“Energy bills soared under the Conservatives"
UK households will see energy bills rise by £35 from October after Ofgem confirmed a 2% increase in the price cap.
This means average annual bills will rise from £1,720 to £1,755. The rise reverses earlier forecasts that bills would fall by a similar amount in October.
In July 2025, bills dropped by around 7% from the April to June level, driven by falling wholesale costs and lower supplier charges.
This time, part of the increase is linked to the expansion of the Warm Home Discount scheme, which adds around £15 to bills. The scheme will also give £150 in support to 2.7 million more people.
Wholesale energy prices remain unstable, with global political tensions and uncertainty over US trade policy keeping costs volatile.
The cap peaked in early 2023 at £4,279 after soaring in 2022 due to post-Covid demand, tight gas supply and the war in Ukraine. It later dropped to £2,074 and has since stayed between £1,568 and £1,928.
Campaigners say many households are still struggling to pay off debts built up during that period.
Ofgem director general Tim Jarvis said: “While there is still more to do, we are seeing signs of a healthier market.
“There are more people on fixed tariffs saving themselves money, switching is rising as options for consumers increase, and we’ve seen increases in customer satisfaction, alongside a reduction in complaints.
“While today’s change is below inflation, we know customers might not be feeling it in their pockets.
“There are things you can do though – consider a fixed tariff as this could save more than £200 against the new cap. Paying by direct debit or smart pay-as-you-go could also save you money.”
Labour criticised the legacy of Conservative energy policy, linking high bills to reliance on overseas fossil fuels.
A spokesperson said: “Energy bills soared under the Conservatives because they tied our country to the fossil fuel rollercoaster and working people are still paying the price.
“From banning onshore wind to failing to deliver new nuclear, their reckless decisions left Britain exposed to wholesale gas prices.
“That’s why Nigel Farage’s unpatriotic war on clean energy would be a total disaster for families, businesses and our economy.
“His destructive plans would push bills higher, kill nearly a million jobs and scrap billions of pounds of vital investment across the country that will strengthen our energy security.”
Experts at Cornwall Insight forecast a small drop in bills for January 2026, though they warned that it will depend on wholesale markets, weather and the autumn Budget.
Mr Jarvis added: “In the longer term, we will continue to see fluctuations in our energy prices until we are insulated from volatile international gas markets.
“That’s why we continue to work with government and the sector to diversify our energy mix to reduce the reliance on markets we do not control.”
Energy minister Michael Shanks said:
“We know that any price rise is a concern for families.”
“Wholesale gas prices remain 75% above their levels before Russia invaded Ukraine. That is the fossil fuel penalty being paid by families, businesses and our economy.
“That is why the only answer for Britain is this government’s mission to get us off the rollercoaster of fossil fuel prices and onto clean, homegrown power we control, to bring down bills for good.”
Ofgem reviews the price cap every three months. The next announcement is due on November 25 and will cover bills from January to March 2026.
The cap limits the maximum unit price suppliers can charge households in England, Scotland and Wales. It is not a cap on total bills, which depend on household energy use. Actual rates vary by region, meter type and payment method.
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