How to deal with the energy price cap rise

As soon as energy bills rise, it’s normal to feel anxious about how you might cover the extra costs – especially with the price of almost everything going up.

During these times, it’s important to know that you don’t have to struggle alone. The first thing to do if you’re worried about missing energy bill payments is to speak to your provider. They should be able to set up an affordable payment plan for you.

You can also get in touch with the free and independent support organisations listed here.

Outside of those, read on as we explore what the energy price cap is, why it’s going up, and the steps you can take to help manage the impact.

In this guide:

• What is the energy price cap?
• Why is the price cap rising?
• How this affects your bills
• Practical steps you can take
• Why this matters
• The bottom line

What is the energy price cap?

We have the energy price cap as a way of limiting how much suppliers can charge per unit of gas and electricity, as well as the maximum daily standing change. It’s set by Ofgem, the UK’s energy regulator, every three months. And you can see where the cap currently stands on Ofgem’s website here.

It doesn’t cap your total bill as that depends on how much energy you use. Instead, we have the price cap to protect households on standard variable tariffs from getting unfairly high energy bills.

Why is the price cap rising?

Ofgem reviews the price cap every three months, and it can go up or down depending on what’s happening in the wider energy market. Many different things can affect the market, including:

• The cost wholesale gas and electricity
• Demand vs. supply
• The impact of inflation
• Other economic/political pressures

All of these factors feed into the cap, which is why it doesn’t always stay the same. Right now, the balance of costs and demand means prices are heading upwards – and that’s what’s driving higher bills for households.

How this affects your bills

Unfortunately, when the price cap rises, most households will see an increase in their energy bills. And with winter coming, it can get harder and harder to justify keeping the heating off – especially if multiple people have access to the thermostat at home.

Keeping an eye on the thermostat might be an easier task than trying to control the price cap itself though. Due to so many global factors, it’s not something we can easily control. What we can do though is make sure we’re taking steps to reduce our bills.

We’ve got a full guide on how to reduce energy bills which includes advice on how to switch energy suppliers for a cheaper tariff or ways to be more energy efficient at home. You’d be surprised just how much small adjustments can reduce your bill by.

Practical steps you can take

Check your tariff

Take a moment to see what plan you’re on with your energy supplier. If you’re on a variable tariff, a fixed deal could sometimes work out cheaper and give you more certainty about what you’ll pay.

Keep an eye on usage

Although not to everyone’s taste, having a smart meter in your home is a great way to see how much you’re spending. From there, you can see what you’ve got running, at what times, and ultimately how much they’re costing you.

There’s also small tweaks you can make around the home such as switching to LED bulbs, blocking draughts, and only running your washing machine during off-peak hours. These cheaper hours are typically late at night and in the early morning but double check with your supplier.

Talk to your supplier

Speaking of suppliers, if you’re struggling to keep up with bills, make sure you speak to them as soon as possible. Don’t wait until they potentially spiral into bigger debts.

All suppliers should be able to help you with a payment plan at the very least. They might also have grants or hardship funds to give you some breathing room. Speak directly with your supplier to see exactly what support they can provide to you.

Review your budget

While it won’t reduce your energy bill, reviewing exactly where you’re spending your money might help you find a little which you can use towards the increased cost. For example, are there any subscriptions you’re not using which you can cancel? It might also be worth shopping around for a better broadband or car insurance deal.

For more on this cutting costs you can use towards your energy bills, read our guide on how to save money each month.

Check for extra support

You might be able to get help from government schemes, your local council, or energy charities. These can sometimes provide financial support or energy-saving help at home. Citizens Advice has a full list of what’s available here.

When to ask for help

If you feel you won’t be able to pay your bills, don’t wait. It’s best to speak with your energy provider now as they may be able to help you come to a payment plan. Beyond that there’s a range of support organisations who can provide free, impartial advice. They include:

• Citizens Advice
• MoneyHelper
• StepChange

Reaching out early means more options are open to you.

Why this matters

Energy bills aren’t just another line in your budget – they’re essential for keeping your home safe and comfortable. When prices go up, it can feel like you’ve lost control, especially if you’re already managing other rising costs.

That’s why knowing what the cap means, how it affects you, and what support is out there is so important. Understanding your options now can help you avoid nasty surprises later, keep your household on track, and give you more confidence when it comes to managing your money.

The bottom line

The energy price cap rise will affect most households, but there are steps you can take today to soften the impact.

Start by checking your tariff, monitoring your usage, and reaching out for help if you need it. A few small actions now could make a big difference later.