Overview
- Ofgem implemented a 4% price-cap rise from October 1, 2026, which lifts the average dual-fuel direct-debit bill to £1,723 and adds about £5 a month for many households.
- The government has temporarily cut the 5% VAT on electricity until March 31, 2027, a measure expected to shave around £45 a year off typical bills.
- Energy UK and major suppliers say those steps are insufficient and have urged the government to deliver targeted rebates, a debt-relief scheme and further levy changes to protect the poorest households.
- Large suppliers including British Gas, Octopus, EDF, OVO, E.ON Next, Utility Warehouse and ScottishPower are offering hardship funds, grants and payment plans to help customers with arrears and immediate needs.
- Analysts warn the January 2027 cap could rise sharply if wholesale gas stays high, with one forecaster projecting about a 16% jump, so ministers’ decisions in the Autumn Budget and Ofgem’s next review will determine how big an impact households face.