Particle.news
Download on the App Store

Ofgem Price Cap Rises to £1,758 on New Year’s Day as Debt Mounts and Some Bills Top the Limit

Debt groups report typical arrears of £1,800, prompting urgent calls for targeted support ahead of planned bill reductions in April.

Overview

  • Ofgem’s cap for 1 January–31 March 2026 is set at £1,758 for a typical dual‑fuel household paying by Direct Debit, a 0.2% rise that only applies to standard variable tariffs.
  • MoneySavingExpert warns some households could pay £136 above the cap if they are billed on receipt, with prepayment averaging £1,711 and policy and network charges pushing up electricity‑heavy bills by 3–4%.
  • Money Wellness reports average unpaid energy arrears of £1,800 among clients, while Uswitch says total household energy debt hit about £780 million and over two million homes plan not to use heating this winter.
  • Advice bodies urge consumers to submit meter readings before the change, check tariffs and smart meter status, and consider switching where appropriate, noting eligibility rules and potential exit fees.
  • The government has signalled an average bill reduction of roughly £150 from April 2026 due to policy changes, but charities and advisers are pressing for immediate measures such as social tariffs and hardship support.