UK Energy Price Cap Rise: April 2025
The UK energy price cap will rise by 6.4% from 1st April 2025, increasing average energy bills to £1,849 for typical dual-fuel households paying by direct debit. This marks the third consecutive quarterly rise, driven by increased wholesale energy prices. Source: Ofgem
Energy Price Cap Trends (2023–2025)
| Quarter | Cap (£/year) | Change |
|---|---|---|
| Jul – Sept 2023 | £1,976 | -21% |
| Oct – Dec 2023 | £1,834 | -7.2% |
| Jan – Mar 2024 | £1,928 | +5.1% |
| Apr – Jun 2024 | £1,690 | -12.3% |
| Jul – Sept 2024 | £1,568 | -7.2% |
| Oct – Dec 2024 | £1,717 | +9.5% |
| Jan – Mar 2025 | £1,738 | +1.2% |
| Apr – Jun 2025 | £1,849 | +6.4% |
After hitting record highs in 2022, the energy price cap declined throughout 2023 and mid-2024 but has started to rise again due to global market pressures. Although current prices are lower than 2022 peaks, they remain 43% higher than pre-crisis levels in winter 2021/22.
Source: House of Commons Library
Impact on UK Households
For the average UK family, the April 2025 cap will mean an extra £111 per year, or roughly £9.25 per month. Electricity now costs ~27p/kWh and gas ~7p/kWh, with daily standing charges averaging 53.8p (electricity) and 32.7p (gas).
Source: Uswitch
Regional Impacts
- Northern Scotland: ~£1,850/year – highest rates due to delivery costs
- South Wales: ~£1,830/year
- London: ~£1,700/year – among the lowest due to lower standing charges
Impact by Income Level
Lower-income households are most affected. Those in the bottom 10% spend around 9.7% of their income on energy, compared to only 4.7% for the top 10%. An estimated 3.17 million households in England are in fuel poverty.
Source: UK Government Fuel Poverty Statistics
How to Reduce Energy Costs
The best long-term solution for reducing energy bills is improving energy efficiency. Government schemes like ECO4 and the Great British Insulation Scheme offer fully-funded improvements to eligible homes. These include insulation, heating upgrades, and even solar panel installations.
About ECO4
The ECO4 scheme is open until March 2026 and targets low-income or fuel-poor households, especially those living in energy-inefficient homes (EPC rating D–G). Eligible residents can apply for free home upgrades through providers such as UK Energy Management (UKEM).
Source: Ofgem ECO4 Guidance
- Loft insulation: save up to £215/year
- Cavity wall insulation: £180–£240/year
- Solid wall insulation: £115–£415/year
- Heating system upgrades: £200–£300/year
- Combined savings from multiple measures: up to £2,800/year
The April 2025 energy price cap rise adds to the pressure on families already dealing with a high cost of living. However, help is available. Upgrading your home’s energy efficiency with ECO4 can not only cut bills by hundreds each year but also provide comfort and protection from future price spikes.
Visit ukem.co.uk to check your eligibility and apply today.
