The price cap is up 4%. Gas is up more.
From 1 October the typical household on a default tariff pays £1,723 a year under Ofgem's cap. Here's what that means if you've just moved in.
What changed: The annualised illustration for a typical dual-fuel household paying by direct debit rises from £1,663 to £1,723. Ofgem rounds the increase to 4%.
Where it applies: England, Scotland and Wales.
Who it affects: Households on default tariffs covered by the cap. Fixed-tariff rates are governed by their contract.
What to check: Your tariff, payment method, unit rates, standing charges and actual consumption. The cap limits rates and standing charges, not your total bill.
Effective: 1 October–31 December 2026. The annual figure illustrates these rates sustained for a year; it is not a forecast or a three-month bill.
Last verified: 9 October 2026.
Unpacking the headline
Ofgem reports an 8% rise in typical gas bills while electricity bills remain broadly stable, reflecting the removal of electricity VAT. The change in an individual household’s bill depends on its fuel mix, tariff and consumption.
For a heat-pump home, compare the electricity tariff with actual usage rather than treating the dual-fuel headline as a forecast.
Official source
Ofgem: Energy price cap will rise by 4% from October 2026 · 26 August 2026.
What changed: The typical annual dual-fuel bill under the cap rises to £1,723, from £1,663.
Where it applies: England, Scotland and Wales.
Who it affects: Around 22 million households on default tariffs.
What to check: The tariff name on your last bill. The cap limits unit rates and standing charges, not your total bill.
Effective: 1 October 2026, until 31 December 2026
Official source: Ofgem1
Last verified: 3 October 2026
Journalism, not legal advice.
Unpacking the headline
Ofgem says gas bills rise 8% while electricity stays broadly stable. The 4% figure is for a typical bill that combines both.1
A gas-heated home will feel this more than an all-electric new build with a heat pump. If your new home has a heat pump, the electricity side of the cap is the one that matters to you.
Sources
- Energy price cap will rise by 4% from October 2026 Ofgem · 26 August 2026