Overview

• From 1 October to 31 December, the cap for a typical dual‑fuel direct‑debit household rises from £1,720 to £1,755, adding about £35 a year or £2.93 a month.
• Roughly 20 million customers on default tariffs will be affected, while around 37% on fixed deals are protected from the rise.
• Ofgem says non‑wholesale factors drive the increase, including higher electricity balancing costs (about £1.23 per month) and the Warm Home Discount extension (about £1.42 per month).
• The government confirms the £150 Warm Home Discount will reach about 6 million households this winter after adding eligibility for 2.7 million more people.
• The cap limits per‑unit rates, not total bills, and Ofgem advises that shopping for fixed tariffs can save over £200 versus the new cap; paying by direct debit typically costs about £136 less per year than standard credit.