The price cap will rise by £63 in October, the third increase this year. Now Ed Miliband is out as UK energy secretary, as reported by Recharge News. The timing could not be worse for households already squeezed by high energy costs.
Who takes over, and what changes
Miliband’s exit leaves a gap at the Department for Energy Security and Net Zero just as the government prepares its autumn fiscal statement. His replacement, likely from the same party but with a different mandate, will inherit a portfolio stuffed with live grenades: the energy price cap, the Boiler Upgrade Scheme, and the future of the Green Deal.
Ofgem confirmed to Reuters last week that the price cap will rise to £1,736 for a typical dual-fuel household paying by direct debit. That is £63 more than the current cap. Documents seen by The Guardian show a separate £180m underspend in the energy company obligation programme, which funds insulation and boiler upgrades for low-income homes. The new secretary will decide whether to redirect that money or let it lapse.
What it costs a typical 3-bed semi
A household using 12,000 kWh of gas and 2,900 kWh of electricity per year now faces an annual bill of roughly £1,736. That is up from £1,568 in January. The increase comes from higher wholesale gas prices and network charges, the latter rising by 12%, or about £24 a year on a typical bill.
But the bigger cost for homeowners is uncertainty. The Boiler Upgrade Scheme offers £7,500 off a heat pump installation, but its funding runs to 2028. A new secretary could extend it, cut it, or replace it with something else. The Energy Saving Trust says heat pumps can cut heating bills by 20-30% in a well-insulated home, but only if the policy framework stays stable.
The catch, policy whiplash
Yet the real risk is not a single policy change. It is whiplash. Since 2010, the UK has had six energy secretaries. Each one tweaked the green home grant programme. The Green Deal collapsed. The Renewable Heat Incentive was replaced. The Boiler Upgrade Scheme is the latest iteration, but it could be the next to be reshuffled.
What this misses is the effect on installer confidence. A contractor in Leeds told Axiom Eco Homes last month that he has stopped taking deposits for heat pump installations because he cannot guarantee the grant will still be there when the customer’s order arrives. That is a real cost to homeowners: fewer installers means higher quotes and longer wait times.
What homeowners can do now
Households on standard variable tariffs can lock in a fixed-rate deal through a comparison site today, but check the exit fees first. Those planning a heat pump or solar installation should apply for the Boiler Upgrade Scheme or Smart Export Guarantee now, before any new secretary reviews the rules. Eligibility for the Boiler Upgrade Scheme closes on 31 March 2028, but the budget could be capped earlier if demand surges.
For insulation, the Great British Insulation Scheme offers free or subsidised cavity wall and loft insulation for certain households. Check eligibility on gov.uk. The Energy Company Obligation also provides funding, but only if your home has an EPC rating of D or below and you claim certain benefits.
Frequently Asked Questions
Not immediately, but the new secretary could influence future Ofgem price cap decisions and green home subsidy programmes. Any changes to the Boiler Upgrade Scheme or ECO funding would affect installation costs and eligibility.
No, the Boiler Upgrade Scheme is currently funded until 2028, and applications are still open. Delaying could mean missing out on the £7,500 grant if the scheme is changed or capped. Apply now and secure your quote.
