How to manage your mental health and money following the energy price rise

With energy prices remaining high in 2025, many households continue to face financial strain. High energy prices particularly affect those on the lowest incomes who typically have less flexibility in their spending, as well as people living with a mental health condition. Worrying about money and having an improperly heated home are factors known to negatively affect your mental health. 

If you're worried about fuel poverty, it's essential to understand the current landscape and know what support is available. 

Understanding the Energy Price Cap in 2025 

As of April 1, 2025, Ofgem increased the energy price cap by 6.4%, setting the average annual bill for a typical dual-fuel household paying by Direct Debit at £1,849. This rise reflects higher wholesale energy costs. However, starting July 1, 2025, the cap is set to decrease by 7% to £1,720, offering some relief to consumers. 

It's important to note that the price cap limits the rate per unit of energy and standing charges, not the total bill. Therefore, your actual bill will depend on your energy usage. 

Who Is Affected? 

The energy price cap applies to:

• Households on standard variable tariffs (default tariffs) 
• Anyone whose fixed deal has come to an end (or is about to) 
• Customers who were moved to a new supplier after their previous one went bankrupt. 

What if I use a prepaid meter? 

If your energy is paid through a prepayment meter, you will still be affected by the energy price cap. As of April 2025, the average annual bill for prepayment meter customers is £1,803.

What if I can't afford my new energy bill?

Help is available if you can't pay the higher energy bills. Start by contacting your energy supplier and explaining why you can't afford the new energy bill.

This may be the last thing you want to do, but they won't just cut your supply off if you agree to work with them and agree on a payment plan that you can afford. These options can include:

• Reviewing your payments or debt repayments.
• Reducing your payments or taking a payment break.
• Allowing more time to pay.

Priority Services Register

You can ask to be put onto the Priority Services Register if you or someone you know is vulnerable due to poor mental health.

This is a free service. Support varies but can include:

• Priority reconnection in the event of power cuts.
• Large format or Braille bills.
• Advanced notice of service interruptions.

Contact your energy supplier or network operator to get on the register.

You may also be eligible for extra financial help from the government from:

• Hardship payments
• Welfare Assistance Schemes
• Short-Term Benefit Advance

Hardship payments

If you are receiving certain welfare benefits but need urgent financial help to pay your energy bills, you may be able to get a hardship payment from the DWP. Find out more about hardship payments and how to apply.

Welfare Assistance Schemes

Local councils run Welfare Assistance Schemes to help residents in financial difficulty. Visit your local council website to find out what schemes might be available.

Short-Term Benefit Advance

If you are claiming welfare benefits, you can ask for an advance if you have made a claim but need the money sooner - the money will be taken back over 12 weeks.

You should contact the DWP office handling your claim.

Can they cut my energy supply off?

Gas and electricity companies can't cut off your supply unless they have first offered you a range of payment methods to help you pay.

They can only disconnect your supply as a last resort, and they must give you proper notice first.

What to do if the energy price rises affect your mental health

We know that the energy price rise is an uncertain time for people - in addition to the government cuts announced in 2021 - especially if you are experiencing mental health difficulties.

Worrying about money can impact your mental health while living with a mental health condition can make earning and managing money more difficult.

If you think your mental health and money will be affected by the energy price rises, you must take action.

We have listed a few things that can help you manage your money and mental health during this challenging period.

Talk to someone about your worries

It is important to talk to someone if you are worried about how the energy price rise will affect you.

Help is available, and the following services provide free financial advice and/or mental health support.

• Rethink Mental Illness – Mental Health Advice & Information Service
  • Get detailed advice, support, and information on mental illness and mental health conditions.
• Turn2Us
  • Turn2us is a national charity that helps people in financial hardship gain access to welfare benefits, charitable grants and support services.

Download the free Mental Health & Money Toolkit

The free Mental Health and Money Toolkit helps you understand, manage and improve your mental and financial health.

Work out how much money you need every month

You can use your bank account statements to help you do this.

Make a list of expenditure

Make a list of your outgoings on a piece of paper or use a spreadsheet on the computer. Add up all the things you spend money on.

It will help you see how much money goes on electricity, gas, food, clothes, travel, rent etc.

Prioritise your outgoings

Once you have your list, you need to prioritise what to spend money on first. Essential items you should always prioritise are:

• Food.
• Rent/Mortgage payments.
• Energy bills.
• Council Tax.

Make a budget

Using your priority list, you can determine how much money you will need every month by making a budget.

Find out how to make a budget or use our free budget calculator tool.

What to do if you are in debt

If you are spending more money than is coming in, it is important not to panic or ignore it. Instead, we would advise you to seek free debt advice.

In the meantime, here are a few things you can do:

• Read our dedicated dealing with your debt section.
• Download our free Mental Health and Money Toolkit.
• See if you are eligible for a breathing space.

What if I don't feel supported by my energy provider?

If you don't feel supported by your energy provider, you can contact Ofgem. Ofgem is the energy regulator for Great Britain and administers the non-domestic Renewable Heat Incentive in Northern Ireland. Ofgem's step-by-step guide helps you through the process of making a complaint about your energy provider, and can be found here.