Ofgem published the energy price cap levels for 1 January to 31 March 2026 on 21 November 2025, alongside confirmation that it has set out plans for a Debt Relief Scheme that aims to support around 195,000 people who claim means-tested benefits when it launches in early 20261.
For a typical household using electricity and gas and paying by Direct Debit, the cap means a small monthly increase of 28 pence1. The annual cost for that household would be £1,758 per year, a change of 0.2%1. Compared with the level between January and March 2025, the cap is 1% or £20 higher, but adjusted for inflation it is 2% or £37 lower than the same period in 20251.
The rates for the quarter are set out below. They are averages across England, Scotland and Wales and include VAT at 5%1.
| Rate | Electricity | Gas |
|---|---|---|
| Unit rate, Direct Debit | 27.69 pence per kWh | 5.93 pence per kWh |
| Daily standing charge | 54.75 pence per day | 35.09 pence per day |
The cap covers households on a default tariff paying by standard credit, Direct Debit, prepayment meter or Economy 7 meter1. Ofgem states that the actual amount paid depends on how much energy a household uses, where it lives and the type of meter it has1. Ofgem reviews and sets the level every three months1.
On debt, Ofgem said:
"We have set out plans to change how debt is managed in the system through a Debt Relief Scheme. When the scheme launches in early 2026, it aims to support around 195,000 people who claim means-tested benefits."
The announcement does not set out the eligibility rules, the value of any relief or how households will be enrolled. Those details have not been reported in the material published with the cap decision1.
Why it matters for households
The cap sets the maximum a supplier can charge for each unit of energy and the daily standing charge on a default tariff, so it fixes the ceiling on the unit price rather than the size of the bill1. A household that uses more energy than the typical figure will pay more than £1,758 a year, and one that uses less will pay less1. Standing charges are incurred regardless of how much energy is used, which means a large part of a bill is fixed before any consumption is counted1.
For a household carrying arrears, the practical question is how the debt is treated alongside the ongoing bill. Ofgem's energy debt and repayment plans route runs through the supplier, which must help customers who say they cannot pay, and can set up a repayment plan or provide emergency credit1. The Energy Debt Relief Scheme is a separate mechanism intended to change how debt is managed across the system rather than case by case1. Households on means-tested benefits are the group named in the announcement, and which benefits qualify for energy grants is a distinct question from eligibility for this scheme, which has not yet been published1.
Energy independence at household level rests on the gap between the capped unit price and what a home actually consumes, and on whether arrears are cleared or carried. The cap level for this quarter is marginally higher than a year earlier in cash terms and lower once inflation is taken into account1. The Ofgem price cap is reviewed quarterly, so the figure that applies from April is not yet known1.
What happens next
The levels for 1 April 2026 to 30 June 2026 will be published by 25 February 2026, and Ofgem may publish earlier if external reasons require it1. The Debt Relief Scheme is stated to launch in early 2026, with no date given beyond that1.