TL;DR
Ofgem has confirmed the energy price cap will rise from £1,641 to £1,862 a year for a typical dual-fuel household paying by direct debit, an increase of £209 from 1 July 2026. The cap is reviewed again on 1 October 2026.
The Ofgem default tariff cap will rise by 13 per cent on 1 July 2026, the regulator has confirmed, taking the typical annual dual-fuel bill from £1,641 to £1,862. The increase affects around 22 million households on standard variable tariffs across England, Scotland and Wales and adds roughly £18 a month to a typical bill.
What the new cap level looks like
Ofgem sets unit rates and standing charges for each fuel and region. From 1 July 2026 the typical electricity unit rate moves higher and the standard standing charges rise in most regions. The headline £1,862 figure assumes typical use of 2,700 kWh of electricity and 11,500 kWh of gas, paid by direct debit.
Customers paying by standard credit or prepayment pay slightly different rates under the cap rules. Prepayment customers continue to pay broadly the same as direct debit households since the 2025 levelling reforms removed the long-standing prepayment premium.
Who is affected by the rise
The cap applies to anyone on a default or standard variable tariff. Households who have not switched supplier or chosen a fixed deal sit on the standard tariff by default and pay cap rates. Ofgem estimates about 22 million homes are covered.
Households on fixed deals are not affected during the term of their fix. Those on tracker or time-of-use tariffs continue to follow the contract rules with their supplier.
Why the cap is going up
Ofgem attributes the rise to higher wholesale gas costs since the previous cap review and to ongoing investment in the energy network. Wholesale prices have remained sensitive to global supply pressures since the 2022 energy crisis and have not returned to pre-2021 levels.
Network costs and policy costs, which fund renewable obligations and social schemes such as the Warm Home Discount, also feature in the cap calculation. The breakdown is published in the regulator's cap decision letter.
What households can do before 1 July
The Energy Saving Trust and Citizens Advice both encourage households to take a meter reading on 30 June or 1 July so that consumption sitting at the old rates is billed at the old rates. Submitting the reading through the supplier's app or website is sufficient.
Households on standard variable tariffs can compare fixed deals on Ofgem-accredited comparison sites such as Citizens Advice's energy comparison tool. Any fixed deal below the new cap level offers a saving against July rates, though exit fees and term length should be checked.
Support available for struggling households
The Warm Home Discount provides a £150 credit against electricity bills for eligible pension credit and low-income households and re-opens each autumn. Households on benefits should check eligibility through the gov.uk Warm Home Discount portal.
Suppliers also run hardship funds. British Gas, Octopus, EDF, E.ON and Scottish Power each operate grants or payment-plan schemes for customers in arrears. Citizens Advice runs a free phone line on 0808 223 1133 for households worried about bills.
Key facts
- New cap takes effect 1 July 2026.
- Typical dual-fuel annual bill rises from £1,641 to £1,862.
- Around 22 million households on default tariffs are covered.
- Cap is reviewed again on 1 October 2026.
- Warm Home Discount continues to provide £150 for eligible households.
FAQ
How much will the typical bill rise from 1 July?
Ofgem says the typical dual-fuel household paying by direct debit will see annual bills rise from £1,641 to £1,862, a £209 annual increase or about £18 a month. Actual bills depend on individual usage.
Will the price cap fall again later this year?
Ofgem reviews the cap every three months. The next review is on 1 October 2026, with announcements typically published in late August. Wholesale prices, network costs and policy charges all feed into the calculation.
Should I switch to a fixed deal before July?
A fixed deal can offer protection if rates rise further, but each household's situation differs. Check fixed deal unit rates and standing charges against the new cap level and the supplier's exit fees before deciding.
How do I take a meter reading before the cap change?
Submit a meter reading on 30 June or 1 July through your supplier's app or website. This makes sure consumption before the cap change is billed at the old rates and after the change at the new rates.
