Millions of Britons face higher energy costs from today as the Ofgem price cap rises by 13%, adding £221 to the average annual bill. The increase, which takes effect on 1 July 2026, raises the cap to £1,862 per year for typical households paying by direct debit in England, Scotland, and Wales, up from £1,641.
How the Price Cap Works
The price cap limits the maximum unit rates and standing charges energy firms can apply, but it does not cap total bills. Households using more energy will pay more. Ofgem attributes the hike to elevated wholesale gas prices, driven by the ongoing conflict in the Middle East. The new cap remains below the £2,500 ceiling imposed by the government during the 2022 energy crisis.
Urgent Advice for Consumers
Energy experts urge households to submit meter readings today to ensure accurate billing. Without a reading, suppliers may estimate usage based on higher winter consumption, leading to overpayment. The average increase amounts to £18 per month.
Warning from National Energy Action
National Energy Action (NEA) warns that the cap rise will intensify financial pressure on vulnerable households. Chief executive Adam Scorer said: “The price cap rise should be a red energy warning. Energy inefficient homes take lives in winter and will increasingly threaten the most vulnerable in summer.” He added: “Fuel poverty means many cannot experience a comfortable and safe temperature at home... This is a public health emergency for the most vulnerable.”
NEA fears tighter debt collection and increased use of forced prepayment meters, which could cut off households from energy altogether. Scorer called for urgent debt relief, urging expansion of Ofgem’s Debt Relief Scheme: “The right response is to scale debt relief... reducing harm and lowering costs across bills.”
Government Response
Minister for energy consumers Martin McCluskey acknowledged rising bills but highlighted government action: “The action we took at the budget, which has taken an average £150 of costs off energy bills, is now factored into bills for the years to come.” He also noted the expanded Warm Home Discount scheme, which helped around six million households last winter and will remain in place through the decade.
McCluskey said the government would continue to monitor the situation and plan for winter contingencies, while pursuing clean power to reduce bills long-term.
