The price cap will rise by £190 in October, the third increase this year. Ofgem confirmed the figure on Friday, pushing a typical dual-fuel household’s annual bill to £1,928. That is £190 more than the current cap of £1,738 and £600 above pre-crisis levels.
As reported by Chronicle Live, the rise reflects higher wholesale gas prices and increased network costs. For homeowners already struggling with mortgage rates and food inflation, this is another squeeze.
Who qualifies, and who doesn’t
The price cap applies to households on standard variable tariffs, about 28 million homes across England, Wales, and Scotland. Those on fixed-term deals are shielded until their contract ends. Ofgem also confirmed that prepayment meter customers will see a similar £190 increase, though their cap is slightly lower at £1,922. The cap does not limit total bills; it caps unit rates and standing charges. A household using 14,000 kWh of gas and 4,000 kWh of electricity, typical for a larger semi, will pay more than the headline figure.
What it costs a typical 3-bed semi
For a 3-bed semi using 12,000 kWh of gas and 3,000 kWh of electricity, the rise means roughly an extra £16 a month. Standing charges alone, the daily fee just for being connected, will rise to 60p per day for electricity and 31p for gas, according to Ofgem data. That is up from 53p and 28p in 2023. The Energy Saving Trust estimates that draught-proofing and loft insulation (top-up from 100mm to 270mm) can cut annual bills by £60–£80. Combined with a smart thermostat, savings can reach £150 a year.
Yet the catch is that many homes still lack basic measures. Government figures show 8 million homes in England have an EPC rating of D or below. Each step up the EPC scale, from D to C, for example, saves roughly £200–£300 annually. The Great British Insulation Scheme offers free or subsidised cavity wall and loft insulation for low-income households, but uptake has been slow.
Grants and upgrades that actually work
Homeowners looking to offset the £190 rise have options. The Boiler Upgrade Scheme provides £7,500 off air-source heat pumps, though installation costs still run £10,000–£15,000. Solar panels and batteries cost £7,000–£10,000 but can cut electricity bills by 60–70%. The Smart Export Guarantee pays households 5–15p per kWh for surplus solar power exported to the grid. For those on a budget, LED bulbs and a smart meter cost under £50 and save £35–£50 a year, according to the Energy Saving Trust.
But grants are not infinite. The Boiler Upgrade Scheme budget runs until 2028, but applications are processed on a first-come, first-served basis. The Great British Insulation Scheme closed to new applications in some regions last month. Homeowners should check eligibility on gov.uk now, not wait for winter.
What happens next
Ofgem will announce the January 2025 cap in November. Analysts at Cornwall Insight predict a further 5% increase to £2,020. The government’s Warm Home Discount scheme will provide £150 to low-income households this winter, but that covers less than half the price cap rise. The real fix, reducing energy demand through fabric-first upgrades, remains the only structural solution.
Households on standard variable tariffs can apply for the Warm Home Discount through gov.uk from 1 October. Eligibility closes on 31 March 2025. For those able to invest, the Boiler Upgrade Scheme and Smart Export Guarantee offer immediate returns. Check your EPC rating online at epcregister.com and book a free home energy assessment through the Energy Saving Trust. The £190 rise is painful, but it can be a catalyst for change.
Frequently Asked Questions
No. If you are on a fixed-term energy deal, your rates are locked until the contract ends. Once it expires, you will move to the standard variable tariff and pay the capped rate.
Yes. The Great British Insulation Scheme offers free or subsidised insulation for eligible households. The Boiler Upgrade Scheme provides £7,500 off heat pump installations. Check your eligibility on gov.uk.
