Will my energy bill go up in July 2026? Yes — by £221 (13.5%)
The Ofgem price cap rises on 1 July 2026 to £1,862 a year for a typical dual-fuel home paying by direct debit — up £221 (about £18 a month). Here is who is affected, why it is happening and exactly what you can do about it.
- The short answer: yes, if you are on a standard variable tariff
- How much more you will pay per month and per year
- Who escapes the rise — and how to beat the new cap
Figures are Ofgem's typical dual-fuel direct-debit cap. Your actual bill depends on usage, region, meter type and payment method.
Fast answer: will my bill go up in July 2026?
Yes — if you are on a standard variable (price-capped) tariff. From 1 July 2026 the Ofgem price cap rises to £1,862 a year for a typical dual-fuel household paying by direct debit. That is £221 more than the £1,641 cap that ran from April to June — an increase of 13.5%, or roughly £18 a month. If you are on a fixed deal, your prices are protected and this rise does not touch you until your deal ends.
Important: the cap limits the price per unit of energy — it is not a cap on your total bill. The £1,862 figure is what a household with typical usage would pay; use more energy and you pay more.
The numbers at a glance
- New cap from 1 July: £1,862/yr (typical dual-fuel direct debit)
- Increase: +£221 (+13.5%) vs the £1,641 April–June cap
- Roughly +£18 a month on a typical bill
- Electricity up about 5%; gas up about 24%
Does it apply to you?
- On an SVT / default tariff? Yes — your rates rise on 1 July.
- On a fixed deal? No change until your fix ends.
- On prepayment? Your cap rises too (to £1,812 typical).
- Pay on receipt of bill? Higher again, at £2,005 typical.
How much more will I pay from July 2026?
For a household with typical usage on a capped tariff, the headline rise is £221 over a year — from £1,641 to £1,862. Spread across the year that is about £18 a month, though in practice you will feel it most in the colder months when you burn more gas. Remember the cap is built around a typical-use home: if you use more than average, your own increase in pounds will be larger; if you use less, it will be smaller.
The new direct-debit unit rates from 1 July 2026 are electricity 26.11p per kWh with a 57.19p daily standing charge, and gas 7.33p per kWh with a 29.04p daily standing charge. Those are the prices the cap allows suppliers to charge on a standard variable tariff; the exact figure varies a little by region.
Quick gut-check: to estimate your own rise, take your annual kWh for each fuel, multiply by the new unit rate, add the daily standing charge times 365, and compare with what you pay today. Your monthly direct debit is a budgeting figure, so always compare the underlying p/kWh and p/day instead.
Who is affected — and who escapes the rise
Your bill goes up if…
- You are on a standard variable or default tariff (the price-capped tariffs)
- You have never switched, or you rolled onto your supplier's default deal when a previous fix ended
- You are on a capped prepayment or pay-on-receipt tariff (different cap level, but it still rises)
Your bill is protected if…
- You are on a fixed-rate deal — your unit rates and standing charges stay the same until it ends
- Around 40% of households are on fixed deals and are unaffected by the July rise until their term runs out
- Your fix ends after 1 July — you keep your locked-in rates right up to the end date
Not sure which you are on? Your bill will say "Standard Variable", "Default tariff", or name a fixed tariff with an end date. Only the first two rise on 1 July. The "Am I on a fixed deal?" check on our results pages can confirm it for you.
Why is the cap rising in July 2026?
The cap is recalculated every three months and tracks the wholesale cost of energy. This quarter the main driver is wholesale gas, which has climbed by roughly 24%. Because gas also sets the price of a lot of grid electricity, it pushes both fuels up — but the gas move is far bigger, which is why gas unit rates rise about 24% while electricity rises only about 5%.
In short: this is a wholesale-cost rise feeding through the cap formula, not a change in how the cap works. Households that use a lot of gas for heating and hot water will feel the increase most, which is why taking action before 1 July is worth it if you are on a variable tariff.
Can I avoid the increase? Compare deals that beat the cap
You cannot stop the cap rising, but you do not have to sit on a capped variable tariff while it does. A competitively priced fixed deal can lock in rates below the new July cap and shield you from the next review too. Comparing whole-of-market deals lets you see:
- Whether a fix beats your capped SVT over the next 12–24 months
- How much you would save against the £1,862 cap at your usage
- What you would pay on your meter type and in your region
Beat-the-cap tip: take a meter reading on 30 June so the cheaper April–June cap covers everything you used 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.
What to do before 1 July 2026 (a 4-step plan)
- Check your tariff type. If your bill says Standard Variable or Default, you are in line for the rise. If you are fixed, note your end date.
- Take a meter reading on 30 June. This makes sure the cheaper April–June cap is applied to everything you used up to that date, so you are not over-charged at the new rates.
- Compare fixed deals now. A fix priced below the £1,862 cap protects you from the July rise and the next review. Weigh up any exit fees if you are leaving a fix early.
- Switch if a deal beats your capped rates. If a tariff comes in under the cap for your usage and region, locking it in gives you certainty through the winter.
Looking further ahead: the next cap review takes effect on 1 October 2026. Industry analysts at Cornwall Insight forecast the October cap at around £1,899 a year — higher again rather than lower — so prices are not expected to ease back this autumn, another reason to compare a fix now rather than wait.
FAQs: will my energy bill go up in July 2026?
Will my energy bill go up in July 2026?
Yes, if you are on a standard variable or default tariff. The Ofgem price cap rises on 1 July 2026 to £1,862 a year for a typical dual-fuel direct-debit home, which is £221 (13.5%) more than the April–June cap. Fixed-rate deals are not affected until they end.
How much more will I pay per month?
On a typical bill the £221 annual rise works out at roughly £18 a month. Your own figure depends on how much energy you use, your region and your meter type, so heavy gas users will see more than £18 and low users less.
Does the rise affect fixed-rate tariffs?
No. Only price-capped standard variable and default tariffs rise on 1 July. If you are on a fixed deal your unit rates and standing charges are locked in until the deal ends — around 40% of households are on fixed deals and are unaffected for now.
Why is gas rising more than electricity?
The increase is driven mainly by wholesale gas, which has risen about 24%. Electricity rises only about 5%. From 1 July the capped direct-debit rates are gas 7.33p per kWh and electricity 26.11p per kWh, so homes that use a lot of gas for heating feel the rise most.
Can I avoid the increase?
You cannot stop the cap rising, but you can move off a capped variable tariff. A fixed deal priced below the £1,862 cap protects you from the July rise. Take a meter reading on 30 June and compare whole-of-market deals before the new rates land.
Will prices come back down later in 2026?
Not based 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, so waiting is unlikely to save you money.
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 direct-debit basis:
- New cap: £1,862 a year, 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.
- By payment method: prepayment cap £1,812; payment on receipt of bill £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 whether a fix beats the July 2026 cap for you
Compare whole-of-market deals by postcode, meter and payment preference. It is the quickest way to check if you can beat the £1,862 cap before it lands on 1 July.
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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