Households urged to compare gas prices and review suppliers as standing charges and tariff changes leave bills higher than expected.
Wholesale Prices Fall, But Bills Stay High
Wholesale gas prices have eased from the record peaks seen during 2022 and 2023, yet UK households are not seeing the same level of relief on their bills. Ofgem has confirmed that the October 2025 price cap will rise by another 2%, setting the average annual dual fuel bill at £1,755.
This paradox — cheaper gas at wholesale but expensive energy at home — is creating frustration for families already struggling to manage household budgets.
Why Households Are Still Paying More
Several factors are keeping bills elevated despite the wholesale decline:
- Standing charges – Daily fees that apply regardless of usage have increased significantly, adding hundreds of pounds to annual bills.
- Supplier costs – Energy firms are rebuilding reserves and covering costs from the crisis years, meaning savings are not fully passed on.
- Cap timing – Ofgem’s quarterly price cap reviews mean there is often a delay between wholesale movements and consumer bills.
The end result is that many households are still paying around £600 more per year than before the energy crisis began.
Comparing Gas Prices Becomes Vital
Analysts warn that families who stick with default or standard tariffs risk paying more than necessary. Independent tools now make it easy to compare gas prices across suppliers, helping households spot cheaper options.
By reviewing tariffs when the price cap shifts, families can avoid being caught on deals that no longer represent value. Even modest savings of £150–£200 annually can help reduce the burden of rising arrears.
Switching Suppliers to Cut Costs
The latest figures suggest more households are acting. Switching activity has increased steadily throughout 2025, as consumers look for ways to ease the impact of higher bills.
Using online services to switch energy supplier through platforms like Free Price Compare is becoming as common as shopping around for car insurance or broadband. Families that actively compare suppliers tend to secure better rates, improved customer service, or more suitable fixed-term contracts.
The message is clear: in a volatile market, passivity costs money.
The Debt Picture
The Resolution Foundation reports that more than one million households are now in arrears on their gas and electricity bills without a repayment plan in place. Average arrears have doubled in the past decade, with gas debts now around £1,400.
Debt charity StepChange says two in five of its clients are in energy arrears, often juggling multiple priority debts at once. The organisation warns that without regular tariff reviews and switching, many families will remain trapped in a cycle of arrears and rising charges.
Expert Comment
Andrea Troy, Director of Products & Services at Free Price Compare, said:
“Falling wholesale prices don’t automatically mean cheaper household bills. Standing charges and supplier costs are keeping gas bills stubbornly high. That’s why households should compare gas prices regularly and check if switching supplier could help. Even small savings add up when budgets are tight.”
Troy added that consumer engagement is the best way to create pressure for better deals:
“The more households compare and switch, the more competitive the market becomes. It’s a simple but powerful way to bring down costs at scale.”
Preparing for Winter
With colder months ahead, households are advised to:
- Check their latest bill — note both usage and standing charges.
- Compare gas prices — review deals across the market, not just with the current supplier.
- Switch energy supplier if a cheaper tariff is available.
- Act early — avoid waiting until winter demand drives up costs further.
Taking Back Control
UK households cannot influence global gas markets or Ofgem’s cap decisions, but they can take action at home. By comparing gas prices, switching suppliers, and staying engaged with the market, families can avoid paying over the odds and protect themselves from rising arrears.
