Money Matters: Energy bills set to rise – what you can do now
In this week’s Money Matters column, Chloe Meredith, Housing Plus Group’s Energy Advisor, looks at this week’s announcement that the energy price cap will rise again from October – and more importantly, what you can do if you’re concerned about the impact on your household budget.
Energy regulator Ofgem has this week announced that the price cap will increase by 4% from 1 October to 31 December 2026.
For a typical household using gas and electricity, and paying by direct debit, this means an annual bill of around £1,723 – an increase of £60 a year, or around £5 a month if you use a typical amount of energy.
But there is an important point to remember – the price cap is not a cap on your total bill. It limits the amount your supplier can charge for each unit of energy you use, as well as the standing charge. Your actual bill will depend on how much energy your household uses, where you live and how you pay.
The increase will mainly affect households on a standard variable or default tariff. If you are on a fixed deal, your prices are usually protected until that deal comes to an end. Ofgem says around 35% of households are currently on fixed tariffs and will not be impacted by this rise.
With the colder months approaching, news of another increase may feel worrying – particularly for anyone already finding it difficult to keep up with their bills. But there are some practical steps you can take:
1) Check what tariff you are on.
Have a look at a recent energy bill or your online account to find out whether you are on a fixed or variable tariff, when any deal ends and what your current rates are. Don't assume that staying with your current supplier and tariff is your best option. It's worth comparing what else is available. Different tariffs may offer better value.
2) Don’t wait until you’re in debt to ask for help.
If you are struggling to pay your energy bills, get in touch with your supplier as soon as possible. Ofgem says suppliers must offer support to customers who cannot afford to pay, which could include agreeing an affordable repayment plan or providing emergency credit, depending on your circumstances.
3) Look at the small changes that could make a difference.
As we move towards the colder months, now is a good time to think about how efficiently you are using energy. Only heating rooms you are using, and switching off appliances when they are not in use can help to reduce unnecessary energy use. A smart meter can also help you understand where and when you are using energy, making it easier to spot opportunities to cut back.
4) Are you getting all the support you are entitled to?
Depending on your circumstances, you may be eligible for help with energy costs or other household expenses. It's always worth checking, particularly if your circumstances or income has changed recently.
5) Ask for support before things reach crisis point.
Debt can feel overwhelming, but you do not have to tackle it alone. Speaking to a money and debt advisor can help you look at your wider finances, deal with priority bills and explore the support that's available to you.
This week's announcement is undoubtedly unwelcome news for most of us, particularly with winter on the horizon. But taking a bit of time now to understand your tariff, check your bills and ask for help early could put you in a better position for the months ahead.
If you are worried about your energy bills or usage, speak to your energy supplier or a charity such as Marches Energy Agency, Energy Saving Trust, LEAP (Local Energy Advice Partners) and National Energy Action.
Housing Plus Group’s customers can also speak to us in the Energy Advice team for support and practical advice. Our Energy Advice service is funded by the Cadent Foundation.
27th August 2026