Households Could be £480 Worse Off Due To Energy Prices – What Can You Do?

Households using the typical amount of energy could be £480 worse off this year due to the ongoing conflict in the Middle East, according to new analysis from the Resolution Foundation.

Rising energy prices will likely tip living standards into negative territory, the independent think tank found.

The typical household was previously on track for 0.9% income growth, however new forecasts predict an income fall of 0.6%. This leaves households £480 worse off over the course of the current financial year.

It follows warnings from market analysts that energy bills could rise by £322 per year in July as a result of the US-Israel war on Iran.

Although the UK’s energy price cap, which kicked in from 1 April 2026 fell 7% to £1,641, it didn’t factor in the impact of the war on oil and gas supply.

The next price cap, which sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use, is likely to increase significantly as a result.

What can you do to save on energy today?
The following steps can help you get ahead of the upcoming energy bill price rises to limit the effect on your household finances.

Lock in a fixed-rate: switching to a fixed rate energy tariff before the summer energy price cap kicks in could help you save money. So if you’re on a standard variable tariff or a your fixed rate deal is coming to an end before July, shop around for a cheaper deal and lock in the savings.

Use Direct Debit payments: Where possible, opt for Direct Debit payments rather than paying as you go to avoid extra admin costs. You could save around £136 a year by switching to automatic payments.

Use energy-saving hacks: taking steps to make your home more energy efficient could save you hundreds a year. For example, improving the insulation around your home or decreasing energy waste by switching off unused lights and devices.

Are you worried about affording your energy bills?
Households are facing the brunt of rising bills so if you’re worried about energy costs, you’re certainly not alone.

Taking action quickly can help ensure you get the support you need and avoid falling into energy debt.
Contact your energy supplier to explain your situation and see if it’s possible to arrange a payment plan you can afford.

If you’re on a prepayment meter, you might be able to request emergency credit if you’re unable to top up.

Organisations such as StepChange or Citizens Advice can help you access free support if you’re already struggling with your bills or have fallen into energy debt.