The energy price cap went up on 1 July 2026 – but what does that mean for you?
The energy price cap affects households on standard variable tariffs. On this type of tariff, the price you pay for each unit of gas or electricity can change when energy prices go up or down. This means your bills can rise or fall, rather than staying the same for a fixed period.
The cap is set by Ofgem, the energy regulator for Great Britain, and reviewed every three months. It limits the maximum amount suppliers can charge for each unit of gas and electricity, and for daily standing charges. It does not limit your total bill.
For a typical household using both gas and electricity and paying by direct debit, the energy price cap is now £1,862 a year for the period from 1 July to 30 September 2026. That is a 13% increase, or around £221 more a year, compared with the previous price cap.
If you are on a standard variable tariff, your energy costs are likely to go up unless you use less energy or move to a different tariff.
While you cannot control energy prices, you can reduce how much energy you need to buy. Improving your home’s energy efficiency can help lower your energy use without compromising on comfort. Generating some of your own electricity through solar panels or heat pumps can also make you less reliant on electricity from your supplier.
Three ways to help reduce your energy bills
Could solar panels help you save money?
Solar panels can be a practical way for many households to reduce their energy costs and make their home more energy efficient.
Solar panels generate electricity from daylight. This means you can buy less electricity from your energy supplier. They work all year round, even on cloudy days.
How much you might save depends on your home and how much electricity you use. Energy Saving Trust’s solar panel calculator shows some households could save around £495 a year as a result of lower electricity bills and payments for selling extra to the grid.
Battery storage can help you save more money, by storing solar electricity for the times you need it. Depending on your home and energy use, battery storage can help households save £200 – £400 a year. You can also sell spare electricity back to the grid to earn money.
Could a heat pump help lower heating costs?
Heating is one of the biggest energy costs in most homes.
A heat pump is an efficient way to heat your home and hot water. It takes heat from the air or ground outside and uses it to warm your home.
Whether a heat pump saves you money depends on:
- your current heating system
- how well your home is insulated
- how you use energy.
Could a different tariff save you money?
The best tariff for you depends on how and when you use energy.
A fixed tariff locks in your energy prices for a set period. This can give you more certainty about what you’ll pay each month.
A time of use tariff charges different rates at different times of day. Electricity is usually cheaper during off-peak periods. If you can shift some of your energy use to these times, you may be able to reduce your costs.
Time of use tariffs may work well if you:
- charge an electric vehicle at home
- have battery storage
- have solar panels
- can run appliances during cheaper periods.
It’s worth checking regularly whether you’re still on the most suitable tariff for your circumstances.
What’s the best way to reduce energy bills?
There’s no single solution that’s right for every home.
Every home is different. That’s why personalised advice can help you understand which improvements could make the biggest difference.
Use Homewise to get recommendations tailored to your home and find out what steps could work best for you.
Can I speak to someone?
Our friendly, expert advisors are here to answer your questions and share helpful, impartial information for your home.
Call us free on 0808 1968268 or fill out our contact form and we’ll get back to you with the information you need.