Millions of households across England, Wales, and Scotland are bracing for another winter of higher energy bills as a 2% rise in gas and electricity prices came into effect on October 1, 2025. The increase, set by regulator Ofgem’s latest price cap, pushes the typical annual household energy bill to £1,755—up £35 from the previous rate. For many, this uptick is more than just a number; it’s a stark reminder of the ongoing struggle with the cost-of-living crisis that’s gripped the UK since energy prices first spiked in 2022.
Prime Minister Keir Starmer, speaking at the Labour Party Conference in Liverpool, doubled down on his pre-election promise that, under Labour’s existing energy policies, bills would be £300 cheaper. “It’s a really important promise, and already what we’re doing is bringing the bills down,” Starmer stated, according to BBC reporting. Yet, with the latest price cap increase, the gap between government assurances and everyday realities seems to be widening for many families.
Energy suppliers and campaigners have called for what they term “enduring” and targeted support for those in financial difficulty. As Ned Hammond, deputy director at Energy UK, put it: “The level of support [is] still insufficient for those that need it most. The government needs to make swift progress to improve targeting and design an enduring support scheme that effectively addresses fuel poverty.” Hammond’s comments, reported by BBC, echo a growing consensus among charities and industry leaders that piecemeal measures are no longer enough.
One such measure is the Warm Home Discount, which knocks £150 off winter bills for one in five households—primarily those on benefits. However, this support is funded by a rise for all billpayers, effectively spreading the cost across the population. Energy Minister Martin McCluskey pointed to this and other initiatives, noting, “In the coming weeks, we will be announcing details of the biggest home upgrade programme in British history to improve up to five million homes, making them cheaper and cleaner to run.” The government has also pledged to invest in home-grown energy to bring down household costs in the long term.
But for households facing immediate hardship, these promises may feel distant. Ofgem’s most recent data, covering April to June 2025, revealed that more than one million households have no arrangement in place to repay the energy debt they owe—a record high. The total debt owed to suppliers now stands at a staggering £4.4 billion, according to official figures. Ofgem has proposed a Debt Relief Support Scheme, which would allow suppliers to write off debts deemed unpayable or help customers by “debt matching” their payments. The scheme, if implemented, would likely be funded through either higher bills for everyone or direct government support.
In Scotland, the situation is particularly acute. Fuel poverty there rose to 34% in 2023, up from 31% the previous year, according to data cited by The National. Energy charity ALIenergy has called for targeted social energy tariffs to help curb fuel poverty in light of the latest price cap increase. “On a daily basis, we assist people who have to make the terrible choice between eating and heating their homes, and with winter on the way and the energy price cap having increased yet again, this issue must be addressed by the UK government,” said Lynda Mitchell, ALIenergy’s chief executive. The charity’s plea is echoed in the Energy Social Tariff Bill, introduced by Labour MP Polly Billington in July 2025, which demands that energy companies provide social tariffs for low-income customers.
Political divisions over how to tackle the crisis remain sharp. Right-leaning parties, such as Reform, have argued that government subsidies are actually driving bills higher, pledging to scrap net-zero funding if they win the next election. However, the Climate Change Committee’s data tells a different story. According to the committee, the average system cost of decarbonised electricity production in 2035 will be between £55 and £73 per megawatt-hour (MWh), compared to the average wholesale electricity price of £127/MWh in 2023. This suggests that investments in renewables could significantly lower long-term costs.
Sam Kimmins, director of energy at the Climate Group, explained to The National: “UK energy bills remain sky high for a reason – our dependence on imported gas. If you took renewables out of the energy mix, they’d be even higher. But the UK needs to invest in its grid. Built for the 20th century, it’s simply not fit to cope with the modern demands of AI and electrification. If we don’t, we’ll be stuck with some of the world’s highest energy bills – for the long haul.” Kimmins went on to argue that “powering the UK with renewables could cut total system costs by around 50% by 2035, compared with a gas-based system.”
The Green Alliance, another advocacy group, has pinned the blame for rising electricity prices squarely on fossil fuels. Senior policy adviser Stuart Dossett told The National: “Renewable energy is our ticket to energy security. Energy bills are too high because electricity prices are set by the most expensive fuel – which is gas. The wholesale cost of gas and electricity under the price cap is over £400 more than in March 2021. That’s mainly because the price of gas spiked when Russia invaded Ukraine and it has begun to fall, but not to pre-crisis levels.” Dossett also highlighted that the UK is now the “most attractive market for energy investment in Europe, after France,” with investors committing nearly twice as much to clean energy as to fossil fuels in 2024.
Meanwhile, the government has responded to criticism over its initial decision to slash support for pensioners. After a significant U-turn, nine million pensioners in England and Wales with annual incomes of £35,000 or less will now receive their winter fuel payments in the coming weeks. This move comes as part of what the government describes as “urgent action” to support vulnerable families this winter.
For households on variable tariffs—the group most affected by the new price cap—the advice from both Ofgem and suppliers is to investigate whether switching to a fixed tariff could save them money. Ofgem’s cap sets the maximum price that can be charged for each unit of gas and electricity, but individual usage and tariff choices still play a significant role in determining final bills. The increase for October to December means that for every £100 previously spent on energy, households will now pay an extra £2.
Looking ahead, the political debate over the future of the UK’s energy system is set to intensify. Energy Secretary Ed Miliband is expected to announce a ban on fracking for natural gas at the Labour Party Conference, signaling a continued focus on clean energy investments. The government’s upcoming “home upgrade programme” aims to improve up to five million homes, making them cheaper and cleaner to run—a step that could help insulate more families from future price shocks.
As winter approaches, the question remains: will these measures be enough to help those most at risk, or will another year of high bills push even more households into fuel poverty? For now, millions are left hoping that promises made in Westminster translate into real relief at home.
