Energy price cap 2026: how to save money on your energy bills this winter
With winter approaching it’s understandable that you may be keeping a closer eye on your energy bills. From 1 October 2026, Ofgem’s energy price cap will increase by 4%,
From 1 October 2026, Ofgem’s energy price cap will increase by 4%, meaning a typical household paying by Direct Debit for gas and electricity could see their annual energy costs rise from £1,663 to around £1,723 – an increase of approximately £60 a year, or £5 a month, if usage stays the same. [1]
The increase is largely being driven by higher wholesale gas prices. However, the Government’s removal of VAT from domestic electricity bills from October will help offset some of the increase.
Now is a good time to think about how you can reduce your energy use and prepare for the colder months.
What does the energy price cap actually mean?
The price cap is not a cap on the total amount you will spend on energy. Instead, it limits the maximum unit rates and standing charges suppliers can apply to customers on standard variable or other default tariffs.
Your actual bill will depend on how much energy you use. So, while the price cap is increasing, reducing your energy consumption can still help bring down your overall bill.
How to save on energy costs over winter
1. Check your energy tariff
If you’re on a standard variable tariff, check whether your supplier or another supplier has cheaper rates available on a fixed tariff. Before switching, make sure you understand the terms, including any exit fees.
2. Be smarter with your heating
Heating is likely to be one of your biggest energy costs during winter.
If you’re comfortably warm, you could lower your thermostat slightly and make the most out of heating controls or timers to avoid heating your home when it’s empty.
When it gets dark, close your curtains and blinds to keep the warmth in and make sure your radiators aren’t blocked by any furniture.
3. Don’t heat rooms you’re not using
If there are any rooms in your house that aren’t regularly used, turn the radiators down or off to avoid heating them unnecessarily.
Closing internal doors can keep the warmth in and block any draughts you notice.
4. Make your appliances work harder for you
Making small changes can add up over time and save you money:
- Run your washing machine and dishwasher with full loads where possible.
- Use lower-temperature washing cycles when suitable.
- Avoid leaving appliances on standby unnecessarily.
- Only boil the amount of water you need in the kettle.
- Consider using a microwave or air fryer for smaller meals rather than the oven.
5. Keep an eye on your energy usage
If you have a smart meter, checking your usage regularly can help you spot where you’re using the most energy.
Rather than guessing, use your meter readings or energy app to understand how your consumption changes throughout the week. This can make it easier to identify areas where you could cut back.
What if you’re worried about paying your energy bill?
Even a small increase in monthly costs can make budgeting tougher, particularly when other costs are rising as well. If you’re struggling with your energy payments or any other bills, don’t wait until you can’t manage them.
You can reach out to your energy supplier; most will have support measures in place, which could include an affordable repayment plan or access to emergency credit for prepayment customers.
Accessing support
If you’re worried about money you don’t have to face it alone. Alongside free debt advice, our advisers can refer you through to our partner network to receive additional support.
We’re here to listen, without judgement, and help you explore the options available to you. If you’d like to find out what support could help in your situation, we’re ready to help.
If you are struggling with debts call us on 0800 072 1206. We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.
Alternatively, you can visit our www.payplan.com/bfawu to speak to us via live chat or WhatsApp
[1] Energy price cap will rise by 4% from October 2026 | Ofgem