Energy bills rise 13%: the one check every UK homeowner must make today

The price cap will rise by 13% in October, the third increase in 18 months. Ofgem confirmed the new level at £1,923 a year for a typical dual-fuel household paying by direct debit. That is £149 more than the current cap, and £600 more than two years ago.

As reported by the Manchester Evening News, energy analysts expect the cap to stay above £1,800 through next winter. For the 4.5 million households on prepayment meters, the increase will hit even harder, they already pay roughly £50 more per year than direct debit customers.

Why your EPC rating matters more than ever

Every £1 increase in the unit price of gas or electricity multiplies the penalty for a draughty home. A typical band D property uses about 12,000 kWh of gas and 2,900 kWh of electricity per year. At the new cap, that is roughly £1,923. A band C home using the same square footage typically burns 15–20% less gas, saving £250–£300 annually without changing behaviour.

The Energy Saving Trust estimates that topping up loft insulation to 270mm costs about £300–£400 for a DIY install in a 3-bed semi. The payback period at current prices is under two years. Cavity wall insulation, where suitable, costs £500–£1,000 professionally and saves £200–£300 a year. Both measures are eligible for the Great British Insulation Scheme, which covers up to 100% of costs for low-income households.

What the 13% rise means for your upgrade timeline

The catch is that most homeowners wait until prices force them to act. Ofgem data shows that 60% of households on standard variable tariffs have never switched supplier. The same inertia applies to upgrades: only 1.2 million homes have had cavity wall insulation installed since the Green Deal launched in 2013, out of an estimated 8 million suitable properties.

But the math has changed. A heat pump, for example, costs £7,000–£13,000 installed after the Boiler Upgrade Scheme grant of £7,500. At the old price cap, the annual saving over a gas boiler was about £200–£300. At the new cap, that saving rises to £300–£400, shortening the payback period from 25 years to roughly 18. That is still long, but the gap narrows every time the cap rises.

Solar panels tell a similar story. A 4 kW system costs about £6,000–£7,000 and generates roughly 3,400 kWh per year. At the current export rate of 15p/kWh (Smart Export Guarantee), a household saves about £500–£600 annually. At the new cap, the same system saves £550–£650. The payback period drops from 12 years to 10.

The one check you should do today

Go to gov.uk/find-energy-certificate and enter your postcode. Your EPC will show your current rating, estimated energy costs, and a list of recommended improvements with typical costs and savings. The recommendations are not always perfect, they favour loft insulation over draught-proofing, for instance, but they give you a ranked list of what to tackle first.

If your EPC is below band C, check whether you qualify for the Great British Insulation Scheme (income-based) or the Boiler Upgrade Scheme (all households). Both are open now. Applications for the former close when the allocated £1 billion runs out, which the government expects in late 2025.

Households on standard variable tariffs should also compare fixed deals on Ofgem’s accredited comparison sites. Fixed tariffs are currently 5–10% below the cap. Switching takes 15 minutes and locks in a lower rate for 12 months.

The 13% rise is not the last. Analysts at Cornwall Insight predict the cap will stay above £1,800 until at least 2026. The only hedge is to reduce consumption, and the cheapest way to do that is to start with the free EPC check today.