Ofgem announced the October level of the energy price cap on 25 August 2026. Uswitch, an independent comparison service, responded the same day, saying the increase arrives as heating use begins and warning that suppliers are already pointing to a further rise in January1.
Richard Neudegg, director of regulation at Uswitch.com, said gas costs for customers on the price cap would be almost 27% higher than the same period last year1. He attributed continued pressure on wholesale gas prices to the Middle East conflict and to ongoing supply challenges, which he said are set to affect household bills as winter demand grows1.
"This is going to be another difficult winter. For price cap customers, gas costs will be almost 27% higher than the same period last year"
Uswitch said more than half of households report already being worried about paying for heating this winter, and that those on standard tariffs may face a double blow, with suppliers pointing to another rise in January1. Neudegg said the government's electricity VAT cut, together with the earlier removal of certain levies from bills, meant this cap level is not as high as it might otherwise have been, but that these measures have not been enough to hold off price cap increases1.
The announcement did not give the cap level itself in pounds, the unit rates, or the standing charges that apply from October. Those figures have not been reported here. The history of cap levels and announcement dates sets out how each level has been set since 2019.
| What Uswitch said | Figure |
|---|---|
| Gas costs for price cap customers, against the same period last year | almost 27% higher |
| Households saying they are worried about paying for heating this winter | over half |
| Possible further rise | January, according to suppliers |
Why it matters for households
The cap limits the unit rate and standing charge a supplier can charge on a standard variable tariff, so a higher level feeds directly into what a home pays for each unit of gas and electricity used. Because the increase lands as heating goes on, the effect on a winter bill is larger than the percentage change alone suggests: more units are used at the same time as the rate per unit rises. Uswitch's figure of almost 27% applies to gas costs for price cap customers, not to the total bill1.
For a household's energy independence, the practical question is how much of the winter's cost is fixed in advance. A standard variable tariff moves with each cap level, so the January question raised by suppliers matters as much as the October one. Fixed deals remove that exposure for their term, but they carry exit fees and a rate that may end up above the cap if wholesale prices fall. The wholesale market is where the pressure Uswitch describes originates.
Households on prepayment meters and those paying by direct debit do not pay the same rates under the cap, and the gap between the two is set out in the comparison of prepayment and direct debit. A bill can also exceed the headline cap figure for reasons unrelated to the cap level, including usage and payment method, as explained in why a bill is higher than the cap. The cap does not apply in Northern Ireland, which has its own arrangements.
What happens next
The new cap level takes effect in October 2026. Uswitch said suppliers are already pointing to another rise in January, and that fixing before October would avoid both increases1. No date has been given for the January announcement.