How do you manage rising energy bills this winter? Start with the help you may already be due, then decide whether to fix before Ofgem sets the January cap. From 1 October to 31 December 2026 the energy price cap is £1,723 a year for a typical dual-fuel home paying by Direct Debit, with 0% VAT on household electricity in Great Britain until 30 June 2027, while the Warm Home Discount is a one-off £150 and eligible homes in England in Council Tax bands A to D are due a one-off £100 payment from January 2027.
Last updated: Wednesday 11 November 2026 (Europe/London). Next update: when Ofgem announces the January to March 2027 price cap, due by 25 November 2026. The cap and unit rates are from Ofgem, for 1 October to 31 December 2026. The VAT dates are from GOV.UK Fuel and power (VAT Notice 701/19). Scheme rules are from GOV.UK. The £1,999.28 forecast is from Cornwall Insight, 30 September 2026. The £2,199 figure is uSwitch’s average of supplier predictions as of 10 November 2026. Your own bill depends on your region, meter, payment method and how much you use.
SwitchSquid may earn a commission if you use the deal buttons on this page, which open MoneySuperMarket’s home energy comparison. It does not change the price you pay. Confirm the tariff, term and exit fee for your postcode before you switch. SwitchSquid is a comparison site, not an energy supplier, and nothing here is personal financial advice.
Compare tariffs for your home before January
- Enter your postcode and usage to see fixed, tracker and variable tariffs for your home
- Set those quotes against the £1,723 typical cap for 1 October to 31 December 2026
- Main limitation: no comparison site lists every tariff, so confirm the price, term and exit fee with the supplier before you switch
What is happening to bills this winter
The price cap is not a maximum bill. It limits the unit rates and standing charges on standard variable, or default, tariffs. The £1,723 headline is what a typical household using 2,500 kWh of electricity and 9,500 kWh of gas a year, and paying by Direct Debit, would pay if those rates stayed in place for a year. Use more, or pay another way, and your bill will be different. Fixed and some tracker deals sit outside that cap, so they can come in higher or lower than the typical figure.
Ofgem announced the current cap on 26 August 2026. It is 4% higher than the July to September typical figure of £1,663. National average Direct Debit rates for this quarter are 26.32p per kWh and 54.83p a day for electricity, and 7.97p per kWh and 29.68p a day for gas. Those electricity rates already reflect 0% VAT. Gas still includes 5% VAT. Ofgem notes that this quarter’s figures cannot be compared directly with earlier periods because of that VAT change. If you pay by prepayment meter, the typical cap is £1,678; if you pay by standard credit, it is £1,861.
Two further changes sit alongside the cap. First, the temporary 0% VAT rate on qualifying domestic electricity in Great Britain runs from 1 October 2026 to 30 June 2027, after an extension at the Autumn Budget. It does not apply to gas, and electricity in Northern Ireland stays at 5%. Our electricity VAT cut guide explains what that does, and does not, change on a bill. Second, Ofgem will set the January to March 2027 cap by 25 November 2026. The new rates apply from 1 January. See our price cap announcement dates and the 2027 price cap calendar for the full run of dates.
Item | Figure | What it is |
|---|---|---|
Current cap, 1 October to 31 December 2026 | £1,723 a year typical | Ofgem, dual fuel, Direct Debit, typical use |
Electricity, Direct Debit average | 26.32p/kWh and 54.83p a day | Includes 0% VAT in Great Britain |
Gas, Direct Debit average | 7.97p/kWh and 29.68p a day | Includes 5% VAT |
Cornwall Insight, 30 September 2026 | £1,999.28 a year typical | Forecast for January to March 2027, about £276 or 16% above the current cap |
uSwitch supplier average, 10 November 2026 | £2,199 a year typical | Average of British Gas, EDF and E.ON Next predictions, about 28% above the current cap |
Ofgem’s January announcement | Due by 25 November 2026 | This is the figure that will actually apply from 1 January 2027 |
Neither forecast is a decision. Wholesale prices can still move until Ofgem closes the window it uses to set the cap, and the official number can land above or below those averages. Our January 2027 price cap forecast guide walks through what a higher January cap would mean for a typical home, and why a fix only helps if the quote for your postcode is actually cheaper once exit fees are included.
Help you may already be due
Before you change any habits, check the schemes that pay money or credit your bill. They are separate from each other, and qualifying for one does not automatically mean you will get the others. Most of the winter payments are made without an application if the government or your supplier already holds the right records, but some people still need to claim, and the rules differ in Scotland, Wales and Northern Ireland.
Scheme | Amount | Who it is for, in short | When |
|---|---|---|---|
Warm Home Discount | £150, once, off your electricity bill | In England and Wales, usually if you (or your partner) received Pension Credit, income-related Employment and Support Allowance, Housing Benefit or Universal Credit on 23 August 2026, you are with a participating supplier, and the benefit recipient is named on the electricity bill. Scotland has its own process, and some people need to apply. It is not available in Northern Ireland. | Winter 2026 to 2027 |
Winter Fuel Payment | Between £100 and £300 | If you were born on or before 27 June 1960 and usually live in England, Wales or Northern Ireland. Most people are paid automatically in November or December 2026. If your income is over £35,000, HMRC takes the payment back; your partner’s income does not count towards that total. Scotland has Pension Age Winter Heating Payment instead. | Winter 2026 to 2027; claim by 31 March 2027 if you need to apply |
Cold Weather Payment | £25 for each seven-day period | If you receive certain benefits or Support for Mortgage Interest, and the average temperature in your area is recorded or forecast to be 0°C or below over seven consecutive days. Payments are automatic. You cannot get this in Scotland, which has an annual Winter Heating Payment instead. | 1 November 2026 to 31 March 2027 |
Household Energy Payment | £100, once | Households in England that are liable for council tax on, and live in, their main home in bands A to D. Second homes and empty properties are not eligible. If you pay council tax by Direct Debit, it should go into your bank account; otherwise your council will invite you to apply. Scotland, Wales and Northern Ireland receive extra funding to design their own support. The government has said full eligibility rules will follow. | From January 2027 |
The Warm Home Discount is a credit on your electricity account, or a voucher or meter credit if you prepay. It is not paid into your bank. GOV.UK says it does not affect Cold Weather Payments or Winter Fuel Payments. It can, however, be a reason to pause before you switch, because this year’s discount depends on your supplier and on whose name is on the bill. Our Warm Home Discount guide sets that trade-off out in more detail: the £150 is real help, but it is not a reason to stay on a tariff that costs you more than a better deal.
For Winter Fuel Payment, most eligible people do not need to apply. You do need to claim if you are eligible and you do not already get a qualifying pension or benefit, or if you have deferred your State Pension since your last payment. Claims for winter 2026 to 2027 must arrive by 31 March 2027. Watch for letters and calls pretending to be from the government; GOV.UK will not ask you to hand over bank details or passwords to “release” a payment.
The £100 Household Energy Payment is England-only as a named scheme. Our £100 Household Energy Payment guide covers who qualifies, how it is paid and how to spot a scam. Nobody other than your council should contact you asking you to claim it. The government has also set aside an extra £100 million for councils to help some households that need support but do not meet the band A to D rules; each council will set its own criteria.
Who each scheme suits, and the conditions
If you… | Look at | Watch for |
|---|---|---|
Receive Pension Credit, Universal Credit, Housing Benefit or income-related ESA, and you are named on the electricity bill | Warm Home Discount, and possibly Cold Weather Payments | The qualifying date for the discount in England and Wales was 23 August 2026. A later change of supplier or of the name on the bill can get in the way of this year’s credit. |
Were born on or before 27 June 1960 | Winter Fuel Payment (or Pension Age Winter Heating Payment in Scotland) | The £35,000 income clawback, and the 31 March 2027 claim deadline if you are not paid automatically. |
Live in your main home in England in Council Tax band A, B, C or D and you pay the council tax | The £100 Household Energy Payment from January 2027 | Second homes and empty properties are out. If you do not pay by Direct Debit, wait for your council’s invitation rather than a cold caller. |
Live in Scotland, Wales or Northern Ireland | The devolved equivalent for winter heating or bill support, plus UK-wide schemes that still apply where you live | Warm Home Discount, Winter Fuel Payment and Cold Weather Payment each have different rules outside England. Do not assume an England-only payment will arrive. |
Are on a variable tariff and will still be on one on 1 January | A meter reading at the change of cap, and a fresh comparison before 25 November | Estimated readings can bill some December use at January rates if the cap rises. |
Already have a cheap, fairly priced fix with a high exit fee | Staying put, unless a new quote still wins after the fee | Leaving early can wipe out a modest annual saving. |
If you are struggling to pay, contact your supplier early and ask about a repayment plan, and check whether you should be on the Priority Services Register. The Autumn Budget also described a planned Debt Relief Scheme for some vulnerable households with arrears that built up from the 2022–24 energy crisis, but Ofgem still has to consult on the final design. That is not something you can apply for today, so do not wait for it before speaking to your supplier.
Should you fix before January 2027?
A fix buys a known unit rate and standing charge for a set term. It does not automatically beat the cap. If January’s cap rises towards the latest supplier-average forecast, a reasonably priced fix taken now can protect you from that increase. If the official cap comes in lower, or if the fix you are offered already sits well above £1,723 for your usage, you can end up paying more for the certainty.
Do the comparison with your own kWh, not only with the typical-home figure. Add any exit fee on your current tariff, and any exit fee on the new one, before you decide. Our cheapest fixed energy deals guide is the place to start for how recent fixed prices have sat against the cap, and MoneySavingExpert’s page on whether to fix is updated by its own team if you want a second view. Then run a fresh quote, because those pages are not a live tariff list for your postcode.
If you rent, you can usually still switch if the bills are in your name; our guide to switching when you rent sets out the limits. If you already owe your supplier money, different rules apply, and a debt of more than £500 on a prepayment meter can block a switch, as our prepayment switching guide explains. In a straightforward switch, you do not need to contact your current supplier to leave. The new supplier starts it, it is usually finished within five working days, and you normally have 14 days to change your mind. Keep paying the old supplier until the switch completes, and take a meter reading on the switch date. Our page on how long a switch takes has the detail.
Price a fix against staying on the cap, using your usage
- Compare a fix, a tracker and a variable tariff with your own postcode and kWh
- Set the quote against the current £1,723 typical cap, not only against a January forecast
- Main limitation: a forecast is not Ofgem’s figure, and a cheap-looking yearly total can still carry a high exit fee
A simple January plan
You do not need to do everything in one evening. This order covers the decisions that actually move a winter bill, without waiting until the new cap has already started.
When | What to do |
|---|---|
This week | Check whether the Warm Home Discount, Winter Fuel Payment or Cold Weather Payment applies to you, and whether you still need to claim. If you live in England in bands A to D, read the £100 Household Energy Payment guide so you know how the £100 is meant to arrive. |
Before 25 November 2026 | Run a comparison for your postcode. Decide whether a fix, a tracker or staying on a variable tariff is the better fit once exit fees are included. Ofgem’s January figure is due by this date. |
Once Ofgem announces the cap | Compare again if you have not already switched. A forecast of £2,199 is only a guide; the official rates are the ones that will appear on a variable bill from 1 January. |
31 December 2026 or 1 January 2027 | If you are on a variable tariff and do not have a smart meter your supplier can read, take a gas and electricity reading and send it in, so December use is billed at this quarter’s rates. Our meter-reading guide explains who needs to do this and when suppliers accept readings. |
From January 2027 | If you are eligible for the Household Energy Payment and you pay council tax by Direct Debit, you should not need to apply. If you do not, wait for your council to invite you. Check the new cap on your first bills and, if a Direct Debit looks too high, ask your supplier to recalculate it from a recent reading. |
For the usage and heating habits that trim a bill without a switch, use the guide to 12 ways to cut winter bills. That guide, last updated on 29 October 2026, is built around Energy Saving Trust tips and the current cap rates. This page does not repeat those 12 tips. The two are meant to be read together: schemes and the January decision here, day-to-day cuts there.
FAQ
How much is the energy price cap this winter?
From 1 October to 31 December 2026, Ofgem’s cap is £1,723 a year for a typical dual-fuel home paying by Direct Debit, based on 2,500 kWh of electricity and 9,500 kWh of gas. National average Direct Debit rates are 26.32p per kWh and 54.83p a day for electricity, and 7.97p per kWh and 29.68p a day for gas. The cap limits those rates on default tariffs; it is not a maximum bill, and fixed deals can come in higher or lower.
Will energy bills go up in January 2027?
They will change, because Ofgem sets a new cap from 1 January 2027 and will announce it by 25 November 2026. How far they rise is still a forecast: Cornwall Insight put a typical Direct Debit dual-fuel bill at £1,999.28 on 30 September 2026, 16% above the current cap, and uSwitch’s average of British Gas, EDF and E.ON Next predictions was £2,199 as of 10 November 2026, about 28% higher. Those are not official figures. If you are on a variable tariff, the announced cap is what will apply; if you are on a fix, your rates stay as contracted until the term ends or you leave and pay any exit fee.
What help can I get with energy bills this winter?
Depending on where you live and your circumstances, you may be able to get a £150 Warm Home Discount, a Winter Fuel Payment of between £100 and £300, Cold Weather Payments of £25 for each qualifying seven-day freeze, and, in England, a £100 Household Energy Payment from January 2027 if your main home is in Council Tax bands A to D and you are liable for the tax. Electricity in Great Britain also carries 0% VAT until 30 June 2027. Check the GOV.UK pages for each scheme, and our Warm Home Discount guide and £100 Household Energy Payment guide, before you assume a payment will arrive automatically.
Who gets the £100 Household Energy Payment?
GOV.UK says households in England are eligible if they are liable for council tax on, and live in, a property in bands A to D as their main home. Second homes, empty properties, and households where the householder is not responsible for council tax are not eligible. If you pay by Direct Debit, the £100 should be paid into your bank account from January 2027; if you do not, your council will invite you to apply. Scotland, Wales and Northern Ireland receive extra funding to provide their own support, and the government has said full eligibility rules will be published in due course.
Does the Warm Home Discount stop me switching?
No, but it can affect this year’s £150 credit, because eligibility depends on your supplier, the qualifying date of 23 August 2026 in England and Wales, and the name on the electricity bill. The discount does not affect Winter Fuel Payment or Cold Weather Payment. If you might qualify, read our Warm Home Discount guide and, if needed, ask your current and new supplier what happens to this year’s rebate before you complete a switch.
Should I fix my energy deal before January?
Only if a quote for your postcode, after any exit fees, is better than staying on a variable tariff through the next cap. A fix protects you if January rates rise, but it can cost more than the current £1,723 typical figure, and it will not fall if the official cap comes in below the forecasts. Compare now, look again once Ofgem announces the number by 25 November 2026, and use our cheapest fixed energy deals guide as background rather than as a live price list.
Do I need to take a meter reading at the end of December?
Yes, if you are on a variable tariff and your supplier will not already have a reliable reading for the change of cap, which is usually the case if you do not have a working smart meter it can read. Take gas and electricity readings on 31 December 2026 or 1 January 2027 and send them in, so December use is billed at this quarter’s capped rates. Our meter-reading guide explains the timing, including that some suppliers accept readings a few days either side of the change.
What to do now
Treat this winter in two parts. First, claim or confirm the help you are already entitled to: the £150 Warm Home Discount, Winter Fuel Payment, Cold Weather Payments if a freeze hits your area, and the £100 England payment from January if you qualify. Second, run a comparison before Ofgem announces the January cap on or before 25 November 2026, and only fix if the quote for your home wins on its own terms. If you stay on a variable tariff, send a meter reading at the year’s end. For the smaller, everyday cuts, go to the guide to 12 ways to cut winter bills. The larger moves are the schemes, the VAT that is already in your electricity rate, and the tariff you are on when 1 January arrives.
Check the tariffs available for your postcode
- If you are staying on a variable tariff, plan a meter reading for 31 December or 1 January
- If a fix wins for your usage, you can usually switch without calling your current supplier, often within five working days
- Main limitation: help schemes have their own rules, and a switch can affect this year’s Warm Home Discount, so confirm that for your situation
Sources
Ofgem, energy price cap will rise by 4% from October 2026 (26 August 2026): Ofgem’s 26 August 2026 announcement. Ofgem, energy price cap unit rates and standing charges, 1 October to 31 December 2026: Ofgem’s unit rates and standing charges. Cornwall Insight, 16% price cap rise forecast in January (30 September 2026): Cornwall Insight’s 30 September 2026 forecast. uSwitch, 2026 gas and electricity price forecast, supplier predictions as of 10 November 2026: uSwitch’s gas and electricity price forecast. GOV.UK, what the Autumn Budget 2026 means for your energy bills (28 October 2026): GOV.UK: what the Autumn Budget 2026 means for your energy bills. GOV.UK, Fuel and power (VAT Notice 701/19): GOV.UK Fuel and power (VAT Notice 701/19). GOV.UK, Warm Home Discount, and the England and Wales eligibility statement for 2026 to 2027: GOV.UK: Warm Home Discount; GOV.UK Warm Home Discount eligibility statement for 2026 to 2027. GOV.UK, Winter Fuel Payment: GOV.UK: Winter Fuel Payment; Winter Fuel Payment eligibility. GOV.UK, Cold Weather Payment: GOV.UK: Cold Weather Payment.
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