The price cap will rise by £63 in October, the third increase this year. But that is just the start. Analysts expect another jump in January 2025, pushing typical dual-fuel bills past £2,000 a year for the first time since the 2022 crisis.
As reported by Sky News, the surge reflects stubbornly high wholesale gas prices, rising network costs, and the phasing out of government support schemes. For a 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity, that means an extra £300–£500 a year, or £25–£42 a month.
Who pays, and who pays more
Households on standard variable tariffs will feel the full force. Prepayment meter customers, already paying more, face an even steeper climb. Ofgem data shows prepayment customers paid £80 more on average last year than direct debit users. The gap is widening.
But the pain is not uniform. Homes with an EPC rating of D or E, about 40% of UK housing stock, lose heat far faster than those rated C or above. A home rated E loses heat at roughly twice the rate of one rated C, according to Energy Saving Trust figures. That means every degree of thermostat increase costs more.
What this means for your EPC and your wallet
The cheapest kilowatt is the one you never use. Insulation, draught-proofing, and double glazing can cut heat loss by 30–50%. For a typical 3-bed semi, improving from an EPC D to C can reduce annual gas consumption by 2,000–3,000 kWh, saving £150–£250 at current prices. Add in a more efficient heating system, and the total saving can reach £400–£600 a year.
Yet the upfront cost deters many. Cavity wall insulation costs £1,000–£2,000 installed; loft insulation, £300–£600. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. The government’s own figures show only 20% of eligible homes have applied.
But the catch is timing. Installers are booked weeks ahead, and demand spikes every autumn. Households that act now, before the January price cap rise, will lock in savings before the worst of the winter bills arrive.
What you can do now, and by when
First, check your EPC. If it is D or below, prioritise the cheapest insulation measures: loft top-up, draught-proofing, and radiator reflector panels. These cost under £500 combined and can pay back within two winters.
Second, compare tariffs. The price cap is the default, not the cheapest. A fixed-rate deal can save £100–£200 a year, though fewer are available now than in 2023. Use Ofgem’s accredited comparison sites to check.
Third, apply for grants. The Great British Insulation Scheme and the Energy Company Obligation (ECO4) are open now. Eligibility depends on income, benefits receipt, and property type. Applications can take 6–8 weeks, so start today.
Households on standard variable tariffs can apply through gov.uk from 4 November. Eligibility closes on 31 March 2027. The surge is coming, but the right upgrades now can blunt its edge.
Frequently Asked Questions
Yes, analysts expect the price cap to rise again in January 2025, possibly by another £100–£150 for typical dual-fuel households. Ofgem will announce the new level in late November 2024.
Improving from EPC D to C typically saves £400–£600 a year on energy bills, depending on property size and current heating system. The biggest savings come from insulation and draught-proofing.
