TL;DR
Households can soften the July cap rise of £209 a year through seven practical steps: meter readings on 30 June, fix-or-stay comparison, time-of-use tariffs, smart meters, eligibility for Warm Home Discount, supplier hardship funds and home energy efficiency.
Households can soften the impact of the 1 July energy price cap rise through seven practical steps that range from one-off actions to longer-term changes in tariff and consumption. The cap rises 13 per cent on 1 July, adding £209 a year to the typical dual-fuel bill, but each household's outcome depends on the rate it sits on and how electricity is used through the day.
Take a meter reading on 30 June or 1 July
Submit a meter reading through the supplier's app or website on 30 June or 1 July 2026. The reading separates pre-cap consumption from post-cap consumption, so the supplier bills the pre-cap usage at the old rate.
Without a reading the supplier estimates the split using typical consumption profiles. Households that use a lot of electricity in June, for example through electric heating or appliances, are likely to pay slightly more than necessary if they let the estimate stand.
Compare fixed deals against the cap
Use an Ofgem-accredited comparison tool such as the Citizens Advice energy comparison tool to model annual cost on the cap and on each available fixed tariff. The comparison should include both unit rates and standing charges.
Fixed deals below the new cap level offer protection against further rises. Households uncertain about future cap movements can pick a 12-month fix rather than a longer term to limit the exit risk if the cap falls later.
Consider a time-of-use tariff
Time-of-use tariffs price electricity by half-hour period. Off-peak rates are significantly cheaper than the cap and peak rates are significantly more expensive. Households who can shift consumption to off-peak hours, including overnight EV charging or smart heating storage, can save money.
Households without flexibility in their consumption pattern should stay on a standard tariff. The Energy Saving Trust publishes case studies showing typical savings against the cap for different household types.
Get a smart meter installed
Smart meters allow accurate billing and unlock time-of-use tariffs. Installation is free through the customer's supplier, and most suppliers offer incentives such as bill credits to encourage uptake.
Generation two SMETS2 meters are the current standard. Older SMETS1 meters can sometimes lose smart functionality after a switch but most are now operating in smart mode through the Data Communications Company network.
Claim Warm Home Discount if eligible
The Warm Home Discount Scheme provides a £150 credit against the electricity bill for eligible Pension Credit and low-income households. Applications open each autumn through the supplier or directly via the gov.uk Warm Home Discount portal.
Eligible households should also check Cold Weather Payment, which provides £25 for each qualifying period of cold weather, and the Household Support Fund operated by local councils.
Use supplier hardship funds
British Gas, Octopus, EDF, E.ON and Scottish Power all run hardship schemes that can write off arrears or fund energy efficiency improvements for eligible customers. Applications are usually through StepChange or Citizens Advice as referrers.
Customers worried about affordability should contact the supplier early. The Energy Ombudsman covers disputes that cannot be resolved with the supplier directly, after a final response or eight weeks have passed.
Improve home energy efficiency
Loft insulation, cavity wall insulation and draught-proofing are typically the highest-impact actions for older UK homes. The Energy Saving Trust estimates that loft insulation alone can save £270 a year for an uninsulated semi-detached home.
Eligible low-income households can apply for funding under the Great British Insulation Scheme and the Energy Company Obligation, both delivered through suppliers and local councils.
Key facts
- Cap rises £209 a year for a typical household on 1 July.
- Warm Home Discount provides £150 against electricity bills.
- Cold Weather Payment is £25 per qualifying period.
- Loft insulation saves around £270 a year for a typical home.
- Smart meters unlock time-of-use tariffs.
FAQ
Will taking a meter reading on 30 June actually save me money?
Yes, if your usage is higher than the supplier's typical profile. A reading separates pre-cap and post-cap consumption so the supplier bills pre-cap usage at the old rate rather than estimating the split.
Should I fix my energy deal now?
Compare the fixed rate to the new cap level of £1,862 for a typical household. Fixed deals below the cap offer protection but lock in for the term. Shorter 12-month fixes limit exit risk if the cap falls later.
Is a smart meter worth getting?
Smart meters allow accurate billing and unlock time-of-use tariffs that can reduce bills for households with flexible consumption. Installation is free and most suppliers offer incentives such as bill credits.
How do I apply for Warm Home Discount?
Applications open each autumn through your electricity supplier or directly via the gov.uk Warm Home Discount portal. The scheme provides £150 against the electricity bill for eligible Pension Credit and low-income households.
