Millions face higher energy bills as price cap rises by £60 a year
UKPulse Consumer Desk
Around 22 million households on standard variable tariffs will see their annual energy bills increase by approximately £60 from today, taking typical bills to £1,723.
- Ofgem's latest energy price cap increase comes into force today, 1 October 2026.
- Typical households on standard variable tariffs will pay about £60 more a year, with annual bills reaching £1,723.
- The government has removed VAT on domestic electricity bills and offers a £150 Warm Home Discount for eligible households.
Millions of households in England, Scotland, and Wales are facing higher energy bills from today, 1 October 2026, as Ofgem's latest energy price cap increase takes effect. Around 22 million households on standard variable tariffs will see their annual bills rise by approximately £60, bringing the typical annual cost to £1,723.
The regulator stated that the increase is largely due to higher wholesale gas prices, which are linked to conflict in the Middle East. While prices remain around 52% lower than during the peak of the energy crisis in 2022, charities and consumer groups highlight that many households are still struggling with costs that are well above pre-crisis levels.
The government has said that its removal of VAT on domestic electricity bills has helped to limit the increase, estimating that bills would otherwise have been about £45 higher. Additionally, eligible households can receive a £150 Warm Home Discount this winter to help with costs.
Why this matters: The increase in the energy price cap means higher costs for millions of households, particularly as colder weather approaches and energy usage typically rises.
What this means for you: If you are on a standard variable tariff, your annual energy bill is expected to rise by about £60, taking typical costs to £1,723. You may be eligible for a £150 Warm Home Discount this winter.