Thu, 01 Jan 2026

Thu, 01 Jan 2026 Energy prices rise slightly for millions of households as temperatures fall

Millions of households in England, Wales and Scotland are seeing a slight rise in energy bills in the new year.

* Energy bills will rise by 0.2% for households on variable tariffs, equivalent to a £3 annual increase.
* Ofgem's price cap affects England, Scotland, and Wales, but not Northern Ireland.
* The price cap applies to typical usage of 11,500 kWh of gas and 2,700 kWh of electricity per year.
* Standing charges will rise by 2% for electricity and 3% for gas.
* Heavy users of electricity will be affected the most due to rising unit rates.
* Ofgem recommends switching to a fixed tariff to save money.
* Several deals on the market are cheaper than the price cap, with Which? recommending looking for deals under £1,758 per year.
* Vulnerable households in certain areas can receive cold weather payments of up to £25 per week.
* The Warm Home Discount has been extended to more lower-income households.
* Analysts predict an 8% drop in the price cap from April, equivalent to a fall of £138 per year for a typical household.
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