Archive · 30 Sep 2026
UK Households Face Possible £276 Energy Bill Rise
Energy bills for many UK families may become more expensive in January.
One forecast says the usual yearly bill could rise by £276 to £1,999.
This is because the price of gas bought by energy companies has gone up.
Problems in global energy markets and low gas storage in Europe are adding pressure.
The official price has not been decided yet.
Ofgem will announce it on November 25.
Bills are already set to rise by 4% in October.
The Government is temporarily removing VAT on household electricity, which should save an average family about £45 a year.
Cornwall Insight forecasts a 16% January increase, raising the typical annual dual-fuel bill to £1,999.
The projected £276 rise would be the biggest quarterly increase since January 2023.
Higher wholesale gas prices, Middle East-related market disruption and low European storage are driving the forecast.
Ofgem’s confirmed October cap rises 4%, taking the typical annual bill from £1,663 to £1,723.
Ofgem will announce the final January-to-March cap on November 25, while the Government’s temporary electricity VAT cut is expected to save about £45 annually.
- Who
- Households across Great Britain, energy suppliers, Cornwall Insight and Ofgem are involved.
- What
- The typical annual dual-fuel energy bill could rise by £276, from £1,723 to £1,999, between October and January.
- When
- The possible increase would apply from January to March 2027; Ofgem will announce the final cap on November 25. The confirmed October cap takes effect on October 1.
- Where
- Great Britain, including England, Scotland and Wales.
- Why
- Higher wholesale gas prices, disruption linked to conflict in the Middle East and lower European gas storage levels are increasing costs.
Calls for More Household Support
Government Measures and Market Forecast
Help with rising bills
Calls for More Household Support
National Energy Action called for additional targeted support, action on energy debt and improvements to inefficient homes.
Government Measures and Market Forecast
The Government has introduced a temporary electricity VAT cut but has not announced whether further measures will appear in the October 28 Budget.
Certainty of the January increase
Calls for More Household Support
Cornwall Insight described a January increase as “all but certain” based on wholesale price rises so far.
Government Measures and Market Forecast
The January figure remains only a forecast and could change if wholesale energy prices fall; Ofgem will set the official cap.
- Forecast January bill
- £1,999 for a typical annual dual-fuel household bill
- Projected increase
- £276, or 16%, from the October level
- Confirmed October bill
- £1,723, up from £1,663
- October price cap
- Rises by 4% and takes effect on October 1
- Final January cap
- Ofgem will announce it on November 25
- Electricity VAT cut
- The Government is removing 5% VAT on domestic electricity bills from October 1 to March 31, 2027
- Estimated VAT saving
- Around £45 a year for the average household