Energy Bills to RISE by £221 from July – Here’s How to Save Now

Energy bills will fall by 13% for millions of households in July, the largest increase for summer since the energy crisis in 2022, according to the latest announcement by the UK’s energy regulator Ofgem.

That means from 1 July 2026, households using a typical amount of gas and electricity who pay via Direct Debit will pay £221 more per year.

That’s because the energy price cap will increase from £1,641 to £1,862 per year.

The energy price cap, which is determined by the regulator Ofgem, sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use.

It’s important to note that the energy price cap sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use.

That means the price cap doesn’t limit the size of your actual bill. What you’re charged is estimated by the amount of energy you use.

Ofgem sets the cap every three months and it applies to millions of households in England, Scotland and Wales.

Why are energy bills rising?

The higher-than-expected energy bills are due to the ongoing conflict in the Middle East which has put a strain on wholesale gas supplies.

How can you save on energy bills now?

The price cap change will affect around 33 million customers on a standard variable tariff. Those on a fixed rate tariff won’t be affected.

If you’re on a standard variable tariff or your fixed rate deal is ending soon these steps can help you beat the price cap rise:

• Check your tariff: if you’re on a standard variable tariff or your fixed-rate tariff is due to end before 1 July, switching onto a fixed-rate tariff can help you cut the cost of your energy.
• Pay by Direct Debit: Paying by Direct Debit is usually cheaper because you don’t have to pay admin costs. Currently, 7 million customers pay by standard credit but could save around £143 per year by switching to a Direct Debit payment.
• Shop around: price comparison can help you compare lots of energy deals quickly and find the best value. Remember to watch out for exit fees which could make your tariff more expensive if you want to switch again before the deal ends.
• Get energy efficient: Cutting back on energy waste by switching off lights, appliances and technology when they’re not in use can help you save.
• Apply for support: check if you’re eligible for support from the government such as the Warm Home Discount or your energy supplier, to help you afford the cost of heating and powering your home.
• Create a budget: making a budget can help you identify other areas in your life to try and make a saving. Budgeting apps can help you automate the process and get started on cutting costs.

What happens if I can’t pay my energy bills?

If you’re worried that you won’t be able to pay your energy bills, it’s important to act quickly to get help.

Contact your energy supplier as soon as possible to arrange a payment plan which you can reasonably afford. Customers on a prepayment meter can request emergency credit if they’re unable to top up.

If you’re already struggling with your bills and have fallen into debt, contacting organisations such as StepChange or Citizens Advice can help you access free advice.