How much is the UK energy price cap from July 2026 and how does it affect low income households?

The cheapest fixed deals on our live panel are typically priced below the £1,663 cap — compare by postcode for today's prices. The increase is driven mainly by higher wholesale gas prices, with gas unit rates up about 24% and electricity up about 5%. The cap limits unit rates and standing charges rather than your total bill, so the more energy you use the more you pay. Low income households should claim every available grant such as the Warm Home Discount, join the Priority Services Register, and check whether a cheaper fixed tariff could lock in a lower rate for the full term.

How can low income households reduce home energy costs quickly?

Low income households can reduce home energy costs quickly by focusing on no- and low-cost actions: turning down the thermostat by 1°C, using heating only in rooms that are in use, sealing draughts around doors and windows, fitting LED bulbs in the most-used rooms, and switching appliances off at the socket instead of leaving them on standby. It also helps to use timers and thermostatic radiator valves efficiently so the heating only runs when actually needed. Where available, checking eligibility for government or supplier support schemes, and comparing whether a cheaper fixed tariff beats the price cap, can also provide rapid help with bills.

What government support is available to help with UK home energy bills if I am on a low income?

In the UK there are several support schemes that may help low income households with home energy bills. These can include the Warm Home Discount, the Winter Fuel Payment, Cold Weather Payments (Winter Heating Payment in Scotland), and cost-of-living support for eligible benefits claimants. Many energy suppliers also offer hardship funds or grants, and all suppliers run a Priority Services Register for vulnerable customers. Eligibility depends on your circumstances, benefits received and your energy supplier, so it is important to check the latest criteria and apply as early as possible.

What protections do I have on a prepayment meter if I am on a low income?

Prepayment customers have specific safeguards. You can ask your supplier for emergency credit so your supply does not cut off if you cannot top up immediately, and there are protections that prevent disconnection at night, weekends and over holidays. If your meter is recovering debt, you can ask for the weekly deduction to be reduced to an affordable amount. Suppliers must follow strict rules before moving anyone to prepayment and should not do so where it is unsafe, such as for households with serious health needs. If you cannot afford to top up at all, your local council or Citizens Advice may be able to issue a fuel voucher. Note that daily standing charges still apply even when you are not topping up.

What simple changes at home can make the biggest difference to my energy bill?

Simple behaviour changes can have a big impact on home energy bills. Examples include: keeping your thermostat at the lowest comfortable temperature, typically around 18–20°C; using weatherstripping or draught excluders on doors; closing curtains at night to keep heat in; washing clothes at lower temperatures such as 30°C; air-drying clothes instead of using a tumble dryer where possible; only boiling the amount of water needed in the kettle; and making sure fridges and freezers are not set colder than necessary. These low-cost actions are especially important for low income households looking to cut their energy spend.

How can I check if I am on the best energy tariff for my circumstances?

To check whether you are on the best energy tariff, review your current tariff details on your bill, including unit rates, standing charges and contract end dates. Compare these with other tariffs from your current supplier and, where switching is available, with tariffs from other suppliers using accredited comparison services. The cheapest fixed deals on our live panel are typically priced below the £1,663 cap — compare by postcode for today's prices. Switching is free and takes about five working days, and you can switch even without a smart meter. Low income households should look for tariffs that match how they actually use energy, consider prepayment options where relevant, check for exit fees, and if struggling to pay, contact their supplier early about affordable payment plans and support.

What should I do if I can’t afford my current home energy bills?

If you cannot afford your home energy bills, contact your energy supplier as soon as possible. Explain your situation and ask about repayment plans, payment holidays, or hardship funds. Suppliers are required to consider your circumstances and work with you to agree affordable payments. You should also check whether you are claiming all the benefits and grants you are entitled to, and whether you qualify for additional help such as the Warm Home Discount or local council support. Seeking free, confidential money or debt advice from trusted organisations such as Citizens Advice, StepChange or National Debtline can help you understand your options and avoid disconnection.

UK Home Energy Cost Saving Advice for Low Income Households

Practical, trusted guidance to help you cut your gas and electricity bills, stay warm, and find support if you are on a low income in the UK.

Struggling with energy bills? You are not alone

The cheapest 12-month fixed deals on our live panel are typically priced below the £1,663 cap, several with no exit fees — run your postcode through the comparison on this page for today's exact prices.

This page brings together clear, simple advice to help you:

Reduce your energy use without sacrificing comfort
Lower your monthly direct debits and tariffs where possible
Access UK grants, schemes and discounts for low income households
Get support if you are in debt or worried about disconnection

We focus only on home energy (gas, electricity and heating) for households in the United Kingdom, not business energy.

Free home energy help

If you are on a low income or receiving benefits, you may qualify for extra support, priority help during emergencies and access to grants.

What the July 2026 price cap means for your bills

The cap limits unit rates and standing charges – not your total bill. The more energy you use, the more you pay.

The figures below are the GB direct-debit averages for the new cap period (1 July to 30 September 2026). Standing charges are fixed daily costs you pay whatever your usage, which is why cutting use alone cannot remove them – checking grants and tariffs matters too.

Element	Unit rate	Standing charge
Electricity	26.11p per kWh	57.19p per day
Gas	7.33p per kWh	29.04p per day

Source: Ofgem price cap for 1 July–30 September 2026. Rates vary by region and payment method.

Quick wins to cut your home energy bills

Simple changes can add up to meaningful savings, especially for low income households.

1. Get on the best tariff you can

Check whether you are on your supplier’s standard variable tariff (the one tracked by the price cap). These often cost more than the cheapest fixed deals.
Ask your supplier if they have a cheaper fixed tariff you can move to – several fixes now undercut the July £1,663 cap (see the table below).
If you are on a prepayment meter, ask if you can switch to a credit meter. This is not always possible, but can sometimes cut costs.
Make sure your supplier has up-to-date meter readings so your bills are based on actual use, not estimates.

2. Control your heating smartly

Where possible, set your main room thermostat between 18–21°C. Lowering the temperature by 1°C can save energy.
Use timer controls so heating only runs when you need it most, such as early morning and evening.
Close curtains at dusk and use draught excluders around doors to keep the heat in.
Bleed radiators that feel cold at the top and avoid covering them with furniture or long curtains.

3. Cut electric use in the home

Switch to LED bulbs wherever you can – they use far less electricity and last longer.
Avoid using the tumble dryer when possible; air-dry clothes indoors with good ventilation.
Fill the washing machine and use 30°C or eco programs to reduce power use.
Turn appliances off at the wall instead of leaving them on standby wherever practical and safe.

Cheapest fixed energy tariffs in June 2026

Switching supplier is free, takes around five working days, and you can switch even without a smart meter. The cheapest fixed deals currently undercut the £1,663 July cap, so moving could protect you from the rise. Figures are typical dual-fuel direct-debit costs per year.

Tariff	Typical annual cost	Exit fee
OVO 2-year Fixed	£1,705	Check at sign-up
British Gas Fixed	£1,719	Check at sign-up

If you are in debt to your supplier, you may not be able to switch away until the debt is cleared, but you can usually still move to a cheaper tariff with your existing supplier – ask them. Before switching, check for exit fees on any deal you are currently locked into.

UK grants and schemes for low income households

If you receive certain benefits or are on a low income, you may qualify for financial help with home energy costs. Availability changes regularly, but common support includes:

Warm Home Discount

The Warm Home Discount is a one-off discount applied to your electricity bill for eligible households each winter. It is usually applied automatically if you receive the Guarantee Credit element of Pension Credit. Other low income households may also qualify, depending on their supplier and circumstances. Check with your supplier well before winter, as some schemes have limited places.

Winter Fuel Payment (Pensioners)

If you were born before a qualifying date and live in the UK, you could receive a Winter Fuel Payment to help with heating costs. This is normally paid automatically if you receive the State Pension or certain benefits.

Cold Weather Payments & Winter Heating Payments

People receiving certain income-related benefits may get a Cold Weather Payment when the temperature in their area stays very low for several days in a row. In Scotland this has been replaced by an annual Winter Heating Payment for eligible households.

Supplier hardship funds

Several energy suppliers run hardship funds and grant schemes that can clear or reduce energy debt for customers in real difficulty. Some grants are open only to that supplier’s customers, while a few accept applications from anyone. Ask your supplier directly what help they offer.

Energy Company Obligation (ECO) & other schemes

Under the Energy Company Obligation and similar schemes, some households can receive free or subsidised insulation, boiler upgrades or heating improvements. These are often targeted at low income or vulnerable households in poorly insulated homes.

Check the latest government guidance or speak to a trusted energy adviser to see what you may be able to claim.

Get personalised help with grants and support

It can be confusing to know which schemes you qualify for, especially as rules and names change over time and differ in England, Scotland, Wales and Northern Ireland.

We can help you understand:

Which benefits and income levels may unlock extra help
What home improvements (like insulation or new heating systems) could be funded
How to speak to your energy supplier about hardship funds, spreading payments or extra support
Whether moving to a cheaper fixed tariff could save you money before the July price-cap rise

Share a few details and we will guide you towards the most suitable options for your situation.

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Energy debt, disconnection and priority help

If you are already behind with payments, you still have rights and options.

Your rights if you cannot afford your bill

Your supplier must work with you to agree a realistic repayment plan based on what you can afford.
They should consider payment plans, payment holidays or payment reductions in difficult circumstances.
Suppliers must take extra care if you are considered vulnerable – for example, due to age, disability, serious illness, or young children in the home.
There are strict rules about disconnection, especially in winter and where vulnerable people are at risk.
Free, confidential debt advice is available from trusted organisations such as Citizens Advice, StepChange and National Debtline – they can help you check benefits and negotiate with suppliers.

If you are worried about being cut off or having to choose between heating and essentials, ask for help as soon as possible. The earlier you act, the more options you are likely to have.

Priority Services Register

All energy suppliers and network operators offer a Priority Services Register (PSR) for customers who need extra support, including many low income households. Joining is free.

You may be eligible if you:

Have a long-term medical condition or use medical equipment at home
Are of pension age or have young children living with you
Live with a disability, mental health condition or communication need
Are in vulnerable circumstances, such as low income or hardship

Being on the PSR can mean advance notice of power cuts, priority help in an emergency, identification and password schemes for visiting staff, and information in accessible formats such as large print or braille.

Extra protection if you are on a prepayment meter

Around four million UK households pay for energy as they go through a prepayment meter, and many are on lower incomes. You have specific safeguards:

Emergency and friendly-hour credit: ask your supplier about emergency credit so your supply does not cut off if you cannot top up immediately, plus protections that prevent disconnection at night, at weekends and over holidays.
Repaying debt at an affordable rate: if your meter is set to recover debt, you can ask for the weekly deduction to be reduced to an amount you can manage so more of your top-up goes on actual energy.
No forced prepayment if you are vulnerable: suppliers must follow strict rules before moving anyone to a prepayment meter and should not do so where it is unsafe or unsuitable, such as for households with serious health needs.
Standing charges still apply: a prepayment meter still racks up daily standing charges even when you are not topping up, so register for the Warm Home Discount and any hardship grant you qualify for to offset them.
Fuel vouchers: if you cannot afford to top up at all, your local council or Citizens Advice may be able to issue a fuel voucher in an emergency.

Request low income home energy support

If you are in the United Kingdom and on a low income, benefits or a tight budget, we can help you explore:

Ways to reduce your day-to-day energy use without losing comfort
Whether you could move to a more suitable or cheaper tariff before the July price-cap rise
Grants, discounts and home improvement schemes in your area
How to deal with energy debt and speak to your supplier

Complete the short form and a member of our team, or a trusted partner, will be in touch to discuss your options.

Low cost home improvements that save energy

You do not always need major building work to make your home warmer and cheaper to run.

Draught-proofing

Unwanted draughts can make your home feel much colder and waste more heating energy. Simple, low cost ideas include:

Self-adhesive draught strips around doors and windows
Draught excluders or rolled-up towels at the bottom of doors
Closing unused chimneys with suitable draught excluders

These measures are especially helpful if you are renting and cannot make major changes.

Smart controls and thermostats

If you have central heating, using your controls effectively can make a big difference:

Use thermostatic radiator valves (TRVs) to reduce heating in rooms you use less.
Set timers so heating comes on just before you wake up or get home and turns off when not needed.
If you have a smart meter or in-home display, use it to track which appliances use the most energy.

Insulation and bigger upgrades

Where funding is available, upgrading your home can cut bills for years to come:

Loft insulation to reduce heat loss through the roof
Cavity wall insulation where suitable
More efficient boilers and heating systems
Modern electric storage heaters in all-electric homes

Because these upgrades can be expensive, it is important to explore grants and schemes that could reduce or remove the cost for low income households.

Take the next step towards lower home energy costs

Whether you are on a low income, receiving benefits or simply struggling with higher prices, you do not have to manage your home energy costs alone. With the price cap is £1,663 in July 2026, the right advice can help you save money, stay warm and feel more in control.

Share a few details and we will help you find the most suitable options for your household.

Start my free home energy review

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Updated on 27 Jul 2026