Energy regulator Ofgem has announced a 13% increase to the UK energy price cap for the period covering 1 July to 30 September 2026.

The increase reflects continued volatility in global energy markets, with rising wholesale gas prices linked to the ongoing conflict in the Middle East. Although prices remain well below the peak of the 2022 energy crisis, the latest rise will still place additional pressure on many households already struggling with higher living costs.

• What Is the Energy Price Cap?

The energy price cap applies to customers on standard variable and default tariffs who have not fixed their energy prices with a supplier.

The cap sets:

• The maximum unit rate suppliers can charge for gas and electricity
• The maximum standing charge that can be applied

It is important to remember that the cap is not a limit on total household bills. The amount people actually pay still depends on how much energy they use.

What the Latest Increase Means

The current price cap for a typical household paying by direct debit is £1,641 per year.

Under the previous consumption calculations, this would have increased to around £1,862 annually from July. That would equate to an increase of approximately £18 per month for the average dual fuel household if sustained over a full year.

Alongside the announcement, Ofgem has also updated its Typical Domestic Consumption Values (TDCV), which are used to reflect how much energy households now typically consume.

The updated figures show that households are using:

• Around 7% less electricity
• Around 17% less gas

Because of this change, the revised “typical” annual bill figure from 1 July 2026 will now be £1,663 per year.

Gas Prices Rising Faster Than Electricity

One of the key points from this latest announcement is the difference between gas and electricity price increases.

From July:

• Electricity bills are expected to increase by around 5%
• Gas bills are expected to rise by approximately 24%

This is very different to what happened during the energy crisis, when electricity prices rose sharply alongside gas prices.

The slower rise in electricity costs reflects the increasing amount of renewable energy generation within the UK energy system, helping reduce reliance on gas for electricity production.

Fixed Tariffs Remain Protected

Ofgem estimates that around 40% of customer accounts, approximately 22 million households, are currently on fixed tariffs and will not be directly affected by this latest increase until their fixed deal ends.

For households on standard variable tariffs, suppliers may now begin promoting fixed rate deals as consumers look for greater certainty over future energy costs.

What This Means for Social Landlords

Budget Planning and Affordability Pressures

The increase in the cap is likely to create further financial pressure for many residents, particularly lower income households already vulnerable to fuel poverty.

Although energy usage is generally lower during the summer months, landlords may still see:

• Increased affordability concerns from residents
• Higher demand for tenancy support
• Additional pressure on arrears management services
• Greater demand for budgeting and energy advice

While prices are lower than they were during the height of the energy crisis, costs remain significantly above pre 2021 levels.

Resident Support and Engagement

Ofgem is encouraging any household struggling with bills to contact their supplier as early as possible to access available support options, including:

• Tailored repayment plans
• Financial assistance schemes
• Debt advice services

Social landlords can also help residents by:

• Promoting energy awareness and energy saving advice
• Supporting tariff switching where appropriate
• Encouraging direct debit payment options
• Promoting smart meter adoption
• Signposting residents to benefits and wider support services

According to Ofgem, households moving from standard credit to direct debit could save around £143 per year.

Some suppliers are also offering lower cost or half price electricity periods at weekends for households with smart meters and low carbon technologies.

Long Term Strategic Considerations

While short term price cap fluctuations continue to affect household budgets, the latest increase highlights the continued importance of:

• Retrofit investment
• Insulation improvements
• Low carbon heating systems
• Energy efficiency upgrades
• Resident behaviour change initiatives

Reducing overall energy consumption remains one of the most effective ways to improve affordability and reduce exposure to future market volatility.

For social housing providers, linking energy management with resident wellbeing, compliance targets and sustainability goals will continue to play an important role in long term asset management strategies.

Key Takeaways

• Ofgem has announced a 13% increase to the energy price cap from 1 July 2026.
• Rising wholesale gas prices linked to geopolitical instability are driving the increase.
• Gas prices are increasing significantly faster than electricity prices.
• Fixed tariff customers are largely protected from the latest rise.
• Updated consumption figures reduce the revised “typical” annual bill figure to £1,663.
• Social landlords should continue prioritising resident support and energy efficiency investment.

For more information and official guidance, visit Ofgem.