Just as the heating goes on, there’s more bad news on energy bills. Forecasts suggest the price cap could rise by around a quarter in January, one of the biggest quarterly jumps since the 2022 to 2023 crisis.
Ofgem will confirm the new cap by November 25. Here’s what the experts expect, why bills are rising again, and the help available for people on benefits and pensioners.
Where bills are now, and where they could go
The price cap sets the maximum suppliers can charge per unit of energy. It isn’t a cap on your total bill. Figures are for a typical household paying by Direct Debit.
| Period | Typical yearly bill | Status |
|---|---|---|
| October to December 2026 | £1,723 | Confirmed |
| January to March 2027 | about £2,150 to £2,200 | Forecast |
- E.ON Next forecasts £2,166, a rise of £443 a year.
- Uswitch says the average forecast from British Gas, EDF and E.ON points to a rise of about 27%.
These are forecasts, not decisions. The January cap is based on wholesale prices from August 19 to November 17, so the final figure could still move.
Why bills are going up again
Wholesale gas prices have risen sharply. Forecasters point to supply worries linked to tensions in the Middle East and concerns about how much gas Europe has stored for winter. Wholesale costs make up more than 40% of the price cap, so when they jump, bills follow.
Some relief already announced
In last week’s Budget, the government confirmed:
- a £100 Household Energy Payment from January 2027 for about 20 million households in council tax bands A to D in England
- VAT relief on electricity extended to July 2027
- plans to scrap gas standing charges from 2027 at the earliest
These help, but they won’t fully offset a rise of this size.
Help if you’re on benefits or a pensioner
- Winter Fuel Payment: up to £300, paid automatically to most pensioners in November and December
- Warm Home Discount: £150 off your electricity bill if you get Pension Credit, Universal Credit, Housing Benefit or income-related ESA
- Cold Weather Payments: £25 for each very cold week if you’re on certain benefits
- Energy debt relief: a one-off write-off of crisis-era debt is being designed for people on benefits and pensioners
- Supplier hardship funds: many energy companies offer grants if you’re struggling
What you can do now
- Consider a fixed deal. Comparison site Uswitch says fixed tariffs don’t currently beat the October cap, but should beat the January one if the forecasts are right. Fixing also protects you from further rises. But compare carefully, check exit fees, and remember forecasts can be wrong.
- Take a meter reading on December 31 or January 1, so you’re billed correctly at the old rates for December. A photo with the date is a good record.
- Check you’re getting everything you’re entitled to, especially Pension Credit. It unlocks the Warm Home Discount and Cold Weather Payments.
- Talk to your supplier early if you’re worried about paying. They must offer affordable repayment plans.
- Get free advice from Citizens Advice or the charity StepChange if you’re in debt.
We’ll update this article when Ofgem confirms the January cap.
Sources: Uswitch, E.ON Next price cap predictions and GOV.UK, What the Autumn Budget 2026 means for your energy bills.
Maria is a dedicated news writer covering the latest UK updates on DWP, PIP, State Pension Triple Lock, Child Benefit, Universal Credit, and driving licence regulations. She focuses on explaining government announcements, benefit eligibility, payment changes, pension increases, and new regulations in a clear and easy-to-understand way.