The price cap will rise by £63 in October, the third increase this year. But a separate warning from energy analysts suggests households on standard variable tariffs are already paying £221 more than those who switch to the cheapest fixed deals available today. The deadline to act is July 1, when several fixed tariffs are due to expire or be withdrawn.
As reported by the Daily Express, the £221 figure comes from comparison site Uswitch, which found that the typical annual bill on a standard variable tariff is £1,928, compared with £1,707 on the best fixed deal. That gap is wider than it has been in months.
Who qualifies, and who doesn’t
The warning applies to every household on a standard variable tariff, roughly 11 million homes across England, Scotland and Wales. These are the default tariffs that customers are moved to when their fixed deal ends, and they track the Ofgem price cap. The cap will rise to £1,928 from October, but the cheapest fixes are currently below that level.
Households with prepayment meters or those in debt to their supplier may find switching harder. Some suppliers require a credit check or a positive balance before allowing a switch. But for most, the process takes 17 days and can be done online within 20 minutes.
The catch is that fixed deals are shrinking in number. Ofgem data shows only 12 fixed tariffs are available today, down from 34 a year ago. Suppliers are wary of locking in rates when wholesale prices remain volatile. So the window may close soon.
What it costs a typical 3-bed semi
Take a typical 3-bed semi using 12,000 kWh of gas and 2,900 kWh of electricity per year. On a standard variable tariff at the current cap of £1,928, that household pays about £161 per month. Switch to the cheapest fix at £1,707, and the monthly cost drops to £142, a saving of £19 per month, or £228 per year.
But that saving assumes no other changes. Loft insulation (cost typically £300–£500, saving £125–£200 per year) could cut the bill further. A heat pump (cost typically £7,000–£13,000 after the Boiler Upgrade Scheme grant of £7,500) could reduce heating costs by 20–40%, depending on the property. Both upgrades also improve the EPC rating: loft insulation can lift a D to a C, and a heat pump can push a C to a B.
The Energy Saving Trust estimates that the average household could save £300–£500 per year by combining a fixed tariff with basic insulation measures. That is real money, not theoretical.
What this misses, and what to do now
Yet the £221 warning is only part of the picture. Switching tariffs does nothing to reduce energy consumption. It only changes the unit rate and standing charge. A household that fixes at £1,707 but still uses 12,000 kWh of gas will still face high bills if the winter is cold.
The better strategy is to fix the tariff now and then invest in fabric improvements before winter. The Great British Insulation Scheme offers free or subsidised loft and cavity wall insulation for low-income households, and the Boiler Upgrade Scheme covers part of the cost of a heat pump. Both are open now, but funding is limited and applications can take weeks.
Households on standard variable tariffs can check their current rate by logging into their online account or calling their supplier. Comparison sites like Uswitch or MoneySavingExpert show the best fixed deals available. The deadline is July 1, but the real deadline is the date your current fix ends. If it ends after July 1, you may still be able to switch early without exit fees.
What to do, and by when: check your current tariff today. If you are on a standard variable tariff, switch to the cheapest fix before July 1. Then book a home energy assessment to identify insulation and heating upgrades. Apply for grants through gov.uk by September to have work done before winter. That combination, a fixed tariff plus fabric upgrades, is the only way to beat the £221 gap for good.
Frequently Asked Questions
No, switching tariffs does not change your EPC rating. But combining a fix with insulation or a heat pump can improve your rating by 1-2 bands, which can increase your home's value and eligibility for future grants.
It depends. Most suppliers require you to clear any debt before switching, or arrange a repayment plan. Check with your current supplier first. Some comparison sites allow you to filter by debt status.
