Rising Costs at Home Drive Scots to Seek Lower Cost of Living in Portugal

With UK households facing yet another rise in energy bills this autumn, increasing numbers of Scots are looking further afield — far south, in fact — for a better quality of life at a lower cost.

Credits: Supplied Image; Author: © Algarve Tourism;

Typical gas and electricity bills rose again on 1 October 2025, when the new Ofgem energy price cap came into effect. The cap limits what energy suppliers can charge per unit of gas or electricity, though total bills still depend on individual usage.

According to Ofgem, which updates the cap every three months, around 20 million households across the UK are covered. Between 1 October and 31 December 2025, a typical dual-fuel household paying by direct debit will face an annual bill of £1,755 — up £35 on the previous quarter. Electricity is capped at 26.35 pence per kWh, and gas at 6.29 pence per kWh.

In contrast, data from Eurostat shows that “medium-sized households” in Portugal paid an average of €0.24 per kWh for electricity at the end of 2024 — noticeably lower than in the UK. Combined with Portugal’s mild year-round climate, which reduces heating demand, and generally lower living costs, household budgets there stretch considerably further.

“Portugal offers a rare mix of affordability, safety and sunshine,” says Christina Hippisley, General Manager of the Portuguese Chamber of Commerce in the UK. “For many people on fixed or retirement incomes, even everyday expenses such as energy bills can make a meaningful difference to their quality of life.”

Beyond the financial advantages, Portugal’s enduring appeal rests on its high standards of healthcare, stable social environment, and straightforward residency options. The country regularly tops global rankings for lifestyle and retirement destinations.

The growing interest in Portugal from the UK — and particularly from Scotland — will be reflected at the new Moving to Portugal Show & Seminars, taking place at The Scotsman Hotel in Edinburgh on Friday 21 November 2025 from 12hrs to 7pm.

Organised by the Portuguese Chamber of Commerce in the UK, the free-to-attend event will bring together property, legal, tax and relocation specialists to offer practical guidance to anyone considering a sunshine life abroad. Attendees will also have the opportunity to meet people who have already made the move and hear first-hand about their experiences of living in Portugal.

“Our Edinburgh event will provide the facts, figures and expert contacts people need to make an informed decision about whether a move abroad could be right for them,” Hippisley adds.