Energy price cap explained: what it means for your bills this October Oct 01, 2025

What the price cap actually does

The price cap doesn’t put a limit on your whole bill. Instead, it sets the maximum that suppliers can charge for each unit of gas and electricity, and for the daily “standing charge” you pay just to stay connected. How much you use - heating, lights, hot water - is what makes the difference to your final bill.

The key numbers, made simple

• Before October (July - September 2025: a typical household paying by Direct Debit paid about £1,720 a year.
• From October (October - December 2025: that typical bill rises to about £1,755 a year — roughly a 2% increase.

Here’s what that looks like in everyday rates:

• Electricity: 26.35p per unit, with a daily standing charge of 53.68p
• Gas: 6.29p per unit, with a daily standing charge of 34.03p

These are national averages. The exact figures on your bill may be a little higher or lower depending on where you live and how you pay.

Why a 2% rise can feel bigger at home

A rise of 2% might sound small, but in winter households naturally use more energy. Heating is on for longer, lights go on earlier, and hot water is needed more often. And standing charges add up every single day, whether you’ve had the heating on or not. For families already stretched, this is the season when bills bite hardest.

What happens next

The new rates apply until 31 December 2025. From January, Ofgem will set new figures again. At the same time, suppliers will be required to offer at least one tariff with a lower daily standing charge. That could be good news for people who use very little energy, like those living alone or away from home a lot. But for families who use more, these tariffs may not work out cheaper, because the unit prices will be higher.

What you can do now

It’s worth sending in a meter reading if you don’t have a smart meter. That way the energy you’ve already used will be charged at the old rates. It’s also a good moment to check what tariff you’re on, and to make small changes that help over time - draught-proofing, switching things off properly instead of leaving them on standby and using heating controls wisely.

How YES Energy Solutions can help

We know how worrying energy costs can feel, especially for families. We’re here to help you make sense of things and to help you find practical ways to save. That might mean clear advice on your bill, guidance on choosing the right tariff, support to access funding for insulation or heating upgrades, or just sharing straightforward tips that make your home warmer and more affordable.

The October rise is smaller than some of the steep jumps we’ve seen in recent years, but it still matters with winter on the way. Whether you’re heating a busy home with children, managing a household on your own, or caring for someone who needs the warmth, every pound counts. Taking a few steps now can ease the strain - and if you’re feeling unsure about what’s best for you, remember you don’t have to face it alone. YES Energy Solutions is here to support you.

Call us on 03301 359 110 for support today.

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