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Energy Bills Tick Up: Winter Shock for Millions
1 Jan
Summary
- Energy price cap rose slightly on January 1, 2026.
- Typical household bills will increase by £3 annually.
- Cheaper energy costs are anticipated from April 2026.
As 2026 begins, millions of households across England, Scotland, and Wales are experiencing a slight increase in their energy bills. Ofgem has adjusted its price cap, leading to a minimal rise of 0.2% for those on variable tariffs. This change translates to an approximate £3 annual increase for a typical household.
Consumer advocates are raising concerns that this latest adjustment, though small, arrives during the coldest period of the year, potentially prolonging a winter of high energy costs for billpayers. The timing of this increase is particularly impactful given the current season.
Despite the immediate rise, a more optimistic forecast is emerging. Measures announced in the recent Budget are expected to bring down the cost of energy starting from April 2026, offering eventual relief to households.
