Money Wellness

energy

Published 10 Jul 2025

5 min read

Why Brits pay more for energy than most of Europe

Even though the energy price cap fell on 1 July, UK households are still paying some of the highest energy bills in the world – and many are already in debt just to keep the lights on.

Image of a lightbulb surrounded by dollars and euros. Why Brits pay more for energy than most of Europe
Caroline Chell - Money Wellness

Written by: Caroline Chell

Head of Communications

Published: 10 July 2025

We’ve taken a deep dive into the numbers and compared UK prices with what people pay across Europe and beyond. The results show how tough things remain for many.

Energy bills remain high – and debts are rising

As of July, the average dual-fuel bill has dropped to £1,568 a year. That’s a 7% decrease, but prices are still 60% higher than they were before the energy crisis began. And according to Ofgem, Brits now owe a record-breaking £3.9 billion in unpaid energy bills.

Many people are cutting back on food, relying on credit cards to top up their meters, or simply going without heat. Energy debt is a ‘living debt’ – the bills don’t stop, and the arrears just build up.

How do UK prices compare?

Let’s break it down.

Electricity

From July, electricity in the UK will cost an average of 25.73p per kWh – putting us among the most expensive countries in the world:

Country

Electricity Cost (per kWh)

Germany

33.5p

Italy

26.4p

UK

25.73p

France

24.8p

Australia

13–23p

USA

13p

Canada

10p

South Korea

9.7p

Gas

Gas is no better. Brits will pay around 6.04p per kWh, while people in Canada and the USA pay less than half that.

Country

Gas Cost (per kWh)

Germany

11.6p

Italy

9.6p

France

7.5p

UK

6.04p

Australia

3.8p

USA

2.7p

Canada

2.8p

We rely heavily on gas in the UK. Around 85% of homes use it for heating. That makes us especially vulnerable to global price shocks.

Standing charges add up – and vary by country

UK households now pay over £330 a year in standing charges, that’s before using a single unit of energy.

  • Electricity: 60.1p/day
  • Gas: 31.4p/day

In many other countries, standing charges are lower or included in the overall price, making bills easier to manage. Here’s how we compare:

Country

Standing Charges (Daily)

UK

91.5p (electric + gas)

France

~20p combined

Germany

25–35p per utility

USA/Canada

~£5–£10/month

Australia

30–50p/day

What you can do if you're in energy debt

If you’re behind on your energy bills or struggling to keep up, you’re not alone. But help is out there – and you don’t have to face it alone. Here are six things you can do today:

Check if you qualify for a social tariff

Some energy companies offer cheaper rates for people on low incomes or benefits like Universal Credit or Pension Credit. These social tariffs aren’t always advertised, so you’ll need to contact your supplier directly and ask. You could save up to £400 a year.

Apply for a hardship grant

Many suppliers run hardship funds to help people clear their energy debt. If you're eligible, you could get £500–£1,500 or more written off. Ask your supplier how to apply.

Ask for a fair payment plan

Your energy company must offer a realistic payment plan that takes your financial situation into account. If the plan they offer feels unmanageable, ask for a review. You have the right to a plan you can actually afford.

Contact your local council

Many councils still have Household Support Fund money available. You could get help with top-ups, arrears, or even vouchers for fuel and food. Support varies by area, so check your local council’s website or give them a call.

See if you qualify for free home upgrades

You could get free insulation or heating upgrades through schemes like ECO4 or the Great British Insulation Scheme. These upgrades could save you up to £500 a year on your bills. You don’t always need to be on benefits to qualify.

Get debt advice

If you’re struggling with energy debt, there’s a good chance you’re juggling other bills too. expert advice on budgetingbenefits, and managing your money is available. You don’t have to go it alone.

Caroline Chell - Money Wellness

Written by: Caroline Chell

Head of Communications

Caroline has worked in financial communications for more than 10 years, writing content on subjects such as pensions, mortgages, loans and credit cards, as well as stockbroking and investment advice.

Published: 10 July 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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Caroline Chell - Money Wellness

Written by: Caroline Chell

Head of Communications

Published: 10 July 2025

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