UK energy bills will rise again from 1 July 2026 after Ofgem confirmed a 13% increase in the Energy Price Cap, pushing the average household bill to £1,862 per year.
The latest energy price cap rise means typical household energy costs will increase by around £221 annually, adding further pressure to UK households.
Why is the energy price cap going up in July 2026?
The Ofgem energy price cap increase has been driven primarily by higher wholesale gas prices.
In particular, continued tensions in the Middle East have contributed to volatility in wholesale energy markets.
What is the Energy Price Cap?
The Energy Price Cap is set by Ofgem and limits the maximum amount energy suppliers can charge per unit of gas and electricity, plus standing charges.
It does not cap your total energy bill.
The cap applies to households on standard variable tariffs and is updated every three months to reflect changes in wholesale energy costs, network charges and policy costs.
Your actual energy bill depends on usage and households consuming more energy will pay significantly more than the headline average.
How much will UK energy bills increase?
For a typical dual-fuel household paying by Direct Debit, the July 2026 energy price cap increase means:
Average annual bill rises from £1,641 to £1,862
Increase of £221 per year
Equivalent to around £18 per month
13% rise compared with the previous price cap period
While this remains below the peak energy bills seen during the energy crisis, it is a clear reversal of recent price stabilisation.
Energy Price Cap rates July–September 2026
| Energy type | New cap rates | Previous cap rates |
|---|---|---|
| Gas | 7.33p per kWh / 29.04p daily standing charge | 5.74p per kWh / 29.09p daily standing charge |
| Electricity | 26.11p per kWh / 57.19p daily standing charge | 24.67p per kWh / 57.21p daily standing charge |
All figures are averages and include 5% VAT. Regional variations apply.
What should households do?
Households may want to review their energy tariffs and check whether switching could reduce costs.
Key actions include:
Comparing fixed energy tariffs vs the price cap
Checking if cheaper dual-fuel deals are available
Submitting an up-to-date meter reading before prices change
Reviewing eligibility for energy bill support schemes
Help with energy bills in the UK
Households struggling with rising energy costs may be eligible for support including:
Warm Home Discount (£150 credit for eligible households)
Energy supplier hardship funds
Payment plans based on affordability
Emergency credit for prepayment meters
Early contact with suppliers is recommended if you are worried about paying your energy bills.
Summary: UK energy bills rise again in July 2026
The July 2026 Energy Price Cap increase will raise average household energy bills to £1,862, an increase of £221 per year.
The 13% increase is expected to be felt across millions of homes across the UK.
The general advice is to review your tariff, consider fixed deals to see if it is worth changing and check available support to manage rising energy costs.
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Remember the content provided in this article is for information purposes only and should not be considered as advice.