With energy bills set to hit a three year high for millions of households from October, we explain what’s happening, whether prices are likely to come down, and how you could save money on your energy bills now.
Energy bills will rise by 4% in October, when the new energy price cap comes into force, driven by higher wholesale gas prices due to the conflict in the Middle East.
The increase will see the energy price cap rise to £1,723 for a typical household’s gas and electricity use, up from £1,663 for the July to September period.
If you’re on the energy price cap, you may be able to save money on your energy bills by switching to a fixed deal, depending on the tariff you choose and how much energy you use.
Other tariffs are also available, such as discounted price cap tariffs, which typically offer a fixed discount on the price cap for 12 months. So compare your energy deal options today.
Energy prices are set to rise again in October 2026 for households on the energy price cap. This is because the price cap, which is set by Ofgem, will increase by 4% for the period 1 October to 31 December 2026.
For a household with typical usage, paying by Direct Debit, it’s currently set at £1,663 a year but in October this will increase to £1,723.
This figure may look lower than expected – this is because Ofgem has lowered the amount of energy it deems a typical household to use. But remember, the cap is only a limit on standing charges and gas and electricity unit rates, not a cap on how much you’ll pay.
Energy bills latest news: How the Middle East conflict may impact bills
Wholesale energy prices have increased sharply since the start of the conflict in the Middle East.
British households on the price cap saw it increase from £1,477 a year in April, to £1,663 from 1 July, and it will rise further to £1,723 in October.
New Prime Minister Andy Burnham has announced that help will be given to soften the blow, with electricity bills for households in Great Britain not attracting VAT for 6 months from 1 October.
2026 energy price cap predictions
Here are the latest energy price cap predictions:
E.ON’s energy price cap forecast made in August 2026 is for the price cap to increase to £1,941 in January 2027.
EDF’s gas and electricity prices forecast on 26 August 2026 is for the price cap in the UK to increase to £1,932 in January 2027.
British Gas’s forecast on 26 August 2026 is for the price cap in the UK to increase in January 2027 to £1,970.
Cornwall Insight’s price cap prediction made on 25 August 2026 is for the price cap to rise to £1,872 in October 2026.
In late February 2026, before the Middle East conflict started, the energy price cap was predicted to remain around April’s price cap level of £1,477 for the rest of 2026.
How accurate are these energy price cap predictions likely to be?
The further ahead the forecast, the less likely it is to be accurate.
The volatility of global events currently playing out makes it even harder to make an accurate energy price cap prediction. In fact, for a period in March 2026, British Gas stopped making predictions on what may happen with upcoming price caps due to wholesale energy prices changing every day.
Should I fix my energy deal?
If you’re on the energy price cap and you can find a decent saving against the current price cap, it’s likely that you could make substantial savings over the next year, depending on the tariff you choose, how long it’s fixed for, and how much energy you use.
The energy price cap is rising in October and there are predictions that it could increase further in January 2027, although the outlook that far ahead is highly uncertain.
If you fix your energy deal you’ll also be protected from any future price hikes for the duration of your tariff. However, there is a risk that if energy prices fall over the term of your fixed tariff, you could end up paying more overall. So if you’re considering a fixed tariff, check any exit fees for leaving the deal early.
Alternatives to fixing
There are also energy deals available that track under the energy price cap or that follow the energy price cap’s unit rates but have lower standing charges.
This table illustrates how much energy prices have changed in recent months:
Time period
Energy price cap amount
Current cap: 1 Jul – 30 Sep 2026
Up 13% to £1,663
Future: 1 Oct – 31 Dec 2026
Up 4% to £1,723
Current energy price cap rates in September 2026
If you’re one of the 22 million households in the UK on a standard variable tariff, here’s how the new price cap will change how much you pay:
Type
Current price cap rates from 1 July to 30 Sep 2026
Future price cap rates from 1 Oct to 31 Dec 2026
Gas
Unit rate: avg. 7.33p per kWh Standing charge: 29.04p per day
Unit rate: avg. 7.97p per kWh Standing charge: 29.68p per day
Electricity
Unit rate: avg. 26.11p per kWh Standing charge: 57.19p per day
Unit rate: avg. 26.32p per kWh Standing charge: 54.83p per day
Am I on the energy price cap?
If you’re wondering if this affects you, the Ofgem price cap applies to around 21 million households on variable energy tariffs – so it sets what two thirds of homes in England and Wales will pay. You’ll know you’re affected if you are on a tariff called something like standard, flexible or variable rate rather than fixed.
How the energy price cap works
The energy price cap limits the unit rates and standing charges energy suppliers can charge for their standard tariffs.
However, the energy price cap figure is based on the usage of a ‘typical’ household using gas and electricity and paying by Direct Debit.
It’s not the maximum you’ll pay. If you use more energy than a typical household, you’ll pay more than the price cap and if you use less, your bill will be lower.
If you fix your energy tariff now, there are currently fixed deals available that are lower than the current price cap. The price cap is set to increase again in October and current forecasts suggest it could increase again in January 2027, although forecasts can change. So you could potentially make substantial savings compared with staying on the current energy price cap, depending on the tariff you choose and how much energy you use.
Whether switching to a fixed tariff is the best option for you will depend on your risk appetite and how good the deal is.
It’s also a good time to check for the best deal if you’re moving house, if your current supplier has poor customer service or you want a specialist tariff such as an EV tariff.
When comparing deals, check how long the fixed deal lasts for and whether you’ll need to pay an exit fee if you leave early.
Paula Higgins, Chief Executive of the HomeOwners Alliance, says: “People are rightly very concerned over how much the energy price cap rose by on 1 July. We advise people to shop around and compare tariffs to ensure you’re on the best deal for you.”
Many households believe standing charges are unfair as they don’t have any control over how much they’re charged.
However, this move by Ofgem may not lead to big savings because these costs will be added to the unit cost of energy instead.
Also, some charities say the plans are complex and could leave some vulnerable customers to make the wrong choice.
Can I get help with energy bills?
Yes, some help is available for energy bills. For example, individual energy companies have hardship funds. Also, if you’re a pensioner and weren’t eligible for the winter fuel allowance last year, you may be eligible this year.
In March 2026, former Chancellor Rachel Reeves said the government planned to help “those who need it most” if energy bills spiral due to the Middle East conflict.
Detail of exactly who could be helped by the UK government and how remains unclear. We’ll update this page as soon as more information is released.
In June 2025, then chancellor Rachel Reeves confirmed that pensioners in England and Wales with an annual income of £35,000 or below will now be eligible – around nine million people.
More than 10 million pensioners had lost the payment, worth up to £300 last year, when it was paid only to those on pension credit. Find out more in our guide on Energy grants and how to get them.
Here are the historic price changes to Ofgem’s energy price cap, which shows how energy bills have increased and decreased in recent years.
Price cap period
Ofgem energy price cap
Price cap change vs previous period
January – March 2026
£1,758
+0.2%
October-December 2025
£1,755
+2%
July – September 2025
£1,720
-7%
April – June 2025
£1,849
+6.4%
January – March 2025
£1,738
+1%
October – December 2024
£1,717
+10%
July – September 2024
£1,568
-7%
April – June 2024
£1,690
-12%
January – March 2024
£1,928
+5%
October – December 2023
£1,834
-7%
July – September 2023
£1,976
-37%
April – June 2023
£3,116*
-23%
January – March 2023
£4,059*
20%
October – December 2022
£3,371*
80%
Summer 2022
£1,877
54%
Winter 2021/22
£1,216
12%
Summer 2021
£1,084
9%
Source: Ofgem data. *This was replaced by the £2,500 Energy Price Guarantee
How to keep energy bills low
Once you’ve shopped around for the best energy deal, the other way to save on energy bills is to use less. You can do this by:
Insulating your home: There are all sorts of ways you can make your home more energy efficient from relatively inexpensive and very effective options like installing loft insulation, to more expensive undertakings like fitting double glazing or replacing your boiler. See if you can get a grant for a boiler upgrade and whether you can access any other help with our guide on energy grants. For more information see also our guide on how to make your home more energy efficient.
Draught-proofing your home: Professional draught proofing of windows, doors and blocking cracks in floors and skirting boards can cost around £250, but can save around £45 a year on energy bills. DIY draught proofing can be much cheaper. For this and more affordable tips, see our guide on How to keep your house warm for less.
Turn down your thermostat: Turning it down by 1 degree could cut your heating bills by up to 10%. You can also cut your heating bills by installing certain heating controls. If you don’t already have a room thermostat, installing one could save up to £70 a year. And consider getting a smart thermostat, which allows you to control your heating from your smartphone or tablet.
