Ofgem’s price cap will rise by £63 in October, the third increase this year. But households that act before 1 July can sidestep that hike entirely, saving an estimated £316 a year by switching to a fixed-rate tariff. The catch: those deals are disappearing fast.
As reported by Wales Online, the savings figure comes from comparison site Uswitch, which calculates that the average household on a standard variable tariff (SVT) could cut annual bills by that amount by locking in a fix now. UK Energy Secretary Ed Miliband has also urged households to shop around, calling the current window a ‘important opportunity’.
Why the 1 July deadline matters
Energy suppliers are withdrawing their cheapest fixed deals as wholesale gas and electricity prices creep upward. In May 2025, the number of tariffs under £1,700 a year fell by 40% compared with March, according to data from Cornwall Insight shared with Energy UK. The 1 July date is not a government deadline, it is the point at which many suppliers have said they will remove their current best offers.
Households on an SVT are paying roughly £1,738 a year under the current cap. A typical fix available today costs around £1,422. That £316 gap is real money, about £26 a month, and it vanishes once the supplier pulls the deal. Once you miss the window, you are back on the variable rate and exposed to the October rise.
Who qualifies, and who doesn’t
Anyone with a smart meter or a recent meter reading can switch. The process takes 15 minutes on a comparison site such as MoneySavingExpert or Uswitch. You need your postcode and a recent bill. There is no credit check, no home visit, and no change to your existing supply infrastructure. Your new supplier handles the switch within 14 days.
But there are two groups who should think twice. First, households on prepayment meters: some fixed deals are not available to you, and the price cap for prepayment is already lower than for direct debit. Second, anyone who has already fixed in the past 12 months: exit fees of £30–£50 per fuel could eat into the saving. Check your current contract before switching.
What this means for your EPC and home upgrades
Fixing your tariff is not a home upgrade, it is a financial one. But it frees up cash you can redirect into energy-efficiency measures that improve your EPC rating. The Energy Saving Trust estimates that topping up loft insulation to 270 mm costs around £300 and saves £115 a year. The £316 saving from switching tariff could pay for that insulation in a single year, after which the insulation saving compounds.
Similarly, households planning a heat pump or solar installation should fix their energy rate now. A fixed tariff gives you predictable unit costs for 12 months. That makes it easier to calculate payback periods on bigger upgrades. Ofgem data shows that homes with an EPC rating of C or above pay roughly 18% less for heating than those rated D or below, even on the same tariff.
The 1 July deadline is real. Households that act now lock in the saving; those that wait will face the October cap rise with no buffer. Visit a comparison site today, compare the top five fixed deals, and switch before your current supplier pulls the offer.
Frequently Asked Questions
No. Switching tariffs does not change your home's energy efficiency or EPC score. It only changes how much you pay per unit of energy. The £316 saving can be redirected into insulation or other upgrades that do improve your EPC.
Some fixed deals are available to prepayment customers, but the savings are typically smaller, around £150–£200, because the prepayment price cap is already lower. Check with your supplier or a comparison site for prepayment-specific tariffs.
