Energy bills are set to rise by £111 a year from April as the Ofgem price cap rises, prompting fury from campaigners.
Between April 1 and June 30 2025 the Ofgem energy price cap will be set at £1,849 per year for a typical household which uses electricity and gas and pay by Direct Debit.
This is an increase of 6.4% compared to the cap set between January 1 to March 31 2025 (£1,738) and means energy bills will rise by an average of £111 a year. The price cap is based on typical household energy use.
Energy Secretary Ed Miliband said the news was worrying for many families and said the government would be expanding the warm home discount.
He said: “This Government is determined to do everything we can to protect people from the grip of fossil fuel markets.
“Expanding the Warm Home Discount can help protect millions of families from rising energy bills, offering support to consumers across the country.”
But campaigners have reacted in anger to the news, saying it’ll put households under even more pressure.
The rise means the average household is paying £750 more per year for their energy compared to winter 2020/21 – a hike of 77%, according to the End Fuel Poverty Coalition.
The cost of every unit of gas used will surge by over 10%, meaning the cost of gas is now double what it was in winter 2020/21.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said Ofgem had included a clause that will allow energy suppliers to increase the profits made on every customer’s bill by 4.1% compared to the current quarter.
He said the wider energy industry has already made £483bn in profit over the course of the energy bills crisis.
“Taking into account price changes and government support over time, the total extra cost that the average household has had to find for their energy will reach £3,039 by the end of June 2025.”
Caroline Simpson, manager of the Warm This Winter campaign manager, said another price cap rise was devastating news.
She said: “Billpayers need to know it is caused because global gas prices are soaring due to factors outside of our control and profiteering energy giants such as Centrica and Norwegian-owned Equinor, the biggest supplier of gas to the UK, who make billions of pounds each year out of our misery.”
David Buttress, chief executive of Ovo Energy, called for a social tariff to help vulnerable customers. He said: “With bills rising again the Government, regulator, and energy companies must work together to introduce a social tariff to shield the most vulnerable from high prices.”
Steve Vaid, chief executive at the Money Advice Trust, the charity that runs National Debtline, said: “Anyone struggling with their energy bills, or worried about their finances, should contact a free debt advice charity, like National Debtline.”
Jonathan Brearley, chief executive of Ofgem chief executive, said: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households.
“But our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills, which is why it’s more important than ever that we’re driving forward investment in a cleaner, homegrown system.
“If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can. Where possible, switching or fixing tariffs now could also help to bring costs down and provide certainty over coming payments.”
Christians Against Poverty (CAP) said 21% of UK adults were already struggling to pay for essentials such as energy and food; and the lastest price cap was likely to tip even more families into debt.
CAP said research by Opinium revealed how 11.6 million people in the UK had a deficit budget, with one in every five UK adults not able to cover the costs of essentials.
It said the price increases may put young people at a higher risk as 89% reported struggling with the cost of living in January 2025, according to the Office for National Statistics.
Juliette Flach, policy and public affairs manager at CAP, said: “No one should be cold in the winter because they cannot afford to heat their home. No one should be caught in the vicious cycle of debt and poverty because their income does not cover the cost of the basic essentials we all need to survive. We must take action now.”
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