Energy regulator Ofgem says the energy costs are rising because transporting energy has become more expensive, and because the government needs to cover the cost of its energy policies.
Those policies include providing extra financial support for people on benefits, as well as the cost of switching generators, such as windfarms, on and off – to maintain overall supply and demand.
Policies in place to help those struggling with bills include the Warm Home Discount, external scheme, which offers low-income households, and those vulnerable to cold-related illness, a one-off energy bill rebate of £150.
The scheme reopens in October 2025, with electricity suppliers applying the discount directly to bills of those eligible, which usually happens automatically.
Those on a pre-pay, or pay-as-you-go, electricity meter can also get the discount if they are eligible – for example via a voucher to top up the meter.
Older people will receive a winter fuel payment, external to help pay for heating bills. Individuals of state pension age, up to 79 years old, who are not living with another eligible person, will receive £200, while single householders aged 80 or older receive £300.
Only pensioners with an annual income of £35,000 or less will be eligible for the payment. They will receive a letter to say how much they will receive in October or November, with payment due in November or December.
A Cold Weather Payment, external, helps people on certain benefits if the temperature drops to, or below zero, for seven consecutive days. Those eligible will get £25 for each 7-day period of very cold weather between 1 November 2025 and 31 March 2026.
The energy price cap – how much an energy supplier can charge for each unit of energy, and for connecting customers to a gas and electricity supply – is reviewed every three months.
The current charges are in place until January.
