cap on August 27, 2025, the looming increase has prompted calls for consumers to act now and avoid being caught out by higher charges.
According to MoneySuperMarket’s energy expert Laura Hinton, 3.4 million households—about 12% of all UK homes—are still paying their energy bills via the traditional “Paying on Receipt of Bill” (PORB) method. This approach, which involves settling bills by cash, cheque, or bank transfer after receiving them, is costing these households an average of £138 more per year compared to those who pay by Direct Debit. Collectively, that’s a staggering £459 million extra flowing to energy suppliers annually, as reported by the Manchester Evening News.
“With energy bills expected to rise once again this winter, it’s important for households to act now by taking stock of their energy bills, switching provider and reevaluating how they pay for their energy,” Hinton said. “As well as switching, if you choose to pay your energy bill by cash, bank transfer or cheque out of habit, making one small change to paying by Direct Debit could mean an extra saving of £138 per year.”
The urgency of this advice is underscored by forecasts from Cornwall Insight, a leading industry analyst, which predicts that the typical household energy bill will rise by £17 to £1,737 per year when the new price cap takes effect from October 1, 2025. This represents a 1% increase from the current cap of £1,720, reversing earlier expectations that bills might fall due to easing tensions in the Middle East. Ofgem’s price cap, introduced in January 2019, is designed to prevent households on standard variable or default tariffs from being overcharged, but it only sets a maximum unit price for gas and electricity—not a ceiling on total bills, which still depend on consumption and location.
For vulnerable households, there’s a mixed bag of news. Cornwall Insight notes that the upcoming cap period will include an expansion of the Warm Home Discount scheme, providing £150 in support to an additional 2.7 million people, but also adding around £15 to the typical bill. The price cap will be reviewed again at the end of December, meaning these numbers could shift yet again before winter is out.
For those wondering how to navigate this landscape, experts stress that switching to a fixed price energy tariff can offer protection against further price hikes. Fixed deals lock in your unit price for the duration of the contract, shielding you from increases in the price cap. Ofgem reports that, as of April 2025, 19 million customers are already on fixed deals, and industry observers say now is a good time to consider joining their ranks.
Website The Energy Shop reports that the cheapest fixed deal available is currently around £1,464.52 per year—about £273 less than the forecasted price cap. Examples of competitive fixed offers include Outfox Energy’s 12-month Fix’d Dual Aug25 tariff at £1,464.52, Ecotricity’s EcoFixed 1 Year Green Tariff at £1,539.70, and EDF’s new Simply Fixed Aug26v11 tariff at £1,634. EDF itself projects the average annual bill under the price cap will be closer to £1,744 over the next year, making these fixed options all the more attractive.
To find the best deal, consumers are advised to compare offers not just from their current supplier but across the market. MoneySuperMarket estimates that households could save an average of £715 annually by switching their energy provider—a figure that could make a real difference as winter fuel usage climbs.
But payment method matters, too. Ofgem’s price cap for July to October this year is £1,720 for a typical Direct Debit customer, but £1,855 for those on standard credit (PORB)—a difference of £135 per year. The penalty for sticking with PORB is particularly acute for older people, who are more likely to use this payment method. For pensioners on their supplier’s Standard Variable Tariff (SVT), the extra cost can wipe out up to 69% of their Winter Fuel Allowance if they don’t switch, according to MoneySuperMarket.
“For most people switching energy is surprisingly quick and easy to do,” said Hinton. “So, if you know someone who could save money by moving to Direct Debit or switching their energy provider, it’s a great time to spend a few minutes helping them find a better deal, as they could save a significant amount of money—especially once summer is over and energy use increases over winter.”
Households paying by PORB also risk missing out on the market’s best deals, many of which require payment by Direct Debit to qualify. As competition among suppliers heats up, the most attractive rates are increasingly reserved for customers willing to make the switch. The Department for Energy Security and Net Zero confirms that the 3.4 million households still using standard credit could collectively save up to £459 million a year by changing their payment method.
Beyond switching tariffs and payment methods, there are other ways to cut energy costs. MoneySuperMarket suggests simple steps like switching off unused lights and appliances, which could save up to £537 a year, and replacing old bulbs with LEDs for an additional £45 in savings. Plugging draughts can also help, with potential savings of up to £40 a year—or more if you opt for professional draught-proofing.
Ofgem advises all customers to check with their supplier to understand exactly how the new price cap will affect their bills. Since the cap limits only the unit price, actual costs will vary depending on usage and region. Customers should look online or call their supplier to get a personalized estimate for the coming year.
For those reluctant to switch suppliers, it’s still worth investigating whether your current provider offers a fixed deal that could shield you from further price rises. As wholesale prices have stabilized since the shocks following Russia’s invasion of Ukraine, more suppliers are offering competitive fixed tariffs—a marked change from the recent past, when standard variable tariffs were often the only option.
With the energy market in flux and winter on the horizon, the message from industry experts is clear: don’t get left behind. Whether it’s switching payment methods, comparing tariffs, or making small changes at home, a little action now could mean a lot more money in your pocket when the next bill arrives. For millions, that’s advice well worth heeding.
As the autumn chill sets in, the best defense against rising energy bills may be as simple as a phone call or a few clicks online—a small effort that could bring lasting relief to households across the UK.
