On 1 July 2026 the energy price cap rose by 13% — pushing the typical household energy bill to £1,862 per year. Here is exactly what changed, who was affected and what you can still do to reduce your bills.
⚠️ What changed on 1 July 2026
The energy price cap rose by 13% from 1 July 2026 — the largest rise since the energy crisis of 2022. The typical annual bill increased from £1,641 to £1,862 for a household paying by direct debit. Furthermore the October 2026 cap is predicted to rise by a further 2%.
In this guide
What changed on 1 July 2026?
On 1 July 2026 Ofgem’s energy price cap rose by 13% — the largest single quarterly increase since the height of the energy crisis in 2022. The cap covers the period from 1 July to 30 September 2026 and set new maximum unit rates and standing charges for all households on standard variable tariffs.
The typical annual energy bill for a household paying by direct debit rose from £1,641 to £1,862 — an increase of £221 per year or approximately £18 per month. Furthermore the rise affected around 33 million domestic energy accounts across England, Wales and Scotland.
What are the new unit rates from July 2026?
The new unit rates and standing charges that came into effect on 1 July 2026 for direct debit customers are:
Rates are averages for England, Wales and Scotland including VAT at 5%. Rates vary by region.
Why did energy bills rise in July 2026?
Ofgem attributed the July 2026 price cap rise primarily to higher wholesale gas prices driven by ongoing conflict in the Middle East. Wholesale energy prices rose sharply in February and March 2026 after the conflict damaged energy infrastructure and disrupted oil and gas supply through the Strait of Hormuz — a critical route for global energy trade.
Although a temporary ceasefire provided some relief to markets it was not sufficient to bring wholesale prices down enough to prevent the cap rising. Consequently UK households bore the cost of global market volatility through higher bills from July.
🌍 Middle East conflict — disrupted gas supply routes and pushed wholesale prices sharply higher
📈 Wholesale prices rose 28% — over the three months prior to the cap announcement
⚡ Gas rose more than electricity — gas bills rose by 24% while electricity rose by around 5%
🔌 Network cost increases — the costs of maintaining gas pipes and electricity cables also contributed to the higher cap
Who was affected by the July price rise?
The July price cap rise automatically affected every household on a standard variable tariff. Around 60% of UK energy accounts — approximately 19 million direct debit households — were on variable tariffs when the cap rose and consequently saw their bills increase automatically from 1 July.
⚠️ Bills rose automatically: Households on standard variable tariffs — the default tariff most people are on if they have never switched
⚠️ Prepayment customers: The prepayment cap also rose — to £1,620 per year for typical use from 1 July
✅ Unaffected: The 40% of households already on fixed tariffs — around 22 million accounts — were protected from the July rise for the duration of their fixed deal
Fuel poverty impact: Almost 5.5 million homes are now spending more than 20% of their income on energy bills following the July rise — up from 4.3 million in April. Furthermore 13.5 million households are now spending more than 10% of their income on energy.
How much did bills rise by household size?
What happens in October 2026?
The October 2026 price cap will be announced by Ofgem by 26 August 2026. Early analyst predictions suggest a further rise of around 2% — which would push the typical annual bill to approximately £1,900. Consequently households on variable tariffs face the prospect of another increase in the autumn.
The ceasefire in the Middle East has provided some breathing room for energy markets — however analysts have cautioned that this is a pause rather than a resolution. Furthermore global energy supply remains volatile and prices could move significantly before October.
What can I do to reduce my energy bills now?
The July rise has already happened — however there are still meaningful steps you can take to reduce what you pay:
Switch to a fixed tariff
Some suppliers are currently offering fixed deals at or below the £1,862 cap rate. Locking in now protects you from the predicted October rise. Furthermore if the October cap rises as predicted a fixed deal secured now will save you money for the full term of the deal.
Switch to direct debit
If you currently pay by standard credit — receiving a bill and paying it — switching to monthly direct debit could save around £143 per year. Consequently this is one of the quickest and easiest savings available.
Take advantage of weekend electricity deals
Smart meter customers can access half price or cheaper electricity at weekends through certain tariffs. If you have a smart meter it is worth checking whether your supplier offers this — shifting energy-heavy tasks like washing and dishwashing to weekends can generate meaningful savings.
Reduce your energy usage
Higher unit rates mean every unit you save is worth more. Simple changes — unplugging standby devices, turning the thermostat down by one degree, using energy-efficient appliances — all have a greater financial impact at 26.11p/kWh than they did at lower rates.
Check your eligibility for government support
If you are struggling with energy bills contact your supplier — they are legally required to help. Furthermore you may be eligible for the Warm Home Discount, ECO4 home improvements or emergency credit if you are in difficulty.
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Compare energy deals →Written by the FastSwitch team · Last updated July 2026
FastSwitch is a free UK energy comparison service. We may earn a commission when you switch via our site — this never affects the deals or prices you see. Unit rates shown are averages and may vary by region and payment method.