Energy bills are heading into winter with another price change. From 1 October to 31 December 2026, Ofgem’s price cap will rise by 4% for a typical household using gas and electricity and paying by Direct Debit.
The headline figure will be £1,723 a year, up from £1,663. That illustrates what a household using Ofgem’s typical amount of energy would pay if the October rates lasted for a full year. It is not a £1,723 limit on your bill, and it does not mean you will pay a quarter of that amount between October and December.
Your actual bill depends on your usage, where you live, your meter, how you pay and the tariff you are on.
The October 2026 rates at a glance
These are Ofgem’s average rates across England, Scotland and Wales for a household on a standard variable tariff paying by Direct Debit:
| Fuel | Unit rate | Daily standing charge |
|---|---|---|
| Electricity | 26.32p per kWh | 54.83p |
| Gas | 7.97p per kWh | 29.68p |
The electricity figures reflect the temporary removal of VAT from domestic electricity bills from 1 October 2026 to 31 March 2027. The gas figures include 5% VAT. Your rates may differ by region and payment method, so compare these national averages with the rates on your supplier’s tariff information.
What do the charges mean? The unit rate is the price for each kilowatt hour (kWh) of energy you use. The standing charge is a daily charge you pay even on a day when you use no gas or electricity.
Why is the cap rising if electricity VAT is being cut?
Higher wholesale gas prices are pushing up the cost of energy. The temporary VAT cut reduces the electricity part of household bills, but it does not cancel out the wider rise for a typical home using both fuels.
Ofgem says most of the increase in its typical dual-fuel figure comes from gas. It estimates that gas bills will rise by around 8% under the new cap, while households that do not use gas will see a much smaller increase of less than 1%. Those comparisons use Ofgem’s typical-consumption assumptions. Your change depends on how much of each fuel you use.
The government expects suppliers to pass the electricity VAT reduction on to customers including people on fixed tariffs. If you are on a fix, the October price-cap increase does not change your agreed fixed rates, but the VAT reduction should be reflected in your electricity charges.
Who is affected by the energy price cap?
The cap applies to default or standard variable tariffs. These tariffs can change when Ofgem updates the cap every three months. It covers eligible customers who pay by Direct Debit, pay on receipt of a bill or use a prepayment meter, although their capped rates are not all identical.
If you have chosen a fixed tariff, the change in capped rates does not automatically change your fixed unit rates. The price cap also does not cover business energy contracts, heating oil or heat networks in the same way.
Check the name of your tariff on a recent bill or in your supplier’s app if you are unsure which you have.
The important distinction: Ofgem limits the rates a supplier can charge customers on default tariffs. It does not limit how much energy a household can use or set a maximum total bill.
Will my Direct Debit rise by 4% in October?
Not necessarily. A Direct Debit is usually designed to spread expected costs over the year. Your supplier may also account for expected usage, whether you are in credit or debt, and the months ahead.
Before agreeing to an increase, check:
- Your meter readings: is the bill based on actual readings or estimates?
- Your annual usage estimate: does it resemble what your household normally uses?
- Your account balance: have you already built up credit towards winter?
- Your rates: have the correct unit rates and standing charges been applied for your tariff and region?
- Any debt repayments: is part of the proposed payment clearing an existing balance?
Ask your supplier to explain its calculation if the new payment seems wrong. You can request a Direct Debit review, although reducing the payment too far could leave you with debt after winter.
Is it worth fixing your energy tariff?
A fixed deal can give you certainty over your rates, but it will not fix your total bill: using more energy still costs more. Nor is a fix automatically cheaper than the cap.
Compare the electricity and gas unit rates, both standing charges, the term and any exit fees against your present tariff. Use your own annual kWh figures rather than relying only on an advertised “typical household” saving. Check how the temporary electricity VAT reduction is shown in any quote, so you compare prices on the same basis.
Read our guide to whether you should fix your energy price and our step-by-step guide to switching supplier before committing.
What if you cannot afford the new bill?
Contact your supplier as soon as you think you may struggle. Ask for an affordable repayment plan, a review of your Direct Debit and any hardship support available. If you use a prepayment meter and risk running out of credit, tell the supplier directly and ask what immediate help it can offer.
You can also check our guide to help with energy bills and grants in 2026. The Warm Home Discount is a separate, one-off £150 electricity bill discount for eligible households; the 2026/27 scheme is due to reopen in October. Eligibility and the steps you need to take depend on your circumstances and where you live.
Your October energy bill checklist
- Take a meter reading around 30 September and 1 October, or check that your smart meter is sending readings correctly.
- Look for the date your supplier applies the new rates.
- Check the amount of energy charged at each rate.
- Compare the unit rates and standing charges with your tariff information.
- Keep a copy of the bill if you need to question a charge.
Check the current rates by region and payment method on Ofgem’s website.
The MoneyMagpie verdict: the £1,723 headline shows the direction of travel, but your own unit rates, standing charges and usage tell you what the change really means. Check those before switching tariff or accepting a higher monthly payment.
Sources: Ofgem’s October 2026 announcement; Ofgem’s October unit rates and VAT explanation; GOV.UK Warm Home Discount guidance. Figures checked 24 September 2026.
Disclaimer: This article provides general information, not personalised financial advice. Rates, support eligibility and tariffs vary. The October price cap applies from 1 October to 31 December 2026.
