The End Fuel Poverty Coalition has reported that energy bills will rise 13.5% this summer, pushing typical annual costs past £1,800 for the first time since 2023. That is not a forecast, it is a fact, confirmed by Ofgem’s latest price cap adjustment and wholesale market data. For a household already spending £1,600 a year on gas and electricity, this means an extra £180 on the annual bill, starting in July.
As reported by the End Fuel Poverty Coalition, the rise comes at the worst possible time, summer, when households are already stretched by higher food and transport costs. But the coalition warns that winter will be harder, with average bills potentially exceeding £2,000 if wholesale prices climb further.
Why the rise is happening, and what it means for your bill
Ofgem raised the price cap to £1,738 per year for a typical dual-fuel household on direct debit, up from £1,568 in the previous quarter. That 13.5% jump is the largest single increase since the 2022 energy crisis. The drivers are straightforward: wholesale gas prices have risen 18% since March, and network charges, the cost of pipes, wires, and balancing the grid, are up 8%.
But the headline figure masks regional variation. Households in the North East and Scotland face higher network charges, adding £30–£50 more than the national average. Those on prepayment meters pay even more, about £2,100 a year, according to Citizens Advice data. The catch is that the price cap does not cover standing charges, which have risen 12% in the same period, eating into any savings from reduced usage.
What this means for your EPC rating and home value
Energy Performance Certificate ratings are directly tied to estimated energy costs. A home with an EPC rating of D typically costs £1,900–£2,200 a year to heat and power. With the new cap, that figure rises to £2,100–£2,500. This matters because buyers increasingly factor energy costs into offers, a 2024 survey by Nationwide found that 72% of homebuyers would pay more for a home with an EPC rating of C or above.
Improving your EPC rating from D to C typically requires loft insulation (costing £300–£600, saving £200–£300 annually), cavity wall insulation (£500–£1,000, saving £150–£250), and draught-proofing (£100–£200, saving £40–£60). These upgrades pay back in two to four years, and many are eligible for the Great British Insulation Scheme, which offers partial grants for low-income households.
Practical upgrades that cut bills now
The quickest fix is a smart thermostat. Installing one costs £120–£250 and can reduce heating bills by 10–15%, according to Energy Saving Trust data. For gas-heated homes, a heat pump is the longer-term solution: the Boiler Upgrade Scheme offers £7,500 towards an air-source heat pump, which can cut annual heating costs by 30–40% compared to a gas boiler.
Solar panels remain the best investment for electricity bills. A typical 4kW system costs £5,000–£7,000 and generates about 3,500 kWh per year, saving £500–£700 annually at current rates. With the Smart Export Guarantee, households earn 15p per kWh exported, adding £100–£150 more. The payback period is 10–12 years, but with bills rising 13.5%, that timeline shortens to 8–10 years.
But there is a catch: installation delays. The heat pump market is growing at 25% annually, but skilled installers are scarce. The Solar Energy UK trade body estimates a 12-week waiting list for solar panels in the South West. Homeowners who act now, before the winter demand spike, will secure installation slots and avoid the January rush.
Who qualifies for help, and who does not
The government’s Warm Home Discount provides £150 off electricity bills for low-income households, but eligibility is limited to those on means-tested benefits. The Energy Company Obligation (ECO4) scheme funds insulation and heating upgrades for the same group, but only 60% of eligible households have claimed it, according to Ofgem data.
For the rest, the 40% of households just above the benefit threshold, there is no direct support. The End Fuel Poverty Coalition’s report highlights this gap: 6.3 million UK households are in fuel poverty, defined as spending more than 10% of income on energy. With the 13.5% rise, that number could hit 7 million by October.
Households on standard variable tariffs should contact their supplier to check for social tariffs or payment plans. Switching to a fixed-rate tariff is rarely advisable now, fixed deals are 20–30% above the cap. Instead, focus on reducing consumption through the upgrades listed above. The Energy Saving Trust’s home energy check tool (free at gov.uk) can identify the most cost-effective measures for your home.
Frequently Asked Questions
Indirectly, yes. EPC ratings are calculated using estimated energy costs based on a property's efficiency. Higher energy prices mean your home's running costs increase, which can lower the EPC score if you do not upgrade insulation or heating. Improving your EPC from D to C can offset the rise and increase home value by 5–10%.
Loft insulation and draught-proofing are the quickest, cheapest upgrades. Loft insulation costs £300–£600 and can save £200–£300 a year, paying back in under two years. A smart thermostat costs £120–£250 and saves 10–15% on heating. Both can be installed within a week.
