British Gas Energy Trust published a response on 1 September 2026 to Ofgem's announcement that the energy price cap will rise by 4% from 1 October, taking the annual figure for a typical dual-fuel household paying by Direct Debit to £1,7231. The trust said the announcement "may cause concern for households preparing for winter" and noted that the cap limits the amount suppliers can charge for each unit of energy, not a household's total bill, which depends on individual use1.
The trust's interim chief executive, Tracey Talbot, said changes in energy costs "can create uncertainty for people already managing tightly stretched household budgets"1. The trust said it wrote to the Prime Minister in July 2026 setting out five priorities for government: a national mission to end fuel poverty; an energy affordability guarantee through a social tariff and a national energy debt strategy; investment in warm, energy-efficient homes; empowering local leaders to deliver place-based solutions; and investment in trusted community organisations providing advice, support and crisis prevention1. It said it distributed £15.5 million in practical support in 2025-26 through energy debt grants, white goods, fuel vouchers and in-person money and energy advice delivered by funded organisations1.
The cap took effect on 1 October 2026. Consumer Scotland said the increase was "the equivalent of about £60 per year" and that the cap "only affects standard variable tariffs", with customers on fixed tariffs protected until their contract ends2. Energy UK said wholesale gas prices were at a three-year high and that energy debt was predicted to reach £7 billion by the end of 20264. The Daily Record reported that gas unit prices under the cap rose to a maximum 7.97p per kilowatt hour, an increase of 27 per cent year on year, and that the five per cent VAT levy on household electricity was removed until 31 March next year, a measure the UK Government estimated would save the average bill payer around £45 a year, with VAT on gas unchanged5.
| Item | Figure |
|---|---|
| Typical dual-fuel Direct Debit bill from 1 October 2026 | £1,723 a year1 |
| Increase | 4%, about £60 a year2 |
| Previous typical figure | £1,6636 |
| Cornwall Insight forecast for 1 January 2027 | £1,999, up £276 or 16%5 |
| Energy debt forecast by end of 2026 | £7 billion4 |
"Changes in energy costs can create uncertainty for people already managing tightly stretched household budgets. Our experience shows that the strongest outcomes are achieved when immediate assistance is combined with trusted, holistic advice addressing debt, income and people's wider circumstances."
Why it matters for households
The cap sets maximum unit rates and standing charges rather than a ceiling on what a home pays, so a household using more energy than the typical figure will pay more than £1,7231. Consumer Scotland said the increase would "hit those who use gas hardest" and that its Energy Affordability Tracker found more vulnerable consumers were likely to be hit hardest2. Energy UK said the UK's continued reliance on international gas markets leaves households exposed to global price volatility, and that accelerating electrification would protect households from future price shocks and strengthen energy security4. For a home weighing up insulation, solar, a battery or a heat pump, the unit rate is the figure that determines how quickly lower consumption or self-generated electricity changes the annual bill.
What happens next
Ofgem will set the price cap covering January to March 2027 on 25 November5. Cornwall Insight forecasts the typical dual-fuel bill could rise by another £276 to £1,999 a year from 1 January 2027, a 16 per cent increase on the October cap and the biggest rise in four years; this is a forecast, not a confirmed increase5. Consumer Scotland said further significant rises in January were being forecast and that it is developing proposals for the UK and Scottish governments to improve the use of data so support can be better targeted, and is asking the UK Government to introduce a debt relief scheme for households who are struggling2. Energy UK called for additional targeted support this winter as a stepping stone to an enduring social discount scheme4. The End Fuel Poverty Coalition has called for an "emergency heat tariff" and for gas prices to be capped at 10p per kWh5.
Sources7 cited
- Price cap change reinforces the need for a long-term plan to end fuel poverty - British Gas Energy Trust, britishgasenergytrust.org.uk
- Rising energy bills ahead of winter deepen affordability pressures | Consumer Scotland, consumer.scot
- Rising energy bills ahead of winter deepen affordability pressures | Consumer Scotland, consumer.scot
- Energy UK responds to introduction of October price cap - Energy UK, energy-uk.org.uk
- Energy bills could rise by £276 in January under new price cap forecast - Daily Record, dailyrecord.co.uk
- New energy price cap starts today - 10 best fixed deals to cut costs | Personal Finance | Finance | Express.co.uk, express.co.uk
- Energy bills are rising today - what you can do now to cut your costs - The Mirror, mirror.co.uk