Energy bills are set to jump by £221 a year from July after Ofgem confirmed the price cap will rise from £1,641 to £1,862 — and with bosses warning prices are likely to remain elevated through winter, here is what you can do right now to soften the blow.
The increase, driven by surging wholesale gas prices following Iran’s blockade of the Strait of Hormuz, equates to £18 more per month for the average household on both gas and electricity. Gas bills will rise by 24 per cent, while electricity bills will see a 5 per cent increase. Tim Jarvis, chief executive of Ofgem, said it is likely that households will “see elevated prices this winter,” adding: “We’re not at the moment seeing the sort of price rises that we saw following the Russia-Ukraine war, but it remains a very uncertain situation.” Analysts at Cornwall Insight have already forecast a further rise to £1,899 when the cap is reviewed again for October to December.
Lock in a fixed deal
Around 33 million homes in the UK are on standard variable tariffs, making them directly exposed to every cap change. Switching to a fixed deal now could undercut July’s cap by around £250 a year for the average home, according to Uswitch. There are currently ten deals on the market cheaper than the July rate, including a 19-month fix from Fuse Energy that works out at £1,641 a year — the same as the current cap. Bear in mind that a fixed tariff locks in the price per unit, not how many units you use. Uswitch and MoneySupermarket are the recommended comparison tools, and always read the contract before signing as exit fees may apply.
Invest in thermal curtains
Thermal curtains trap warm air inside your home using layers of dense fabric, reduce draughts and act as insulators — while in summer they block heat from entering. Dunelm is selling a pair for as little as £14, while Argos has reduced a set to £11.40, down from £16.
Cut your washing costs
Ditch the tumble dryer while the warm weather lasts. According to Ben Gallizzi, energy expert at Uswitch, running a tumble dryer three times a week costs £2.22 at current cap rates and will likely cost more per cycle from July. Washing clothes at 30 degrees instead of higher temperatures will still get most items clean while cutting pounds off your bill. Switch to eco cycles and only run the machine on a full load.
Ask your supplier for help
If you are struggling with bills, you may be entitled to support directly from your energy company. Octopus Energy operates an Assist Fund offering direct financial support year-round, accessible at octopus.energy/financial-assistance. E.ON Next customers can apply for grants through its E.ON Next Energy Fund, though applicants must first complete a three-month Provisional Award Scheme — if all payments are made, any outstanding debt is cleared at the end.
Check the benefits you are entitled to
The Warm Home Discount provides eligible low-income households or those claiming benefits such as Universal Credit with £150 deducted directly from their energy bill. State pension age customers (66 and over) could receive a £300 Winter Fuel Payment, with funds expected to arrive in accounts from November. The Cold Weather Payment is also available from the DWP when temperatures drop to zero degrees Celsius or below for seven consecutive days.
