The energy price cap is set to fall by about £63 in October 2024, the third drop in a year. Yet Martin Lewis, founder of MoneySavingExpert, has warned that many households will still struggle, as reported by Wales Online. The catch is that standing charges, the fixed daily fee every household pays, are rising, and suppliers are recovering billions in bad debt from the energy crisis.
What the price cap fall actually means for your bill
Ofgem will confirm the new cap on 27 August, with the reduction taking effect from 1 October. For a typical household using 12,000 kWh of gas and 2,900 kWh of electricity, the annual bill is expected to drop from £1,723 to around £1,660. That is a welcome cut, but still 30% higher than pre-crisis levels in 2021.
But the headline figure masks a grim reality. Standing charges have risen by 40% since 2021, from about 45p a day to 63p for electricity and 31p for gas. That adds £340 a year before you use a single kWh. Lewis has pointed out that these fixed costs mean households with low usage, pensioners, single occupants, those in well-insulated flats, see little benefit from a cap fall.
Why Martin Lewis says efficiency matters more than waiting
Lewis’s warning is blunt: “Don’t just sit and wait for the cap to fall. You need to cut how much you use.” His advice aligns with what we tell homeowners at Axiom every week. The quickest way to reduce your bill is to stop heat leaking out of your home. Loft insulation costs £300–£500 for a typical 3-bed semi and can save £200 a year. Cavity wall insulation runs £500–£1,000 and saves £250 annually. The Great British Insulation Scheme offers grants covering up to 100% of the cost for eligible households.
Yet take-up remains low. The government’s own data shows only 150,000 homes have been upgraded under the scheme since its launch in 2023, against a target of 300,000. That is a missed opportunity for millions of homes with EPC ratings of D or below.
What this means for your EPC rating and resale value
Every £100 saved on annual energy bills adds roughly £1,500 to a home’s market value, according to Nationwide. A home moving from EPC band D to C, achievable with loft insulation, cavity wall fill, and a smart thermostat, can see a 5% price uplift. With the average UK home now worth £285,000, that is over £14,000.
But the bigger prize is protection from future price shocks. The energy price cap is a political and regulatory construct. It will rise again when wholesale prices spike, as they did in 2022. The only permanent defence is a home that needs less energy to heat and power.
Three actions to take before October
First, check your EPC rating via gov.uk. If it is D or below, contact the Energy Saving Trust for grant eligibility. Second, install a smart thermostat, a Hive or Nest costs £150–£250 and can cut heating bills by 15% by optimising schedules. Third, compare tariffs. While the price cap sets a maximum, some fixed deals are now cheaper than the cap. Use a comparison site like uSwitch or MoneySavingExpert’s Cheap Energy Club.
Martin Lewis is right: the cap fall is not a rescue. It is a pause. Homeowners who act now will be warmer next winter and richer in the long run. Those who wait for the next crisis will be caught again.
Frequently Asked Questions
The cap is expected to fall by about £63 to £1,660 for a typical household, but standing charges are rising, so the actual reduction may be smaller. Households with low energy use may see little change.
Improve home efficiency with loft insulation, cavity wall insulation, and a smart thermostat. These measures can cut bills by 20-30% and often qualify for government grants like the Great British Insulation Scheme.
