Household energy bills in Great Britain will rise again this winter. The regulator Ofgem announced on Wednesday, August 26 that its price cap will increase by 4% from October 1, taking a typical dual-fuel bill paid by direct debit from £1,663 to £1,723 a year — an extra £60, or about £5 a month.
Who is affected
The cap applies to around 22 million households on default or standard variable tariffs. About 35% of customers — roughly 11 million households — are on fixed deals and will not see this change until their fix ends. The new cap runs from October 1 to December 31, 2026.
Ofgem’s figures are based on “typical” consumption, which the regulator lowered in July to reflect falling household energy use. Your bill will depend on how much you actually use: the cap limits unit rates and standing charges, not the total you pay.
Why bills are going up
The main driver is the wholesale cost of gas, which rose 11% over the past three months as the conflict in the Middle East unsettled global energy markets. “High international gas prices are continuing to drive energy costs in the UK,” said Neil Kenward, Ofgem’s director general for markets.
The rise falls mainly on gas, where bills will increase by about 8%. Electricity bills stay broadly flat because the government has removed VAT from domestic electricity — without that change, the typical increase would have been around £45 higher. Homes that do not use gas will see a rise of less than 1%.
In context, prices remain 52% below the peak of the 2022 energy crisis, when the government capped bills at £2,500. But adjusted for inflation, the new cap is 7% higher than at the same point in 2025, and some analysts are already forecasting a larger increase in January.
Practical ways to cut your bill
- Compare fixed deals. Ofgem says some fixed tariffs are available at £100 or more below the October cap. Check exit fees and the length of the fix before switching.
- Use cheaper hours. Many suppliers offer smart-meter tariffs with lower prices outside peak times — useful for laundry, dishwashers and electric-vehicle charging.
- Review how you pay. Prepayment customers pay the lowest cap rates, saving an average of about £45 a year compared with direct debit. Direct debit is still cheaper than paying on receipt of a bill.
- Tackle heat loss. Draught-proofing doors and windows, bleeding radiators and turning the boiler flow temperature down slightly can cut gas use without making homes cold.
- Submit meter readings. Send a reading on or just before October 1 so you are not charged the new rate for energy used earlier.
If you are struggling
Ofgem urges anyone worried about paying to contact their supplier as early as possible. Suppliers are required to agree affordable repayment plans and to point customers towards financial support and free advice. Charities and local councils may also offer grants or help with energy debts.