✔ The typical dual tariff customer paying direct debit will pay £2,500 per year
✔ This is 96% higher than prices during winter 2021
✔ The Energy Price Guarantee is now set to end in April 2023
Brits are enduring some of the most expensive energy bills in the whole of Europe. In fact, the average UK household electricity price in September 2022 was at least 30% higher than in many European countries (Financial Times, 2022).
Although the average energy bill in the UK has reached new heights, each person’s bill will depend on a number of factors including location, the size of the property, and the household’s annual energy consumption.
Want to have a better idea of what the average UK energy bill looks like? Let’s take a closer look.
What’s on this page?
The average energy bill in the UK by household size
As of October 2022, the average annual dual tariff energy bill for the typical direct debit customer is £2,500 per year– or £208 a month – for a three-bedroom property.
With many British households at risk of going into fuel poverty, then Prime Minister Liz Truss introduced the Energy Price Guarantee (EPG), which reduces dual tariff energy bills for the typical direct debit customer at £2,500.
Although the EPG figure of £2,500 per year is lower than the original price cap for October, it’s still 27% more than the summer 2022 cap – and 96% higher than prices during winter 2021.
But remember, this £2,500 figure is not the maximum amount that a household can pay – it’s the typical amount, meaning average bills for larger properties can be much higher.
We’ve outlined the average energy bills for different-sized properties in the table below.
| Household size | Number of bedrooms | Average annual energy consumption (KWh) | Average total annual energy bill |
|---|---|---|---|
| Small | 1-2 | 1,800 – 8,000 | £1,607 |
| Medium | 2-3 | 2,900 – 12,000 | £2,495 |
| Large | 4-5 | 4,300 – 17,000 | £3,611 |
Data from Ofgem, October 2022A recent government announcement states that, despite the original plan, the EPG will be increasing in April 2023. Want to find out how much you could be spending on energy soon? Check out our page: How Much Are Energy Bills Going Up In April 2023?
Why is my energy bill different to the averages in the table?
The figures in the table above are based on averages. Although they provide a rough guide on what the typical household can expect to pay, figures fluctuate from person to person. Your actual energy bill will depend on:
- Your energy usage – The more energy you use, the higher your bill will be. Your home’s energy consumption will depend on the size of the property, the number of people living in it, its energy efficiency, and the number of appliances or devices you use
- Your tariff – Different tariffs can benefit homeowners in various ways. For example, fixed tariffs offer a set unit price for gas and electricity over the course of the contract, whereas an Economy 7 tariff provides cheap off-peak electricity
- Meter type – Prepayment meters, which allow customers to top up their energy as they go, are much more expensive to run than standard energy meters
- Location – The price of your gas and electricity will vary slightly depending on where you live in the UK. This is because there are different network costs associated with delivering energy in different regions
What is the Energy Price Guarantee – and when does it end?
The Energy Price Cap Guarantee is a government initiative that lowers the amount of money households have to pay for their energy bills. The previous Prime Minister, Liz Truss, announced the support scheme on 8 September 2022, in a bid to reduce the impact of rising energy bills.
It was originally announced that the EPG will last for two years – remaining at £2,500 for the typical user throughout this time. However, newly-appointed Chancellor Jeremy Hunt has since changed the EPG plan so that it’ll only last until April 2023.
At that point, unit rates are likely to increase and prices will go back to those set by the Ofgem price cap, which means households are likely to see a considerable jump in their energy bills. Cornwall Insights – an independent energy research, analytics, and consulting firm – recently estimated that a typical household could pay roughly £3,702 per year, or £308 per month, from April 2023 onwards. That’s a 48% increase from current levels.
Hunt has said that low-income households will receive different support for their bills from April 2023 – but it’s not clear what this will look like, and who will be eligible.
What is the current support available for energy bills?
As well as introducing the Energy Price Guarantee, the government has also released the Cost of Living Support package, which began in October 2022 and aims to help all UK households afford their energy bills this winter – some more than others.
The Cost of Living Support package provides financial support to:
- All UK households – All households in England, Scotland, and Wales should receive £400 to help them afford rising energy bills. Unlike Rishi Sunak’s original plan, this £400 payment will be given as a grant rather than a loan, and will come automatically be discounted from energy bills over the course of six months
- Low-income households – As well as receiving the standard £400 grant, low-income households are able to get a one-off £650 payment. Anyone with one of the following means-tested benefits will be eligible for the grant:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
- Pensioners – As well as receiving the standard £400 grant, UK pensioners will be able to get a one-off £300 payment. Anyone who’s the state pension age of 66 or above (as of 19–25 September 2022) will be eligible for the payment
- Disabled households – The government is offering a £150 Disability Cost of Living Payment, which will be an add-on to the standard £400 grant. Anyone receiving the following disability benefits will be eligible for the one-off payment:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Scottish Disability Benefits
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
What can you do to reduce your energy bills?
You might be able to ease the blow of expensive energy bills by practising a few energy-saving techniques at home.
If you’re looking for affordable ways to save money on energy bills, you can start by just blocking draughts, swapping bulbs for LEDs, not blocking your radiators, or using energy-intensive appliances at certain times of the day.
If you’d rather spend more now to save money in the long run, it’s worth getting a set of solar panels for your roof, installing proper insulation, and replacing worn-out windows.
Want to learn more ways to cut back on energy costs? We’ve got plenty of tips on our page: The Top 17 Ways to Reduce Your Energy Bills.
Summary
The past year has certainly been a turbulent time in the UK. Not only have we had to deal with the energy crisis, but we’ve also had three prime ministers, each with their own strategy on how to deal with the rising cost of energy.
As it stands, the average energy bill in the UK is currently about £2,500 per year – but we can expect this to increase further throughout next year. Although, the current chancellor has announced that there will be some financial help available for vulnerable groups, so keep your eyes peeled for further developments.
