(Image: Yui Mok/PA Wire)
Millions of households face another squeeze on their finances this winter after the energy price cap was raised by 4%.
Ofgem has confirmed the typical annual bill will rise by £60, taking the price cap to £1,723 a year from October 1 for a typical household using gas and electricity.
That works out at around £5 more a month, although the actual amount paid will depend on how much energy a household uses.
The increase means households face a more expensive winter just as many prepare to switch their heating back on.
The quarterly energy price cap will rise by 4% from 1 October 2026.
This will be an increase of around £5 per month for the average household.
This is a cap on energy unit price plus standing charge, not a cap on total bills.
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— Ofgem (@ofgem) August 26, 2026
Ofgem said higher wholesale gas prices, driven by the ongoing conflict in the Middle East and volatile global markets, are behind the rise.
Neil Kenward, Ofgem’s director general for markets, said: “High international gas prices are continuing to drive energy costs in the UK.
“We welcome the Government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter."
Further increases likely for January 2027
Richard Neudegg, director of regulation at Uswitch, warned that the increase could make for a difficult winter.
He said: “This is going to be another difficult winter. For price cap customers, gas costs will be almost 27% higher than the same period last year, with the increase hitting just as the heating is due to go on.
“The Middle East conflict continues to impact wholesale gas prices, and ongoing supply challenges are set to hammer household bills as winter demand looms.
“Over half of households say they are already worried about paying for heating this winter. And now, those on standard tariffs may face a double blow on bills, with suppliers already pointing to another rise in January.”
Six ways to cut your energy bills
1. Check your tariff
With the October increase approaching, households should check whether their current deal remains competitive.
Some fixed tariffs are currently available for less than the October price cap, although the best option will depend on individual circumstances.
2. Check for energy grants
Households struggling with bills could be entitled to help from their energy supplier.
Support varies between suppliers and depends on individual circumstances, with grants potentially worth hundreds of pounds.
3. Put your boiler into summer mode
If you are not using central heating yet, check whether your boiler has a summer setting.
This allows hot water to continue running while central heating is switched off, potentially saving households up to £20 a month where heating has been running unnecessarily.
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4. Switch off appliances
Leaving electrical items on standby can add to household energy costs.
The Energy Saving Trust says switching appliances off rather than leaving them on standby could save around £45 a year.
5. Avoid the tumble dryer
While the weather remains warm, hanging clothes outside instead of using a tumble dryer can cut energy use.
The Energy Saving Trust says line-drying clothes during the summer months could save around £50 a year.
6. Wash clothes at 30°C
Washing clothes at a lower temperature can also help reduce energy consumption.
Washing at 30°C and doing one fewer load each week could save around £27 a year.
How do you save energy at home? Tell us in the comments below...