Bundled energy deals and regular supplier comparisons are helping families cope with rising costs as arrears reach record highs.
October Price Cap Rise Adds Pressure
From October 2025, Ofgem’s latest price cap review will raise the typical dual fuel bill by 2% to £1,755 per year. For households already paying around £600 more annually than before the energy crisis began in 2021, this latest increase will add further strain.
The Resolution Foundation recently revealed that more than one million UK households are now behind on their gas and electricity bills without a repayment plan. StepChange, the debt charity, reports that two in five of its clients are in arrears, with average energy debts of £2,300.
As families prepare for winter, the search for manageable tariffs and simpler billing has intensified.
Why Dual Fuel Tariffs Are Growing in Popularity
One of the most notable trends in 2025 has been the shift towards dual fuel tariffs. These deals allow households to take both gas and electricity from the same supplier, creating practical advantages such as:
- A single bill and account to manage.
- The potential for bundled discounts.
- Clearer budgeting across the year.
While not always the absolute cheapest option, dual fuel tariffs offer predictability and convenience. For households already juggling council tax, rent, and other rising costs, having one bill instead of two can make a real difference.
Standing Charges Add to the Burden
Even families that have cut back on usage are facing higher bills. Standing charges — the daily fee paid just to stay connected to the energy grid — have risen sharply in recent years.
This means that households using less gas or electricity, including pensioners and low-income families, are still paying significantly more than before. By bundling gas and electricity together, some dual fuel tariffs help offset these fixed costs with package savings.
The Role of Supplier Comparisons
Choosing the right dual fuel plan isn’t straightforward, as offers vary widely between providers. That’s why more households are using tools to regularly compare energy suppliers.
By reviewing tariffs when the price cap changes each quarter, families can avoid being stuck on deals that no longer represent value. Some opt for fixed-rate plans to lock in stability, while others prefer variable contracts that track the market.
The key is regular engagement with the market, rather than assuming that the default supplier tariff is best.
Expert Insight
Shay Ramani, CEO of Free Price Compare, commented:
“Dual fuel tariffs have become increasingly attractive because they give households simplicity at a time when bills feel more complicated than ever. For many families, having one payment instead of two reduces the risk of arrears and makes budgeting easier.
At the same time, it’s important not to assume all dual fuel deals are the same. We always advise households to compare energy suppliers before making a decision. Even modest savings of £150 a year can help reduce arrears and build financial resilience.”
Preparing for Winter
With colder months approaching, experts suggest households take proactive steps:
- Check your current bill — note your annual usage and standing charges.
- Review dual fuel tariffs — see if bundling could simplify payments and reduce costs.
- Compare energy suppliers — use independent tools to weigh up options across the market.
- Switch if a better deal exists — especially before winter demand pushes up bills.
Building Resilience Through Smart Choices
The reality is that UK households cannot control global gas prices or Ofgem’s quarterly cap reviews. But they can make choices that ease the pressure at home.
By exploring dual fuel tariffs and regularly comparing suppliers, families can take control of their energy costs. In an environment where arrears are at record highs, those steps are becoming not just advisable, but essential.
Source: FG Newswire