From 1 December 2025 the UK home energy price cap is changing again. If you pay for gas or electricity by direct debit or prepayment, these changes will affect how much you pay for every unit you use.

On this page we explain what the December 2025 price cap change means for typical UK households, how it could impact your gas and electricity bills, and the practical steps you can take now to protect yourself from future price rises.

What is the Ofgem home energy price cap?

The Ofgem energy price cap is a limit on the unit rates and standing charges suppliers can charge households on a standard variable tariff in England, Scotland and Wales. It’s designed to ensure prices are fair and that loyal customers are not overcharged compared to new customers.

The cap is reviewed regularly and updated to reflect changes in the wholesale cost of gas and electricity, as well as network charges, policy costs and supplier operating costs.

• The cap applies to most homes on a standard variable or “default” tariff.
• It affects electricity-only, gas-only and dual fuel customers.
• It does not apply to fixed tariffs, smart or special tariffs, or business energy.

December 2025 price cap changes – what’s happening?

From 1 December 2025, Ofgem will update the domestic energy price cap again. This change comes at a time when wholesale energy markets remain volatile and households are still recovering from previous price shocks.

While the exact figures for December 2025 depend on the latest Ofgem announcement, there are a few important themes every household should understand:

1. Unit prices may move more than your standing charge. Even if daily standing charges stay broadly the same, small changes in unit rates add up over winter when usage is highest.
2. Direct debit and prepayment customers can see different caps. If you use a prepayment meter, your rates can differ slightly from those of direct-debit customers.
3. Your total bill depends on your usage. A “typical household” example is only a guide. If you use more energy than average, your bill will be higher, even under the cap.

For up-to-date unit rate and standing charge figures in your region, you should check directly with your supplier or use an Ofgem-approved comparison tool. Once you have the latest numbers, you can compare them to fixed deals that may be available now.

How the December 2025 cap could affect your bills

The impact of the December 2025 cap on your home energy bill will depend on:

• Your region in the UK (prices vary by area).
• Whether you’re on a standard variable tariff or a fixed deal.
• How you pay – for example, monthly direct debit vs prepayment meter.
• Your home’s size, insulation, heating system and energy habits.

Remember that winter is typically the most expensive time of year for energy. Even if the cap falls slightly, increased usage in December, January and February can mean your monthly payments still rise if your direct debit is being adjusted to catch up with previous underpayments.

Can you still save by switching from the price cap?

Yes. The price cap only applies to standard variable “default” tariffs. Many energy suppliers now offer fixed-rate tariffs that allow you to lock in your unit prices for a set period. If you choose the right fixed deal, you could:

• Protect yourself from future price cap increases.
• Gain visibility over your monthly outgoings.
• Potentially pay less than the future capped rate, especially if wholesale prices rise again.

However, if wholesale prices fall sharply, a fixed deal could end up slightly more expensive than the new capped rate. The right choice depends on your risk appetite and how important price certainty is to you.

Steps to take before the December 2025 cap change

To make the most of the December 2025 price cap update, UK households should consider the following steps:

1. Check your current tariff

Log in to your energy supplier account or look at your latest bill. Confirm whether you are on a standard variable tariff covered by the price cap or a fixed tariff:

• If you are on a default or SVT (standard variable tariff), your prices will change automatically in December 2025.
• If you are on a fixed tariff, your prices will not change until your fix ends, but your options for a new tariff may improve as suppliers respond to the new cap.

2. Submit a meter reading before prices change

Submitting an accurate meter reading just before the new price cap takes effect can help ensure you pay the correct rate for the units you use before and after the change. Smart meter users may have readings taken automatically, but it is still worth checking your account.

3. Compare fixed tariffs now

Suppliers often launch new fixed-rate tariffs in the lead-up to a price cap change. These deals can sometimes beat the future cap, particularly if the market expects prices to rise. Use a trusted comparison or advice service to see if a fixed tariff could save you money or offer better price certainty over the next 12–24 months.

4. Improve your home’s energy efficiency

Regardless of what the price cap does, the cheapest unit of energy is the one you don’t use. Simple measures can reduce your consumption and help offset price increases:

• Turn your thermostat down by 1°C.
• Use draught excluders and seal gaps around windows and doors.
• Fit LED bulbs and switch off appliances at the socket when not in use.
• Use smart thermostats and timers to heat only the rooms you need.

Who is protected by the home energy price cap?

The domestic price cap applies to most households in England, Scotland and Wales on standard variable tariffs. It does not apply to:

• Fixed-term or special-rate domestic tariffs.
• Business or commercial premises.
• Homes not directly connected to the gas or electricity grid (for example, where heating oil is used).

If you’re unsure whether you’re covered, contact your supplier or check the tariff information label on your bill for confirmation.

Frequently asked questions about the December 2025 cap

Does the price cap mean my bill can’t go above a certain amount?

No. The cap limits unit prices and standing charges, not your total bill. If you use a lot of energy, your bill can still be high.

Should I fix my energy prices before December 2025?

Fixing can make sense if you value certainty and want to protect yourself from potential future price rises. However, whether you will save money compared to staying on the capped rate depends on future market movements. Comparing a range of fixed deals, along with the latest price cap projections, can help you decide.

Will the December 2025 cap change again soon?

Ofgem reviews the price cap periodically. This means the rates set in December 2025 are not permanent. Future updates will continue to reflect wholesale costs, so it is worth reviewing your tariff regularly rather than assuming your current deal will always be the best option.

What if I’m struggling to pay my energy bills?

If you’re worried about your bills, speak to your supplier as soon as possible. They may offer payment plans, energy efficiency advice or access to hardship funds. You should also check if you’re eligible for support such as the Warm Home Discount, Winter Fuel Payment or other government schemes.

Plan ahead for the December 2025 energy price cap

The December 2025 UK home energy price cap change is another reminder that gas and electricity prices can move quickly. By understanding how the price cap works and taking simple steps to review your tariff and your usage, you can reduce the impact on your household budget.

Use the form on this page to request personalised help comparing tariffs and exploring options to stabilise or reduce your home energy costs throughout 2025 and beyond.