Energy bills for typical dual-fuel households in the UK are rising by 13% from July 1, 2026, but there are some options to avoid the hike. Those on a variable tariff will be subject to the change, but if you fix now you'll be shielded from further price rises over the next 12 to 24 months.
How much are energy bills going up in July?
The industry regulator, Ofgem, confirmed the Energy Price Cap will increase from the current £1,641 a year to £1,862 a year for a typical household paying by direct debit. This means the average household will pay approximately £221 more per year (or around £18 more per month) compared to the spring quarter. There is a strong possibility that energy bills will rise again in October 2026, though it is not yet officially confirmed. Analysts are currently forecasting that prices may increase by a further 2% to 4.5% in October.
Is it too late to switch to a fixed tariff?
No, it is not too late. You still have time to switch to a fixed tariff before the new price cap takes effect on July 1, 2026, but the window is closing fast. Because switching energy providers or locking in a new deal with your current supplier typically takes anywhere from a few days to two weeks, you need to act now if you want the fix to protect you the moment the July price hike hits.
Martin Lewis said: "The Middle East conflict will finally force its way onto most people's energy bills from July, with a 13% rise in the Price Cap. The hit will be biggest for higher users, especially those who use gas, as the change is in the cost of each unit of energy used rather than the daily standing charge. The gas unit rate is up 28%, with electricity up 6%."
"While there'll understandably be much argument in political circles about who or what's to blame, the key for consumers' pockets is that these changes only apply to those on firms' bog-standard tariffs. Those on fixes won't see a rise. And that means everyone on the Price Cap should consider getting off it, if they can, for example by locking in a fixed rate below the current Cap – up to 4% below. Do that and you start saving straight away, and then from July the fix will be 15% cheaper than the Cap."
"By October, things for those who stay on the Price Cap are likely to be even worse, with it predicted to rise again by a couple of percent. And even if the conflict in the Middle East ended tomorrow, while that may mean the Cap drops a bit rather than rises in October, it’s unlikely we'd see it return to where it is today. So, fixing seems the risk-averse bet for most."
"Sadly, cheap fixes aren't available for those on prepayment meters, but most people paying by Direct Debit can lock in cheaper deals. Don't stick with your own firm's fix though, many don't have cheap deals. Your exact cheapest tariff depends on usage and where you live, so ensure you do a whole-of-market comparison."
"The MSE Cheap Energy Club does that by default. If you're using other comparison sites, be careful, most hide tariffs that don't pay them, and the cheapest fixes at the moment often don't pay. So, ensure you find the small 'show all tariffs' button on the page."
Vital checks ahead of switching
Before you hit the switch button, make sure you check these three things:
- Look for Exit Fees – Many of the most competitive 12-month fixes currently come with exit fees (often around £50 to £100 per fuel). Only fix if you are confident you want to stay locked in for the full year.
- Check Your Current Supplier First – Before looking at other providers, log into your current supplier's app (like Octopus, British Gas, or E.ON Next). They often offer "existing customer exclusive" fixes that can be applied to your account instantly with a single click, completely avoiding the standard switching delay.
- The "Price Cap Tracker" Alternative – If you don't want to lock yourself into a fixed contract but still want to save, look into "Cap Tracker" tariffs. Providers like EDF and British Gas offer variable plans that are legally guaranteed to sit a set amount (usually around £50 a year) below whatever the official Ofgem price cap is.
