LONDON — Households across Great Britain are being urged to look at fixed energy tariffs as bills are set to rise again in October. The increase comes after a 13% climb at the start of July and means millions of customers on default tariffs will face the highest charges in three years.
From 1 October, gas and electricity prices under the price cap will go up by 4%, taking the typical annual bill for 22 million households to £1,723. That rise is expected just as many people begin using more heating, and analysts are also predicting a further increase in January.
Comparison sites and Ofgem say some fixed deals already beat the new cap by a wide margin. For households willing to switch, the move could lock in lower standing charges and unit rates for one or two years, offering more certainty through the colder months.
What the October price cap rise means for typical households
The latest cap change will affect most homes on standard variable tariffs, while around 11 million households already on fixed deals will not feel the rise until their current agreements end. That means roughly 35% of homes are protected from the immediate increase.
Ofgem said savings are available through fixed tariffs, with some deals priced at £100 or more below the October cap. The regulator has been encouraging customers to compare offers, especially if they are worried about paying more when the weather turns colder.
The cap itself is based on typical usage, so individual bills will still depend on how much gas and electricity each household uses. Even so, the new figure is a clear warning that staying on a default tariff may become more expensive as autumn begins.
Cheapest fixed tariff on the market could save £173 a year
Among the cheapest offers available at the time of writing is a fixed tariff from Fuse Energy, priced at £1,550 a year for a typical-usage home. That is £173 less than the October price cap and £113 below the current cap.
The same deal appears in several forms across comparison sites. Uswitch and Confused.com are offering the Fuse Energy August 2026 Fixed (14m) V1 tariff, while MoneySuperMarket has a version fixed for 18 months called Fuse Energy August 2026 Fixed (18m) V10.
Other suppliers, including Co-op Energy, Octopus Energy, E.ON Next and Ecotricity, also have fixed tariffs that are more than £100 a year cheaper than the October cap for typical users. Some offers are exclusive to comparison sites, while others can be taken directly from the supplier.
Why forecasts for January make switching more appealing
Energy analysts at Cornwall Insight expect bills to rise by a further 9% in January, which would push the typical annual cost to about £1,872, up by £149. That forecast is not yet certain, because the January 2027 cap will not be confirmed until November.
Even so, the expectation of another increase is strengthening the case for households that want to fix now. A tariff locked in for 12 to 18 months could protect customers from both the October rise and any increase that follows in the new year.
Before switching, consumers should check how long is left on their current contract and whether exit fees apply. Gareth Kloet at Go.Compare said those details matter because leaving an existing deal early can reduce or remove the benefit of moving to a cheaper tariff.
Extra help and savings measures that could cut bills further
October’s cap would have been higher without a temporary VAT cut on domestic electricity. The tax will fall from 5% to zero between 1 October 2026 and 31 March 2027, which Ofgem says will save a typical household about £45 a year. The reduction is already reflected in the cap and will be applied automatically by suppliers.
Ofgem also says many suppliers offer cheaper electricity rates for smart meter customers who use power outside peak times. That can be worth asking about, particularly for households that can shift some usage to cheaper periods.
Sarah Coles at AJ Bell said families should also check whether they qualify for support schemes. One option is the warm home discount, which will reopen in October and gives eligible households a one-off £150 reduction on their electricity bill.
Alongside switching tariffs, cutting usage remains one of the most effective ways to keep bills down. For many homes, the best outcome may come from a mix of a fixed deal, lower consumption and any help they are entitled to claim.
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