The energy price cap rose by 2% on 1 October 2025, taking the average annual bill for a typical household from £1,720 to £1,755 for the period from 1 October to 31 December1. The next change takes effect on 1 January 2026, and the level will be announced by 25 November1. Neither source states what that level will be.
The cap is a national average setting the highest price a supplier can charge, and it varies slightly by region and payment method2. For the Midlands, Act on Energy set out the capped rates by payment type from 1 October2:
| Payment method | Electricity unit rate | Gas unit rate | Dual fuel standing charge per day |
|---|---|---|---|
| Direct debit | 25.64p | 6.21p | 87.52p |
| Pre-payment meter | 24.86p | 5.97p | 87.52p |
| On receipt of bill | 27.05p | 6.54p | 102.83p |
Direct debit and pre-payment standing charges are capped at 53p for electricity and 34.05p for gas, more than 6.5p a day higher than the previous cap2. On receipt of bill, standing charges are 61.07p for electricity and 41.76p for gas, taking dual fuel households above £1 a day and leaving them paying over £14 more on standing charge across the three-month period than direct debit customers2. Electricity unit rates rose for all payment methods, while gas unit rates fell slightly2.
The cap applies to standard variable tariffs, and suppliers tend to price these at or near the cap limit, so bills on those tariffs rose by around 2% for this period1. The advertised figure is not a cap on a household's bill: it is based on a medium-sized household using 2,700 kWh of electricity and 11,500 kWh of gas a year, and households using more pay more1. The October 2025 cap is also higher than October 2024, when the average annual bill was £1,7172.
"The next cap will be announced by 25 November to come into effect on 1 January"
Why it matters for households
The cap sets the ceiling on unit rates and standing charges for households on a standard variable tariff, so a change in the cap changes what those homes pay per unit of energy used, not a fixed total. Because the standing charge is a daily amount, it is paid regardless of how much energy a home uses, which matters most for low-usage households. The winter months carry heavier usage, so monthly bills rise with the weather even when the cap itself is unchanged2. For a household's energy independence, the practical levers are how much energy it uses and which tariff it is on: the cap is the default position, and fixed deals priced below it have been available1. The typical household figure is a modelled average, not a prediction for any individual home.
What happens next
The next cap level will be announced by 25 November 2025 and take effect on 1 January 20261. Uswitch said at the start of October that it did not know whether the next cap would rise or fall, and that there was no suggestion at that point of a big increase or decrease1. Act on Energy notes the change due on 1 January2. No figure for the January cap has been reported.
The price cap history sets out every level since 2019 and the announcement dates, and the full guide to energy bills and the price cap explains how the cap is applied. How the default tariff cap is set is covered in the energy price cap, and the notice a supplier must give before a price rise is set out in supplier notice before a price rise.
Sources2 cited
- Energy price cap comes into effect today: here’s what it means for your bills - Uswitch, uswitch.com
- [](https://www.actonenergy.org.uk/news/october-2025-price-cap), actonenergy.org.uk