- Ofgem’s price cap for an average household paying by direct debit will be £1,755 from October, up slightly from the current level (set in July) of £1,720 and up substantially from the level at the time of the 2024 general election of £1,568
- This means average household energy bills will have risen by 10% at July’s level and 12% by October’s. This is far outpacing wage growth, which was just 5% in the year to June
- The Department for Energy Security and Net Zero has recently raised the maximum prices it will pay for offshore wind power in its upcoming ‘Contracts for Difference’ auction, a worrying sign after the cancellation of the major Hornsea 4 wind farm
Responding to Ofgem’s latest price cap announcement, CPS Head of Energy & Environment Dillon Smith said:
‘These depressing numbers will provide little comfort to households up and down the country struggling to pay their energy bills. Labour promised to cut bills, yet since taking office Ofgem’s price cap for the average household had already risen from £1,568 to £1,720 today, and is now set to rise to £1,755 from October, substantially outpacing wage growth and leaving households poorer.
‘Undoubtedly, many factors are outside the Government’s control, such as international gas prices. But what’s maddening is that Labour’s rush to hit their 2030 clean power target risks pushing bills even higher.
‘Setting a hugely ambitious goal with very little time to meet it, at a time of supply chain pressures and high interest rates is a recipe for higher bills, not lower ones. The next round of government auctions for renewable energy contracts will be crucial, and the recent move to raise the prices the Government is willing to pay for offshore wind is a worrying sign. If the Government gets this wrong, consumers will be locked into yet higher prices for years to come.’
ENDS
NOTES TO EDITORS
- Wage growth figures via the ONS, average weekly earnings June 2024 to June 2025 (latest data available)
- Dillon Smith is Head of Head of Energy & Environment at the Centre for Policy Studies
- For further information and media requests, please contact Melisa Tourt on 07399 251110 and [email protected]
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, housing, immigration, and energy abundance, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Wednesday 27th August 2025
