UK energy bills are set to fall by £138 by April – despite households expecting a rise on Thursday during the next bout of cold weather.

Experts at Cornwall Insight said they expect energy bills to fall by £138, or 8 per cent, to £1,620 a year when the cap is next updated in April due to government measures announced in the recent Budget.

Chancellor Rachel Reeves said £150 would be cut from the average household bill from April by scrapping the Energy Company Obligation (Eco) scheme introduced by the Tories in government.

Wholesale energy prices have also dropped in recent weeks, which is set to keep a lid on energy price hikes from April, according to Cornwall Insight.

But, before then, many households’ energy bills are to rise on New Year’s Day, just as a swathe of cold health alerts have been issued for large areas of the UK.

The 0.2 per cent increase to Ofgem’s energy price cap will equate to a rise of about 28p a month for the average household in England, Wales and Scotland remaining on a standard variable tariff.

This amounts to an average overall bill of £1,758 a year, up from the current £1,755.

Regulator Ofgem said Thursday’s increase in the cap, which was announced in November, was being driven by the funding of nuclear power projects and discounts to some households’ winter bills.

This included funding the government’s Sizewell C nuclear power plant in Suffolk – with an average of £1 added to each household’s energy bills per month for the duration of the £38 billion construction.

An increase to standing charges – the amount consumers pay per day to have energy supplied to their homes – was also largely due to costs linked to the government’s warm home discount scheme.

Around 2.7 million more low-income households, including 900,000 families with children, are eligible for the £150 discount this winter.

However, the regulator said the new price cap was £37 lower than a year ago when adjusted for inflation.

Ofgem’s price cap sets a maximum rate per unit and standing charge that customers can be billed when they are not on a fixed tariff.

It does not limit total bills because households still pay for the amount of energy they consume.

The price cap increase comes just as a yellow warning for snow and ice has been issued for parts of Scotland north of the central belt from 6am on New Year’s Day until midnight on January 2.

It comes as amber cold health alerts have been issued for the North East and North West of England, which are due to remain in place until noon on January 5, with temperatures expected to fall to 3-5C.

Yellow cold health alerts have been issued by the UK Health Security Agency (UKHSA) for London and the East, South East and South West of England, as well as the East and West Midlands and Yorkshire and the Humber.

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “It really is a case of every little doesn’t help as households spend a fifth winter in the energy bills crisis. Tiny movements in the price cap still hit hard for families choosing between heating and eating.

“People continue to live in cold, damp homes, where the risks go beyond discomfort and into real danger, including exposure to carbon monoxide. Younger adults, private renters and households with children are among those most at risk as people cut back on heating, delay repairs and try to block draughts just to stay warm.

“Meanwhile, the wider energy industry has made more than £125 billion in UK profits since 2020, including firms operating in a dying North Sea. This isn’t a crisis of scarcity, it’s a crisis of priorities. Ministers must move beyond short-term price cap tweaks and get serious about ending fuel poverty by investing in energy efficiency, reforming energy pricing, introducing a fair social tariff and fully funding the warm homes plan.”

Which? energy editor Emily Seymour said: “As we head into the coldest months of the year, many households will be concerned that the energy price cap will increase slightly in the new year.

“There are several deals on the market for lower than the price cap so now is a good time to shop around if you’re looking to fix. As a rule of thumb, we’d recommend looking for deals cheaper than the current price cap, not longer than 12 months and without significant exit fees.

“If you’re on a variable tariff, make sure to submit a meter reading to ensure you pay the cheaper rates for any energy used before the new price cap takes effect.”

Bucket hats, strawberries and cream sandwiches, and Greggs sausage rolls drenched in KFC gravy defined British consumer spending this year.

We explore the nation’s purchases, month by month.

January

An average temperature of 3C as well as Storm Eowyn bringing 100mph winds and a danger to life to the UK has consumers largely staying indoors. Spending on digital content and subscriptions increased 8.3 per cent year-on-year and growth in spending on takeaways hit a year-long high of 5.1 per cent, according to Barclays.

However, alongside this, online purchases of exercise equipment rise by 60 per cent on the month before, according to Adobe, while spending on supplements including multivitamin powders and pills increases by 26 per cent and sales of fruit and vegetables rise by 24 per cent.

February

More than a quarter of UK adults (27 per cent) plan to focus more on healthy eating as the warmer weather approaches. One in three (30 per cent) say they are paying closer attention to ingredient and nutrition labels and a fifth (22 per cent) have considered, or are already growing, their own fruit and vegetables at home.

This comes as 27 per cent say they are more likely to visit shops and restaurants that offer “healthier” options, increasing to 45 per cent of those aged 18-24. Sought-after alternatives include zero-sugar treats (33 per cent), organic or whole foods (29 per cent) and low or no alcohol drinks (24 per cent).

March

Easter eggs have gone up in price by as much as 50 per cent on last year while shrinking in size, according to Which? – the result of the price of chocolate rising by 16.5 per cent in a year.

Women experiencing perimenopause and menopause are spending an average £1,800 a year on products such as vitamins and smart watches to combat symptoms such as fatigue and hot flushes, a survey suggests.

Some 76 per cent of women are buying vitamins and minerals, 52 per cent have bought supplements and 40 per cent have spent money on hormone support to help manage symptoms, the poll for buy now, pay later service Clearpay found.

April

The so-called “awful April” price hikes combined with high energy costs see the average household facing an annual increase of £1,254 from essential bill rises, according to figures from comparison site Uswitch.

The third consecutive increase to Ofgem’s price cap sees the bill of a typical household paying by direct debit rise 6.4 per cent, an increase of £111 a year or £9.25 a month after it went up by 10 per cent in October and another 1.2 per cent rise in January.

This is 9.4 per cent or £159 higher than this time last year but £531 or 22 per cent lower than at the height of the energy crisis at the start of 2023.

May

The competition watchdog announces that British vets could face a temporary price cap over concerns that pet owners are being ripped off.

The Competition and Markets Authority is looking into the veterinary industry after 56,000 people raised concerns about the sector, including that they are overpaying for medicines and prescriptions and are not being given basic information such as price lists and prescription costs.

Heinz launches a new Fish & Chips Sauce in a rebranding of the classic condiment Tartare sauce.

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The food giant urged consumers to think of its new sauce as “Tartare 2.0”, with the packaging describing the contents as “Tartare Sauce” and listing ingredients as including gherkins, dill, salt, parsley and mustard.

June

Consumers begin to grapple with what will become the UK’s hottest summer on record – complete with four heatwaves between June and August.

Waitrose ice cream sales rise by 10 per cent on the year before, while John Lewis reports sales of garden furniture are up 21 per cent on the previous June, while it sells one million of its basic Anyday handheld fans over the year.

The National Lottery sells 18,600 tickets a minute on June 6 at the peak of the record £208 million EuroMillions jackpot draws.

The run of EuroMillions draws lasting more than 10 weeks generates both the highest ever UK sales of more than £550 million and the biggest ever returns to good causes in the history of the game.

Marks & Spencer launches a dessert sandwich filled with strawberries and cream.

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The £2.80 “game-changing” limited edition Red Diamond Strawberry & Creme Sandwich is filled with the fruit and light whipped cream cheese on fluffy sweetened bread.

July

Oasis’s long-awaited Live ‘25 reunion tour kicks off in Cardiff on July 4.

The tour sets off a boom in sales of bucket hats, with even John Lewis reporting sales are up 40 per cent in the first half of 2025 in comparison with the same period in 2024.

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Tesco reports record fruit sales as consumers seek to stay hydrated amid high temperatures.

The UK’s biggest supermarket says it has seen overall demand for fruit soar by an “unprecedented” near 10 per cent over the month, with berries, stone fruit, kiwis, melons, watermelons, pineapples, grapes and bananas all hitting record volume growth.

The grocer said it had ordered extra supplies ahead of days of forecasted 30C temperatures to cope with expected demand.

August

Greggs and KFC team up to create the “culinary crossover of the century” in the form of a sausage roll drenched in gravy.

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The high street food giants worked together for the first time to offer the Greggs sausage roll with KFC gravy, claiming it is the “mash-up the nation’s been craving” and “seriously flavoursome”.

September

The extended hot summer leads to sales of swimwear breaking records at John Lewis, up 18 per cent in September and 28 per cent in October on the previous year. The late summer also saw outdoor cooking kit sales continuing to soar by 42 per cent at the department store.

Fake Labubu dolls – tipped to be a best-selling toy this Christmas – are seized amid warnings they could pose a potentially fatal choking hazard for young children.

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Later this month, the Intellectual Property Office says fake toys worth more than £3.5 million have been seized at the UK border already this year, with 75 per cent of them failing critical safety tests.

Of the 259,000 fake toys intercepted at the border, 90 per cent of them – or 236,000 items – were counterfeit Labubu dolls.

High street food chain Greggs announces it is to open its first pub within the Fenwick Newcastle department store, serving exclusive beers and a menu featuring its classic bakes and sausage rolls.

October

Charlie Bigham launches a range of supermarket ready meals costing up to £30 to appeal to consumers balking at the soaring price of dining out.

The entrepreneur’s new Brasserie range of beef wellington, salmon wellington, coq au vin, duck confit and venison bourguignon was motivated by the rising cost of eating in restaurants, the entrepreneur said.

Almost half of adults (48 per cent) in Great Britain have gambled in the last four weeks, according to an annual survey by the Gambling Commission.

The headline figure falls to 28 per cent when those who had only bought tickets for a lottery draw were excluded.

Virginia Giuffre’s posthumous memoir Nobody’s Girl goes on sale, in which she writes about her three alleged sexual encounters with the then Prince Andrew.

TGJones, formerly WHSmith, reports sales of the memoir increasing every day since its launch on October 21. The retailer said it was selling three times as many copies of the book as it predicted it would.

November

The Classic Bagel from London’s Papo’s Bagels is named Deliveroo’s most popular order among any of its worldwide operations, according to the firm.

Papo’s, an independent, family-run bagel kitchen, was the most ordered takeaway on Deliveroo this year with its Classic option, which combines smoked salmon, cream cheese, sliced red onion, tomatoes and capers.

Consumers learn fresh British-grown strawberries will be widely available to buy this Christmas after a firm extended the season to 12 months with new technology.

The Summer Berry Company, one of the UK’s leading fruit producers based near Chichester, is now growing British strawberries at a commercial scale all year round with the help of LED technology through the colder months.

The final of The Celebrity Traitors attracts 11.1 million viewers. John Lewis reports a run on wrist warmers after the show’s presenter Claudia Winkleman wears them throughout the series.

December

High street baker Greggs strikes again, launching its first range of Christmas cards which come with the gift of a sausage roll.

The range – called the Ultimate Secret Santa Surprise – includes a £3.95 card featuring heat-activated ink which, when warmed, reveals a code to redeem a free sausage roll or vegan sausage roll.

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The cards come with the option to personalise some of the designs, such as by adding a loved one’s face to a sausage roll.

Consumers learn Christmas dinner will cost a few pence less than last year in some rare good news for household budgets.

A turkey and all the trimmings for four will cost an average £32.46 this year, slightly down on last year’s £32.57 – which was up 6.5 per cent on the year before, according to market research firm Worldpanel by Numerator, formerly Kantar.

Tesco announces it is giving away ‘wonky’ Christmas trees to help the nation embrace “the parts of Christmas that aren’t always perfect but are still just as wonderful”.

By Richard W. Stevenson, Mohammed Hadi, Nestor Ramos, Nikita Stewart, Michael Mason, Gilad Thaler, David Seekamp, Lauren Pruitt, Luke Piotrowski and Edward Vega

December 31, 2025