How much will energy bills rise in July 2026? +£221 explained
The Ofgem price cap rises on 1 July 2026 to £1,862 a year for a typical dual-fuel direct-debit home — up £221, or 13.5%. Here are the exact unit rates, the gas-versus-electricity split, the figures by payment method and usage level, and the October outlook.
- The headline rise in pounds and percent
- New unit rates, standing charges and the elec-vs-gas split
- Figures by payment method and by low / medium / high usage
Figures are Ofgem's typical dual-fuel direct-debit cap. Your actual bill depends on usage, region, meter type and payment method.
Fast answer: how much are energy bills rising in July 2026?
From 1 July 2026 the Ofgem price cap rises to £1,862 a year for a typical dual-fuel household paying by direct debit — up £221 from the £1,641 cap that ran from April to June, an increase of 13.5% (about £18 a month). The rise is uneven across the two fuels: gas unit rates climb about 24% while electricity rises only about 5%. The cap is the maximum price per unit on standard variable tariffs — it is not a cap on your total bill.
The headline numbers
- New cap: £1,862/yr (typical dual-fuel direct debit)
- Up +£221 on the £1,641 April–June cap
- A rise of 13.5%, roughly £18 a month
- Effective 1 July to 30 September 2026
Where the rise comes from
- Gas: up about 24% (the main driver)
- Electricity: up about 5%
- Driven by higher wholesale gas costs
- Only price-capped SVT/default tariffs are affected
The gas-versus-electricity split
The £221 rise is not shared evenly between your two fuels. The increase is driven by wholesale gas, up roughly 24%, while electricity rises only about 5%. Because gas often sets the marginal price of grid electricity, it nudges power prices up too — but the gas move dominates. That matters for how the rise lands on your bill: a home that heats with gas will feel a much bigger increase than an electricity-only flat of the same overall size.
In practice, the more of your energy that comes from gas — heating, hot water, cooking — the closer your personal increase will be to the top of the range. Low-gas or electricity-only homes sit nearer the smaller 5% end.
New unit rates and standing charges from 1 July 2026
These are the capped direct-debit rates that apply from 1 July. The exact figure varies a little by region, but these are the typical levels Ofgem has set:
| Charge | Electricity | Gas |
|---|---|---|
| Unit rate (per kWh) | 26.11p | 7.33p |
| Standing charge (per day) | 57.19p | 29.04p |
| Approx. change vs Apr–Jun | about +5% | about +24% |
Typical direct-debit rates for 1 July to 30 September 2026. Standing charges and unit rates vary by region.
How to use these: estimate your annual cost as (unit rate × your annual kWh) + (standing charge × 365) for each fuel. Compare that with what you pay today to see your own increase — and always compare the underlying p/kWh and p/day, not your monthly direct debit.
The cap by payment method
How you pay changes the typical annual cap. Direct debit is the cheapest; prepayment is slightly higher; paying on receipt of your bill is the most expensive:
| Payment method | Typical cap from 1 July 2026 |
|---|---|
| Direct debit | £1,862/yr |
| Prepayment | £1,812/yr |
| Payment on receipt of bill | £2,005/yr |
Typical dual-fuel figures. The cap also varies by region and meter type.
What the rise means by usage level
The £1,862 cap describes a typical, medium-use home. Because the cap limits the price per unit rather than your total bill, the more energy you use the more you pay — and the bigger your increase in pounds. Here is the broad picture:
Low usage
Smaller flats and single-occupant homes pay below the £1,862 typical figure. Standing charges (57.19p/day electricity, 29.04p/day gas) make up a larger share of the bill, so the percentage rise can feel milder than for heavy users.
Medium usage
This is the household the £1,862 cap is built around. Expect roughly the headline £221 annual rise — about £18 a month — with most of it coming from the 24% jump in gas rates.
High usage
Larger, gas-heated homes pay well above £1,862 and will see an increase larger than £221, because the bigger gas rise applies to more units. These homes have the most to gain from comparing a fixed deal.
Want your exact number? The typical figures here are a guide. Put your postcode and usage into the comparison below to see what you would pay against the July cap — and whether a fix comes in cheaper.
How to beat the July 2026 cap
The cap is a ceiling on standard variable rates, not the cheapest deal available. A competitively priced fixed tariff can come in below the £1,862 cap and hold your rates steady through the next review too. Comparing whole-of-market deals shows you:
- How much a fix would cost against the £1,862 cap at your usage
- The split of unit rates and standing charges for your meter
- What you would pay in your region and on your payment method
Beat-the-cap tip: take a meter reading on 30 June so the cheaper April–June cap covers your usage up to that date, then compare fixes that start from July.
Compare deals that beat the new cap
Enter your postcode to see whole-of-market tariffs ranked by what they would cost you against the July 2026 cap.
Will bills come back down in October 2026?
The next cap review takes effect on 1 October 2026. On current projections it is not expected to bring relief: industry analysts at Cornwall Insight forecast the October cap at around £1,899 a year — slightly higher again than the July level, rather than lower. Forecasts can move with the wholesale market, but the direction of travel suggests prices will not ease back this autumn.
For households on a capped variable tariff, that strengthens the case for comparing a fixed deal now rather than waiting for an October reduction that forecasters are not predicting.
FAQs: how much will energy bills rise in July 2026?
How much will energy bills rise in July 2026?
The Ofgem price cap rises to £1,862 a year for a typical dual-fuel direct-debit home from 1 July 2026 — up £221, or 13.5%, on the £1,641 April–June cap. That is roughly £18 more a month on a typical bill.
What are the new unit rates from July 2026?
On a capped direct-debit tariff, electricity is 26.11p per kWh with a 57.19p daily standing charge, and gas is 7.33p per kWh with a 29.04p daily standing charge. Rates vary slightly by region.
Why is gas rising more than electricity?
The rise is driven mainly by higher wholesale gas costs, so gas unit rates climb about 24% while electricity rises only about 5%. Homes that use a lot of gas for heating therefore see the largest increase.
How much will I pay per month?
For a typical home the £221 annual rise is about £18 a month. Your own figure depends on usage, region and meter type — high-usage, gas-heated homes will pay more than £18 extra, low-usage homes less.
Does the rise affect fixed-rate tariffs?
No. Only price-capped standard variable and default tariffs rise on 1 July 2026. If you are on a fixed deal your rates are locked in until it ends, so the increase does not apply to you yet.
Will prices come back down later in 2026?
Not on current forecasts. The next cap review takes effect on 1 October 2026, and industry analysts at Cornwall Insight forecast the October cap at around £1,899 a year — slightly higher again rather than lower.
How we report these figures (methodology), trust & sources
Page details
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist (Consumer Energy)
- Last reviewed
- June 2026
Our methodology (transparent figures)
All figures on this page are Ofgem's published price-cap levels for 1 July to 30 September 2026, on a typical dual-fuel basis:
- New cap: £1,862 a year (direct debit), up £221 (13.5%) on the £1,641 April–June cap.
- Unit rates (direct debit): electricity 26.11p/kWh + 57.19p/day; gas 7.33p/kWh + 29.04p/day.
- Split: gas up about 24%, electricity up about 5%.
- By payment method: prepayment £1,812; payment on receipt £2,005.
- October outlook: Cornwall Insight forecast of about £1,899 for the cap from 1 October 2026.
Limitations: the cap varies by region, meter type and payment method, so your exact bill will differ from the typical figure. Use your own bill rates and a current comparison for a personalised view. Market tariffs change frequently and supplier availability varies.
See what you would pay after the July 2026 cap
Compare whole-of-market deals by postcode, meter and payment preference. It is the quickest way to check whether a fix beats the £1,862 cap at your usage.
EnergyPlus is a home energy comparison service for UK consumers. Availability, prices and savings are not guaranteed and depend on your details.
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