London Daily

Focus on the big picture.
Wednesday, Oct 08, 2025

Energy bills set to soar but millions may get £200 help

Energy bills set to soar but millions may get £200 help

A record rise in energy bills is set to be announced on Thursday, but the government may step in to reduce bills by £200 for many households.

The energy regulator will detail how much bills can rise from the beginning of April, with forecasts they could reach £2,000 for many homes.

Energy firms are likely to be given loans to help them cut customers' bills, the BBC has been told.

Ministers may also extend targeted help for those in need.

But there are doubts over whether the measures will be ready by the time higher prices start on 1 April.

Energy bosses have told the BBC that they have been kept largely in the dark about the government's plans.

While some have described the plan to lend money to energy companies, to allow them to reduce bills as credible, they say they are worried that the details of the plan have not been thought through.

Energy firms are struggling under the weight of surging wholesale gas prices, and passing on some of that rise to consumers, driving up the cost of living.

Rising energy bills have helped push inflation up to a 30-year high, leaving the government under pressure to intervene.

The Treasury's "rebate and clawback" scheme, first revealed in The Times, would involve providing around £5-6bn in loans to energy firms to enable them to lower bills.

But the scheme has raised concerns among providers because the money would still have to be paid back eventually.

Energy bosses told the BBC they expect the plan would include recouping the money from households over three to five years as wholesale costs fall.

However, the bosses said wholesale prices are not expected to fall significantly any time soon.

Ofgem was meant to reveal April's price cap - which sets how much providers can charge for gas and electricity - next Monday, but it has brought the announcement forward.

The government's announcement, which could come as early as Thursday, may also include an extension of the warm homes discount and changes in other benefits.


One of the UK's biggest providers, EDF, said in a statement it would welcome government action, but gave no details of any plan nor the timing.

Philippe Commaret, the firm's managing director for customers, said: "Ballooning wholesale gas prices are driving energy bills up and customers need government to act now, especially to support those most in need.

"We look forward to hearing from government urgently on how it will help struggling households beyond the support energy companies already provide. Delaying action adds to the stress and anxiety households face."

It is feared Ofgem's announcement will take the average annual domestic energy bill from 1 April to about £2,000 for 22 million households, up from about £1,300.

That has intensified calls in recent weeks for the government to step in to help struggling households.

Citizens Advice revealed they have already seen a record number of people turning to them for advice on energy debts.

The cost of living is forecast to rise further this year, along with interest rates.

Across the economy individuals and companies are reporting price pressures. On Wednesday, a survey found that shoppers are seeing the sharpest rise in prices for a decade.

The cost of broadband and mobile phones, raw materials, transport and fuel, and food and drink are among a wide range of products and services now on the rise.

There are also planned tax rises in April, with Prime Minister Boris Johnson under intense pressure to scrap an increase in National Insurance. But he, and Chancellor Rishi Sunak, said at the weekend the NI rise would go ahead.

Newsletter

Related Articles

0:00
0:00
Close
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
US Prosecutors Gained Legal Approval to Hack Telegram Servers
Macron Faces Intensifying Pressure to Resign or Trigger New Elections Amid France’s Political Turmoil
Standard Chartered Names Roberto Hoornweg as Sole Head of Corporate & Investment Banking
UK Asylum Housing Firm Faces Backlash Over £187 Million Profits and Poor Living Conditions
UK Police Crack Major Gang in Smuggling of up to 40,000 Stolen Phones to China
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Trump Proposes Farm Bailout from Tariff Revenues Amid Backlash from Other Industries
FIFA Accuses Malaysia of Forging Citizenship Documents, Suspends Seven Footballers
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
A Dollar Coin Featuring Trump’s Portrait Expected to Be Issued Next Year
Australia Orders X to Block Murder Videos, Citing Online Safety and Public Exposure
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
×