Even though inflation has slowed compared to 2022–2023, millions of UK households are still facing rising bills in 2025. From energy and food to rent and council tax, the squeeze hasn’t gone away. Here are the 10 biggest reasons why costs are staying high.
1. Energy Costs Remain Elevated
The biggest driver of high household bills is still energy prices. Even though the Ofgem price cap has dropped compared to its peak in 2023, it remains much higher than before the pandemic.
Why Energy Bills Stay High
- Global wholesale gas prices remain unstable.
- The war in Ukraine disrupted long-term supply.
- Green energy investment costs are being passed on to consumers.
Real Impact
A household that paid around £1,000 a year in 2019 now pays close to £1,700–£1,750 in 2025.