UK households are bracing themselves for even higher bills this spring and throughout the year so it’s worth checking now if you are someone who doesn’t have to pay one of the increases. The New Year is a time of change for many and unfortunately that includes household bills, which are set to rise in 2025. The Ofgem price cap increased on January 1 by 1.2 per cent to £1,738 per year. It is updated every three months and is expected to rise even further in the months ahead.
On April 1, July 1, and October 1, households will see a change in their energy bills. These caps are usually determined 4-5 weeks beforehand and can be found on the Ofgem website, with April’s announcement to be expected from the last week of February.
The price cap is used to show how much a typical family with a dual fuel tariff who pays via direct debit could expect to spend on their energy bill each year. But the exact amount you will pay each month will depend on your usage and can be higher or lower than the cap.
In addition to energy hikes there will also be an increase for the majority of households to their water and sewage bills. Industry regulator Ofwat announced in December last year that there will be an average rise of £157 for the majority of homes over the next five years. This is partly due to a £104 billion upgrade which it said would provide "substantial, lasting, improvements for customers and the environment".
The announcement sparked anger from consumer groups who highlighted many water companies’ awful records on sewage spills and water leaks. The Government announced plans to reform the sector and said that it will force water firms to increase the compensation offered to households for problems such as internal sewage flooding and low water pressure but these changes aren’t expected to happen until next year. Unlike with energy providers, householders are locked into paying for water from the companies that supply your local area so you can’t switch if you are unhappy with their service or price. However, there is a way you could get your bill capped if you meet the criteria.
