What is the energy price cap and how much are gas and electricity bills going up?

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Gas and electricity prices will rise by 10% in England, Scotland and Wales on Tuesday, 1 October.

Under the new energy price cap, the typical annual dual-fuel bill paid by direct debit will be £1,717 per year.

Despite the increase, around 10 million pensioners will no longer get winter fuel payments to help them with bills at the coldest time of year.

What is the energy price cap and how is it changing?

The energy price cap covers 28 million households in England, Wales and Scotland and is set every three months, external by the energy regulator Ofgem.

It fixes the maximum price that can be charged for each unit of energy on a standard - or default - tariff for a typical dual-fuel household which pays by direct debit.

Between 1 October and 31 December, gas prices will be capped at 6.24p per kilowatt hour (kWh), and electricity at 24.50p per kWh.

That means a dual-fuel direct debit household using a typical amount of energy, external will pay £1,717 per year, a rise of £149.

Those who pay their bills every three months by cash or cheque will pay £1,829.

The economic forecaster Cornwall Insight, which tracks the energy market, has suggested prices could rise again in January, due to of rising wholesale costs paid by suppliers.

The cap does not apply in Northern Ireland, which has its own energy market.

What is a typical household?

Your energy bill depends on the overall amount of gas and electricity you use, and how you pay for it.

The type of property you live in, how energy efficient it is, and how many people live there, are also relevant.

The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, which they settle by direct debit.

The vast majority of people pay their bill this way to help spread payments across the year.

Those who pay every three months by cash and cheque are charged more.

In March, Ofgem said it was considering a range of options for changing the current energy cap system, including charging different prices throughout the day to reflect periods of high demand.

It has not yet published any conclusions.

What is happening to prepayment customers?

From 1 October, households on prepayment meters will pay slightly less than those on direct debit, with a typical bill of £1,669, a rise of £147.

About four million households had prepayment meters in April 2024, according to Ofgem.

Many have been in place for years, but some were installed more recently after customers struggled to pay higher bills.

New rules mean suppliers must give customers more opportunity to clear their debts before switching them to a meter, and they cannot be installed at all in certain households.

What are standing charges and how are they changing?

Although the overall cap has fallen since the highs seen in 2022-23, standing charges - a fixed daily amount which covers the costs of connecting to a supply - have not dropped.

These are typically 60p a day for electricity and 31p a day for gas, although they vary by region.

Campaigners, including the financial journalist Martin Lewis, have said these charges are unfair because they make up a disproportionately large part of the bill of low energy users.

Ofgem has outlined options to change the standing charge billing system and asked energy suppliers, consumer groups and household bill payers to give their views., external

This consultation closed on 20 September.

Separately, the regulator is also adding £28 to everyone's bill between April 2024 and March 2025 to cover the cost of dealing with £3.1bn of debt that customers owe to suppliers.

Should I fix my energy prices?

Fixed-priced deals offer certainty for a set period, but if prices drop, people could find themselves stuck at the higher price.

When considering fixed-price deals, Ofgem says people should seek independent advice and consider what is most important for them - the lowest price or the security of a fixed deal.

Price comparison website Uswitch warns customers to check whether fixed deals have exit fees before signing up and ensure they fully understand the terms of the contract.

They should also look closely at forecasts, to help decide whether a fixed deal makes sense.

What is happening to the winter fuel payment?

Changes to the winter fuel payment mean more than 10 million pensioners will not receive the money this winter.

Previously, it was paid to all pensioners to help with their energy bills during the coldest part of the year.

But in July, the government said future payments would be made only to those on low incomes who received certain benefits, including pension credit.

This year's payment - worth £200 or £300 depending on individual circumstances - will be paid automatically to eligible pensioners in November or December.

How much is the winter fuel payment and who can still get it?

What other help can I get with energy bills?

The £500m Household Support Fund,, external which was introduced in September 2021 to help vulnerable customers, had been due to end in autumn 2024.

However, Work and Pensions Secretary Liz Kendall has extended this until March 2025.

The Warm Home Discount scheme, external continues to offer a discount to eligible pensioners and low income households.

The government's Fuel Direct Scheme, external can help people to repay an energy debt directly from their benefit payments.

In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills.

Most suppliers also offer hardship grants.

What can I do if I can't pay my energy bill?

Ofgem: Help with bills, external