Ofgem raises UK energy price cap 4% from October 1

Millions of households across Britain will face higher energy bills from October 1, 2026, after the regulator Ofgem confirmed a 4 per cent increase in its energy price cap for the final quarter of the year. The new cap, announced on August 26, 2026, will set a typical annual bill for a dual-fuel household paying by direct debit at £1,723, an increase of £60 per year, or about £5 per month, from the current £1,663. The cap applies to roughly 22 million households on default tariffs and will remain in place until December 31, 2026. Ofgem attributed the rise primarily to higher wholesale gas prices, which have increased by about 11 per cent over the past three months.