Ofgem's energy price cap rises by PS3
Energy bills in the UK are going up by a tiny bit—up £3 a year for a dual-fuel direct debit household using a typical amount of energy between 1 January and 31 March 2026, making the average dual-fuel bill £1,758.
But there's good news: prices are set to drop from April under Budget measures.
Ofgem's cap affects about 19 million homes on default tariffs across England, Wales, and Scotland.
Gas is capped at 5.93p per kWh
Between 1 January and 31 March 2026, gas is capped at 5.93p per kWh and electricity at 27.69p per kWh.
Prepayment customers will pay slightly less than direct debit users (£1,711).
To help with rising costs, Chancellor Rachel Reeves is scrapping the Energy Company Obligation and moving most older renewable subsidies into general taxation for three years.
The Warm Homes Discount will cover 6 million homes
The Warm Homes Discount will cover six million homes from winter 2025, knocking £150 off bills for those on means-tested benefits.
These changes aim to make things a little easier for anyone feeling squeezed by rising energy prices.