Energy bills then vs now: are you really paying more than in the ‘70s, ‘80s and ‘90s?

If you’ve opened your energy bill lately and winced, you’re not alone. Today, energy costs are one of the biggest pressures on monthly budgets. In September 2025, the amount of money owed by households to energy suppliers hit £4.4bn - a record high.

There’s a bit of good news, though. The energy regulator Ofgem has confirmed that in April, the energy price cap will fall by 7%. That means the cap will drop by £117 to £1,641 a year for a typical dual fuel household, around £10 a month back in your pocket if you use gas and electricity.

But here’s the big question: how does what you’re paying today compare to the 1970s, ‘80s and ‘90s, in real terms?

What is the energy price cap and why should you care?

The price cap was introduced in 2019. It limits how much suppliers can charge you per unit of gas and electricity. It doesn’t cap your total bill, as that depends on how much energy you use, but it does stop suppliers from charging above a set rate.

The government says the latest cut is part of its mission to ease the cost of living. And yes, any drop helps.

But are we actually paying more of our income on energy than previous generations?

The 1970s: energy was cheap but life was different

Back in the 1970s, energy was relatively cheap.

Homes were less dependent on constant central heating. You probably wouldn’t have had the same number of appliances running all day. As a result, energy bills made up a much smaller slice of household income.

If you’d lived then, your expectations around warmth and energy use would likely have been very different from today.

The early 1980s: a spike in cost

Things changed dramatically after the 1979 oil crisis, which saw a global energy shortage.

According to figures by the Centre for Competition Policy (CCP), by the mid-1980s, UK households were spending around 9.3% of their income on energy, the highest level on record. Electricity prices jumped sharply, including a 22% rise between July 1980 and July 1981.

If you were running a home at that time, you would definitely have felt it.

The 1990s: the ‘good old days’ for energy bills?

Compared to the ‘80s, the 1990s brought some relief.

UK parliament figures show between around 1990 and 1999:

• gas bills fell by roughly 31% in real terms
• electricity bills dropped by around 18%

Increased competition and price controls helped drive costs down, even after VAT was introduced in 1995.

If you were paying bills in the ‘90s, energy would have taken up a much smaller chunk of your income than it does today.

2000–2020: a long period of stability

For two decades, energy costs generally stayed below 5% of average household income.

Things felt manageable. And then came the energy crisis.

Energy prices started rising in September 2021 following the COVID-19 lockdowns. Demand for energy increased quickly, but supply couldn’t keep up. Then, when Russia invaded Ukraine in February 2022, prices surged even higher. Electricity and gas costs hit record levels, peaking in late 2022.

2023: back to 1980s' levels

By 2023, households were spending more than 7.4% of their income on energy.

According to official data analysed by OHMS Renewables:

• the average annual electricity bill was £425 in 2008
• by 2024, it had risen to £1,118

That’s a 163% increase!

Worried about your bills? Here’s what you can do

If you’re feeling anxious about keeping up with payments, don’t ignore it. The earlier you act, the more options you usually have.

Contact your supplier

If you’re struggling, speak to your supplier straight away.

Most suppliers will work with you to agree smaller, affordable payments over time.

Any payment plan you agree will include an amount towards what you owe and an amount towards your current use.

Your supplier must look at what you can afford and how much energy or water you use.

See if you can repay through your benefits

If you owe money on your bills and receive benefits like universal credit, you can ask for a set amount to come from this support to repay your debt.

The Water Direct and Fuel Direct schemes offer struggling households a helpful and convenient way to manage arrears, as payments are taken automatically from benefits and at a fixed rate, which can make it easier to budget.

Find out what financial support is available

Many energy companies offer grants to help customers clear or reduce arrears.

You may also get help from the government, such as: 

• the warm home discount
• winter fuel payments

Your water company, meanwhile, may offer a hardship fund to help you if you’re struggling to pay your bills.

You may also be eligible for a discounted tariff if you're on a low income.

Ask your supplier what help you could get. 

Or get in touch with the Consumer Council for Water (CCW), which supports water customers in England and Wales.

Join the Priority Services Register (PSR)

If you're vulnerable, you could join the Priority Services Register (PSR).

The PSR is a free service that offers extra support to people who need help with their energy and water supply.

By joining, you could benefit from extra support during power cuts or help to make your billing more understandable.

You could be eligible if you’re disabled, have a long-term medical condition, a mental health condition, communication needs or are pregnant.

Manage your household budget

Gas and electricity are just some of the costs that come with running a household.

So it’s well worth creating a budget, so you can see how much money you have coming in each month and prioritise your spending.

You can then be confident that you’re able to cover these vital expenses, as well as work out what you can afford to spend on non-essentials and put into savings.

Get started with our budget planner - it’s free and easy to use.