Ofgem’s price cap for 1 October to 31 December 2026 puts the typical dual-fuel household paying by Direct Debit at £1,723 a year, which works out at about £144 a month. That is a budgeting benchmark, not a fixed monthly payment, because the amount you pay depends on your own usage and circumstances.
What is the average monthly energy bill in the UK?
Annual figure and monthly equivalent
| Measure | Figure | Source |
|---|---|---|
| Typical dual-fuel household bill, Direct Debit, 1 Oct to 31 Dec 2026 | £1,723 a year | Ofgem, published 26 Aug 2026 |
| Monthly equivalent | About £144 (£1,723 ÷ 12 = £143.58, rounded) | Own calculation from the Ofgem figure |
The £144 is a simple division of the annual figure by 12. It is not a separate published statistic.
Why the monthly figure is an average
The £1,723 represents a typical level of use, so a household that uses more energy pays more, and one that uses less pays less (Turn2us, a charity, 2026).
Payment method changes the comparison
Prepayment customers save about £45 on average compared with Direct Debit (Ofgem, 26 Aug 2026). When you compare your bill with the benchmark, first confirm which payment method you use, since the same level of use can produce different amounts.
How the Ofgem price cap works
The Ofgem price cap sets a maximum price per unit of energy that suppliers can charge. It limits the unit rate, not the total bill. Your actual cost depends on how much energy you use, your region, your payment method and your meter type, so two households on the same cap can pay different amounts.
The cap applies to default tariffs and standard variable tariffs only. Customers on these tariffs see their prices change when the cap changes. Contract type is shown on your energy bill and in your supplier’s tariff documents, so check there before assuming which rules apply to you.
Ofgem states that the current cap is 52% below its 2022 peak. Compared with that peak, the cap has fallen substantially, but this does not mean bills are at 2022 levels or back to pre-crisis costs.
The cap is reviewed quarterly. Ofgem announces each new level before it takes effect. The next announcement dates are:
- 25 November 2026
- 23 February 2027
- 26 May 2027
What changes from October 2026?
From 1 October to 31 December 2026, Ofgem’s price cap rises by 4%. The typical dual-fuel household paying by Direct Debit moves from £1,663 to £1,723 a year. The increase is not spread evenly across fuels. The government removed VAT on domestic electricity, which keeps electricity bills roughly stable, while gas bills rise by 8%.
| Item | Effect for October to December 2026 |
|---|---|
| Typical annual bill, dual-fuel, Direct Debit | £1,663 to £1,723 (up 4%) |
| Electricity bills | Roughly stable, because of the VAT removal |
| Gas bills | Up 8% |
| Impact of the VAT removal | Without it, the rise would have been about £45 higher |
The VAT change is the reason the overall increase stays at 4%. Gas carries the full rise, so households that use more gas than electricity will feel the change more than the average figure suggests. Households with a higher share of electricity use see little movement in that fuel.
Where does energy fit in the household budget?
Energy falls under the largest spending category in UK household budgets. The Office for National Statistics (ONS) reports that average weekly UK household spending was £676.60 in the year ending March 2025. Its largest category, labelled Housing (net), fuel and power, accounted for 18% of that total, or £118.40 a week. In real terms, that category rose 5% over the year.
| Measure | Figure | Period |
|---|---|---|
| Average weekly household spending | £676.60 | Year ending March 2025 |
| Housing (net), fuel and power, per week | £118.40 | Year ending March 2025 |
| Share of total spending | 18% | Year ending March 2025 |
| Change in the category over one year | Up 5% in real terms | Year ending March 2025 |
These figures are averages across all UK households, so they show where energy sits in a typical budget rather than what any one household pays. The 18% share means that roughly 18p of every pound spent in an average week goes to this category.
To express the weekly figure in monthly terms, multiply £118.40 by 52 and divide by 12, which gives about £513 a month (my own calculation). This is a planning reference, not a bill amount.
Because the ONS category combines housing with fuel and power, the comparison works best when you isolate the same items. Your gas and electricity costs are the energy part, and rent or mortgage costs belong to the housing part.
Are all households affected by the cap?
Not every household sees the same change. According to Ofgem (26 August 2026), about 35% of households, around 11 million, are on fixed tariffs and are not affected by the cap change. A household on a fixed deal keeps its agreed rate until the fixed period ends, whatever Ofgem announces for the cap.
| Tariff type | Affected by the cap change? | Source figure |
|---|---|---|
| Fixed tariff | No | About 35% of households (around 11 million) |
| Default or standard variable tariff | Yes | Cap applies to these tariffs |
Payment method changes the cost without changing the cap. Ofgem states that prepayment customers save about £45 on average compared with Direct Debit. This is an average across households, so it shows the typical gap, not a guaranteed saving for a specific account. Ofgem reports that prepayment customers save about £45 on average compared with Direct Debit. The sources used here do not explain the reason for this gap.
To check your own situation, compare your payment method’s cost with the Direct Debit figure.
Key dates: Ofgem announcements
The next Ofgem price cap announcement is due on 25 November 2026. It sets the cap for the period after the current one, which runs from 1 October to 31 December 2026. Two more scheduled announcements follow in 2027, on 23 February and 26 May.
The cap is reviewed quarterly, which means four review points per year. Each review produces a new announcement, and the cap level stays in place until the next review takes effect.
| Announcement date | Role in the cycle |
|---|---|
| 25 November 2026 | Sets the cap for the next cap period, after 31 December 2026 |
| 23 February 2027 | Scheduled quarterly review announcement |
| 26 May 2027 | Scheduled quarterly review announcement |
For budgeting, the practical effect is that the unit price you pay can change at each cap period boundary, not just once a year. Mark the announcement dates in your budget calendar so you can compare each new figure with your current bills.
Where to get help with bills
Three steps can help with energy bill difficulties: confirm which tariff you are on, contact your supplier before a shortfall, and check support from official and charity sources.
Checking whether a tariff is default or fixed
Find the tariff name and any end date on your latest bill or in your supplier’s online account. Keep the tariff name ready, because support staff will ask for it first.
| Tariff type | Covered by the cap | Affected by the cap change |
|---|---|---|
| Default or standard variable | Yes | Yes |
| Fixed | No | No |
Contacting your supplier before a payment shortfall
Contact your supplier as soon as you expect a payment shortfall, before a payment is missed. Ask what support they offer for customers in payment difficulty, such as a revised Direct Debit amount or a referral to their hardship or debt team. Record the date, the name of the person you spoke to, and what was agreed.
A supplier cannot change the cap itself, but you can ask what support it offers with payments.
Charity and official support routes
Two kinds of source are relevant:
- Official sources: Ofgem publishes the price cap rules and the data cited in this article. Use it to confirm how the cap works and which tariffs it covers.
- Charity sources: Turn2us, the charity cited for the cap rules in this article, publishes guidance on financial support. Check it against your own circumstances to see whether any support might apply to you.
Work through these in order: confirm your tariff type, contact your supplier, then review official and charity guidance. Any support depends on your supplier’s policy and your circumstances, and is not automatic. If you cannot agree a solution or you are in debt, seek free independent advice. Keeping a written record of each contact makes follow-up easier if the situation changes.
Frequently asked questions
Is £144 a month what I will actually pay ?
The benchmark of about £144 a month is £1,723 divided by 12, which is a calculation rather than a published monthly figure. Your own bill depends on how much energy you use, your region, your payment method and your meter type.
Does the price cap apply to my tariff ?
The cap covers only default tariffs and standard variable tariffs, so households on fixed tariffs are not affected when it changes. Your tariff type appears on your energy bill and in your supplier’s tariff documents.
Can I compare my energy costs with the ONS spending average ?
Only approximately. The ONS category “Housing (net), fuel and power” averaged £118.40 a week in the year ending March 2025, but it includes net housing costs, so it does not match gas and electricity costs alone. If your bill is higher than your budget allows, supplier payment support is not automatic, so seek free independent advice on debt or consumer issues if you cannot agree a solution.
