The £111 rise in context
The energy price cap will climb by £111 for a typical UK household from 1 October 2026, pushing average annual dual-fuel bills to approximately £1,928. The Mirror first reported the figure, and AOL.co.uk confirmed the same number. The increase amounts to about £9.25 extra per month, a modest but unwelcome addition for households already stretched by inflation.
The cap, set quarterly by Ofgem, limits the unit price suppliers can charge for electricity and gas on standard variable tariffs. This latest adjustment follows a period of relative stability, with the previous cap having edged down slightly. But wholesale gas markets have tightened again, and network charges, the cost of moving energy around the grid, are rising too.
Who pays, and who doesn’t
The £111 figure applies to a typical household using 12,000 kWh of gas and 2,900 kWh of electricity per year. If your home uses more, say, a draughty 3-bed semi with single glazing and an old gas boiler, your actual bill could be £200 or more above the cap average. Conversely, a well-insulated flat with efficient heating might see a smaller rise.
The cap does not apply to households on fixed deals, which now cover about 30% of the market. Those customers are insulated from this rise, but their deals may expire soon. For the 70% on standard variable tariffs, the increase is automatic from 1 October.
What this means for your EPC and grants
A £111 rise sharpens the arithmetic for energy-efficiency upgrades. A typical 3-bed semi with an EPC rating of D or E could cut its annual bill by £300-£500 through loft insulation, cavity wall insulation, and double glazing. Add a heat pump and solar panels, and the savings can exceed £1,000 a year, more than offsetting the cap increase.
The Boiler Upgrade Scheme offers £7,500 off the cost of an air-source heat pump, while ECO4 provides free insulation and heating upgrades for low-income households. The Home Upgrade Grant (HUG2) covers off-gas homes in England. For landlords, the Minimum Energy Efficiency Standards (MEES) require a minimum EPC rating of E from 2028, rising to C by 2030. A £111 bill rise only makes compliance more urgent.
But, and this is the catch, grant funding is limited. ECO4 applications can take months to process, and installer capacity is stretched. Homeowners should apply early, ideally before the winter heating season begins.
How to act now
The £111 rise is not a one-off. Ofgem has signalled further increases in early 2027 if wholesale prices remain high. The only durable defence is to reduce your home’s energy demand.
Start with a free energy audit from your supplier or a local council scheme. Check if you qualify for ECO4 or the Boiler Upgrade Scheme. If you’re a landlord, review your EPC rating now, the MEES deadline is closer than it seems. For owner-occupiers, consider a heat pump quote: installation costs have fallen 15% in the past year, and the £7,500 grant makes the payback period as short as 4-5 years.
Finally, switch to a fixed tariff if you can. Fixed deals are currently 5-10% cheaper than the cap, and locking one in now could save you £100-£200 over the next year. Use a comparison site, but check the exit fees and the supplier’s customer service record.
The price cap rise is a fact. Your response to it is a choice.
Frequently Asked Questions
The energy price cap is rising by £111 per year for a typical dual-fuel household, taking the average annual bill to around £1,928. The increase takes effect from 1 October 2026.
Yes. The Boiler Upgrade Scheme offers £7,500 off heat pumps, ECO4 provides free insulation and heating for low-income households, and the Home Upgrade Grant covers off-gas homes. Check your eligibility at gov.uk.
For a typical 3-bed semi, a heat pump can cut heating costs by 20-30% compared to an old gas boiler, and solar panels can save £300-£500 a year on electricity. Combined with insulation, total savings can exceed £1,000 annually.
