The average UK household paid £1,690 a year for gas and electricity in October 2024, 40% more than the £1,100 typical bill in winter 2020-21. That is not a return to normal. It is a new, higher baseline.
The House of Commons Library has published a detailed briefing on energy prices during and after the crisis, as reported by The House of Commons Library. The analysis confirms that wholesale costs have settled at roughly double the 2019 average, and network charges have risen 12% since 2021. For homeowners, the implication is stark: waiting for prices to fall back to pre-crisis levels is a bet the data says will not pay off.
What the numbers mean for your bill
Ofgem’s price cap for a typical dual-fuel household paying by direct debit stands at £1,690 from October to December 2024. That is down from the £2,500 peak in early 2023, but still £590 above the £1,100 cap in October 2021. The breakdown matters: unit rates for electricity are 24.5p/kWh and gas is 6.24p/kWh, roughly 50% and 80% higher respectively than in 2020.
Standing charges, which cover grid maintenance and social schemes, have risen to 60.99p/day for electricity and 31.66p/day for gas. That is nearly double the 2021 level of 25p and 27p combined. These fixed costs hit every household regardless of consumption. That makes them a regressive tax on low-energy users such as pensioners or small flats.
The catch is that no amount of insulation or solar panels can cut standing charges. Only regulatory reform, which the government has not committed to, can address that. What efficiency upgrades can reduce is the unit-rate portion, which still accounts for roughly 75% of the total bill.
EPC impact and upgrade economics
A home with an Energy Performance Certificate rating of D or below uses about 30% more energy than a C-rated property, according to Energy Saving Trust estimates. With current unit rates, that gap is worth roughly £300-£400 a year per band. Moving from an E to a C, achievable through loft insulation, cavity wall fill, and draught-proofing, can save a typical 3-bed semi around £600 annually.
The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. For those not eligible, a full loft insulation top-up to 270mm costs around £500 and pays back in under two years at current prices. Solar PV, at roughly £6,000 for a 4kW system, cuts annual electricity bills by £500-£600 and improves EPC by two bands on average.
Yet uptake remains low. Ofgem data shows only 38,000 heat pump installations in 2023 under the BUS, versus the government’s target of 600,000 a year by 2028. The gap is partly due to upfront cost and partly to confusion about running costs, which at current gas prices are roughly comparable, but will favour heat pumps as carbon pricing pushes gas higher.
Who qualifies, and who doesn’t
The House of Commons Library briefing notes that government support during the crisis, the Energy Price Guarantee and the £400 rebate, has ended. No new universal support is planned. Households on prepayment meters, who already pay more under the cap, face the highest effective costs. The Warm Home Discount of £150 is available only to those on means-tested benefits, leaving millions of low-income households just above the threshold with no help.
For homeowners considering upgrades, the key deadlines are approaching. The BUS is open until March 2025 but has limited annual funding. Glazing is standard-rated for VAT at 20%. The zero rate for energy-saving materials covers insulation, heat pumps and solar panels; HMRC names secondary and double glazing as excluded (VAT Notice 708/6). The Smart Export Guarantee pays for surplus solar power at 5-15p/kWh, but rates vary by supplier and are not guaranteed to rise with wholesale prices.
What this misses is the long-term risk of carbon pricing. The UK’s Emissions Trading Scheme will tighten the cap on gas emissions from 2027, pushing wholesale prices higher. The Committee on Climate Change projects a 20-30% real increase in gas costs by 2030. Homeowners who delay efficiency upgrades now will face higher future bills with fewer subsidy options.
What to do and by when
Check your EPC on gov.uk. If it is D or below, book a free assessment through the Energy Saving Trust. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. For heat pumps, get quotes from MCS-certified installers before the BUS budget runs out, typically by late summer. Solar panels should be ordered now for spring installation, as grid connection delays stretch to 12 weeks in some regions.
Frequently Asked Questions
The House of Commons Library data shows wholesale prices have stabilised at roughly double the 2019 average, and network charges continue rising. Most analysts, including Cornwall Insight, expect the price cap to remain above £1,600 until at least 2030. Carbon pricing will add further upward pressure from 2027.
No. Standing charges are set by Ofgem based on regional network costs and social schemes. All suppliers charge the same amount within each region. The only way to reduce them is to lobby your MP for regulatory reform, which the government has not yet proposed.
