Households on standard variable energy tariffs will see their costs increase from 1 October 2026 after Ofgem announced a new Energy Price Cap level for the winter period. The regulator has confirmed that the cap will rise by 4%, taking the annual bill for a typical dual-fuel household paying by Direct Debit to £1,723.
For the average home, that represents an extra £60 a year, or around £5 a month, compared with the current cap level.
What's driving the October 2026 increase?
The latest change has largely been attributed to higher wholesale gas prices, which continue to influence the cost of supplying energy to UK homes.
However, households have been shielded from an even larger increase. The Government's temporary removal of VAT on domestic electricity bills has helped offset some of the pressure, with Ofgem estimating that bills could otherwise have been around £45 higher.
A reminder: what is the Energy Price Cap?
Set by Ofgem, the Energy Price Cap limits the maximum unit rates and standing charges suppliers can charge customers on default and standard variable tariffs.
It is important to note that the cap does not place a limit on your total bill. Instead, it restricts the rates suppliers can charge for energy usage.
The cap is reviewed every three months and takes into account factors such as wholesale energy prices, network costs and policy charges. Your actual bill will still depend on how much gas and electricity you use.
What does the new cap mean for households?
For a typical household paying by Direct Debit:
Annual energy costs increase from £1,663 to £1,723
Bills increase by approximately £60 per year
That's equivalent to around £5 extra each month
The new cap is 4% higher than the July to September level
Although energy costs remain well below the peak levels seen during the energy crisis, today's announcement means many households will face higher bills as demand for heating typically increases during the colder months.
Energy Price Cap rates: October to December 2026
| Energy type | October-December 2026 | July-September 2026 |
|---|---|---|
| Gas | 7.97p per kWh / 29.68p standing charge per day | 7.33p per kWh / 29.04p standing charge per day |
| Electricity | 26.32p per kWh / 54.83p standing charge per day | 26.11p per kWh / 57.19p standing charge per day |
Figures shown are average Direct Debit rates across Great Britain. Electricity rates reflect the Government's temporary VAT removal from domestic electricity bills. Regional variations apply.
Should you consider switching?
With the cap moving higher, now could be a good time to review your current tariff.
A number of fixed-rate deals are currently available at prices below the newly announced cap, meaning some households may be able to lock in lower costs before winter arrives.
A few simple steps could help keep costs under control:
Compare available fixed tariffs with your current deal.
Check whether switching suppliers could save money.
Submit a meter reading before the new rates take effect.
Review any support schemes or discounts you may be entitled to.
Support available for struggling households
If you're concerned about paying your energy bill, assistance may be available through:
The Warm Home Discount Scheme (£150 for eligible households).
Supplier hardship and support funds.
Affordable repayment plans.
Emergency credit arrangements for prepayment meter customers.
Ofgem is encouraging anyone worried about energy costs to contact their supplier as soon as possible to discuss the support options available.
The bottom line
The Energy Price Cap will increase from 1 October 2026, taking the annual cost of energy for a typical household to £1,723. While the rise is considerably smaller than the increase seen over the summer, it still means higher costs for millions of households heading into winter.
For consumers, the coming weeks may be a good opportunity to compare tariffs, explore fixed-price options and ensure they are receiving any support they are entitled to before colder weather arrives.
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Remember the content provided in this article is for information purposes only and should not be considered as advice.