A typical household on a standard variable energy tariff will pay about £60 more a year from 1 October 2026, taking Ofgem’s headline price-cap figure to £1,723.
That works out at roughly £5 a month for a home using Ofgem’s typical amount of gas and electricity and paying by Direct Debit. Your own change could be quite different, however, because almost all of the increase comes from gas.
The cap applies in England, Scotland and Wales until 31 December. It limits unit rates and daily standing charges rather than placing a maximum on your total bill, so using more energy will still cost more.
Gas prices account for almost all of the £60 increase
Ofgem’s average Direct Debit rates show a sharp difference between the two fuels. From 1 October:
- Electricity rises from 26.11p to 26.32p per kilowatt hour (kWh), while the average standing charge falls from 57.19p to 54.83p a day.
- Gas rises from 7.33p to 7.97p per kWh, while the average standing charge increases from 29.04p to 29.68p a day.
For Ofgem’s typical annual use of 2,500kWh of electricity and 9,500kWh of gas, the electricity portion is broadly unchanged while the gas portion adds about £63. Together, the published typical bill rises from £1,663 to £1,723.
The difference grows with gas use. Using the national average rates, a home consuming 5,000kWh of gas and 2,000kWh of electricity would pay about £30 more over a full year at the new rates. At 14,000kWh of gas and 3,800kWh of electricity, the increase would be about £91.
These are illustrations rather than quotes. Your rates also depend on your region, meter and payment method. You can check the exact figures for your area on Ofgem’s unit-rate and standing-charge page.
Electricity VAT is being removed for six months
Domestic electricity will have no VAT from 1 October 2026 to 31 March 2027, while gas will continue to carry 5% VAT. The government says the temporary cut will save households an average of £45 a year and suppliers will apply it automatically.
Ofgem says the October cap would have been around £45 higher without the VAT change. The cut also applies to electricity used by households on fixed tariffs, although their contracted unit price itself does not change.
Who is affected by the October energy price cap?
The cap protects around 20 million households on standard variable or default tariffs in Great Britain, including customers paying by Direct Debit, standard credit and prepayment meter. The £1,723 figure is specifically for a typical dual-fuel household paying by Direct Debit.
Around 11 million households on fixed tariffs are not affected by the new capped rates. Heating oil, heat networks and business energy contracts are also outside the domestic cap, while Northern Ireland operates a separate energy market.
If you are considering a fixed deal, compare its unit rates, standing charges, length and exit fees against your own usage. A deal below the headline cap is not automatically cheaper for every home.
Take a meter reading on 30 September if you need to
If you do not have a working smart meter, take electricity and gas readings on 30 September and keep a dated photo. Sending them to your supplier helps prevent energy used before the change from being estimated at the new rates.
Households with a working smart meter should have readings sent automatically. You do not need to apply for either the price-cap change or the electricity VAT reduction.
If you are struggling to pay, contact your supplier as soon as possible. Ofgem says suppliers must work with customers to agree an affordable payment plan and may also offer payment breaks, more time to pay or access to hardship funds.
The next price cap, covering 1 January to 31 March 2027, is due to be announced by 25 November 2026.