Energy bills set to rise by over £200 a year from July

Millions of households could be hit with higher energy bills again this summer, despite prices falling earlier this year.

New forecasts suggest the energy price cap could rise by around 13% in July 2026, adding more than £200 a year to the average household bill.

Bills had finally started to ease after years of steep increases. But experts now warn that could be about to change.

Why are bills going up again?

The latest forecast from Cornwall Insight says rising wholesale gas prices are likely to push bills higher later this year.

Wholesale prices are what energy suppliers pay before gas and electricity reach homes. When those costs go up, customers usually end up paying more too.

If the forecast is correct, the average annual bill could climb to around £1,850.

What is the energy price cap?

The price cap is set by regulator Ofgem and limits how much suppliers can charge for gas and electricity.

It does not cap your total bill. The more energy you use, the more you pay.

But when the cap rises, most households see their monthly payments go up as well.

Another squeeze for households

Many people had hoped the worst of the energy crisis was over after prices started falling earlier this year. But this latest forecast suggests household budgets could come under pressure again heading into summer.

And while £200 may not sound huge spread across a year, many households will feel the extra cost each month.

What to do if you’re worried about paying

If you’re struggling with bills already, the most important thing is not to ignore the problem.

Energy suppliers are expected to offer support to customers falling behind. This can include payment plans, breathing space on arrears and access to hardship schemes in some cases.

There’s more information on what support is available from providers here: Grants, benefits and help to pay energy bills

It’s also worth checking whether you qualify for extra help such as universal credit, pension credit or the Warm Home Discount scheme. You can use our free benefit calculator to check if you qualify.

Small changes at home can help too. Using less energy where possible, avoiding appliances being left on standby and only heating the rooms you use can all make a difference over time. Find more ways to save here: 50 good ways to save on energy during Energy Saving Week

Help is available

We help people find ways to manage rising costs, deal with debt and make their budgets easier to handle. Getting help early can stop money worries building into a bigger problem later on.