Today (Thursday 1 October) the energy price cap goes up again. It’s not the biggest rise we’ve seen, but the timing couldn’t be worse: the nights are drawing in, the heating’s about to go on (if it hasn’t already), and forecasters are warning that January could be worse.
So if you’ve been meaning to sort your energy bill out, this is the week to do it.
TL;DR
- The price cap rises 4% today (1 October). A typical household paying by Direct Debit now pays £1,723 a year, up £60 (about £5 a month)
- Gas is doing the damage, up around 8%. Electricity stays broadly flat because the government has taken VAT off electricity bills until March
- January could be worse. Analysts expect another rise of around 9%, to roughly £1,872
- If you’re on a fixed deal, you’re protected until it ends. Check the date
- Take a meter reading today
What’s Changing Today (1 October)?
Ofgem, the energy regulator, has confirmed the price cap is rising from £1,663 to £1,723 a year for a typical household that uses gas and electricity and pays by Direct Debit. If you’re on a prepayment meter, the typical figure is slightly lower, at around £1,678.
The technical reason for the increase is wholesale gas prices. The ongoing conflict in the Middle East has pushed global gas markets up, and the UK is still heavily exposed to them. That’s why gas bills are rising by around 8% while electricity stays broadly the same, helped by the government removing VAT from electricity bills between 1 October 2026 and 31 March 2027.
Just remember, the price cap is not a cap on your bill. It caps the price you pay per unit of energy and the daily standing charge. Use more, pay more. The £1,723 is just what a “typical” household would pay.
And January Could Be Worse…
Energy analysts Cornwall Insight are forecasting the cap will rise again in January, by around 9% to about £1,872. That’s roughly £150 a year more than the new October level, landing right in the coldest months.
Ofgem will confirm the January figure in November. But even if things calm down globally, analysts say falling bills in January are unlikely, because European gas stocks are low and winter demand is high.
Should You Switch or Stick?
If you’re on a standard variable tariff (the one you’re automatically on if you’ve never switched, or your fix has ended), it’s worth comparing fixed deals now.
- Fix at or below £1,723? You’d be protected from the January rise.
- Between £1,723 and £1,872? You’d pay a bit more now but could still come out ahead over winter if the forecast is right. Weigh up the peace of mind against the risk that prices fall later.
- Above £1,872? Probably not worth it right now. Sit tight on the cap and check again in November.
These figures are for a typical household, so use your own annual usage (it’s on your bill or in your supplier’s app) when you compare. Check for exit fees, and use an Ofgem-accredited comparison site. Switching usually takes about five working days, and your supply won’t be cut off while it happens.
If you’re on a fixed deal already (around 11 million households are) you’re not affected by this rise. But find out exactly when your fix ends, because if it lands in January, you’ll roll straight onto the higher cap.
5 Ways to Cut Your Bill This Winter
- Take a meter reading on 1 October. Submit it to your supplier so you’re not billed at the new higher rate for energy you used in September
- Turn your thermostat down by one degree. Most people won’t notice the difference, but your bill will
- Deal with draughts. Draught excluders, curtains closed at dusk, and letterbox brushes all help
- Only heat the rooms you use. Radiator valves are your friend
- Wash at 30°C, run full loads and switch off at the wall. Small habits, real savings over a winter
If You’re Struggling
If you’re worried about keeping up with your energy bills, call your supplier early. Don’t wait until you’re behind. Suppliers are required to offer affordable repayment plans, and many have hardship funds. Check whether you qualify for the Warm Home Discount, and if you need free, impartial help, Citizens Advice can support you.
This guide is for general information only and does not constitute financial advice. If you need advice tailored to your personal circumstances, please speak to an authorised financial adviser. Figures are correct at the time of writing and are based on Ofgem’s price cap for 1 October to 31 December 2026 and Cornwall Insight’s January 2027 forecast.