Understanding the October 2025 Energy Price Cap Rise – What it Means for UK Households

From 1st October 2025, Ofgem will increase the energy price cap by 2%, raising the average annual bill for a typical dual-fuel household paying by Direct Debit to £1,755.

While this represents a modest monthly increase of £2.93, it’s a timely reminder (if the signs of Autumn and dropping temperatures weren't enough) of the importance of energy efficiency - both for cost saving and environmental impact.

At Wiser, we understand that even small changes in energy pricing can cause a ripple effect for household budgets. That’s why we’re committed to helping homeowners make smarter heating choices that reduce energy consumption and improve comfort.

 

Why is the Energy Price Cap Rising?

The increase is driven by a combination of factors, including higher electricity balancing costs and expanded government schemes like the Warm Home Discount 

Network and policy costs have also risen, contributing to the overall adjustment. Despite this, the cap remains £625 lower than its peak in early 2023, reflecting a stabilising energy market 

 

What Does This Mean for UK Billpayers?

Although the 2% rise is below current inflation levels, many households may still feel the pinch. Ofgem encourages consumers to explore fixed tariffs, which could offer savings of over £200 compared to the new cap 

Additionally, switching from standard credit to Direct Debit could save households around £135.60 annually.

 

How Drayton Can Help

With heating accounting for over 60% of household energy use, upgrading to smart heating controls like Wiser can make a significant difference. By enabling zoned heating, remote scheduling, and energy insights, Wiser helps users cut waste and optimise comfort - especially as we head into the colder months.

For installers, this is an ideal time to speak with customers about the benefits of smart controls. Not only do they offer long-term savings, but they also future-proof homes for upcoming energy efficiency standards.

 

Looking Ahead

The next price cap review is due in November, covering January to March 2026. While prices may continue to fluctuate, one thing remains constant: the value of energy-efficient solutions. At Drayton, we’re here to support both professionals and homeowners in navigating these changes with confidence.