UK households urged to review energy bills ahead of 2026 price cap changes

UK households are being urged to review their energy tariffs as bills are set to remain high into 2026, despite only modest changes to the energy price cap.

Ofgem has confirmed that the energy price cap will rise slightly from £1,755 to £1,758 a year for a typical household paying by Direct Debit from 1 January to 31 March 2026. For prepayment customers, the cap will increase from £1,707 to £1,711.

Although the increase is small, experts warn that millions of households are still paying more than they need to because they remain on standard variable tariffs.

Shay Ramani, money-saving expert and founder of Free Price Compare, said that many consumers wrongly assume the price cap means they are automatically on the cheapest available deal.

“The energy price cap is not a cheap tariff – it’s just a limit on how high default tariffs can go,” Mr Ramani said.
“In many cases, households can still find fixed deals below the cap, especially if they haven’t switched for a while.”

He explained that energy suppliers are now offering a growing number of fixed-rate tariffs as wholesale prices stabilise, creating fresh opportunities for savings.

“Even small differences of £10–£20 a month add up over a year,” Mr Ramani said.
“Households that last switched before the energy crisis often find they can cut hundreds of pounds a year by moving off expensive default tariffs.”

According to industry data, a large proportion of UK households are currently on standard variable tariffs, which automatically track the price cap and are rarely the cheapest option available.

Mr Ramani urged consumers to take a few simple steps to avoid overpaying:

Check whether they are on a standard variable tariff
Compare available fixed deals against the price cap
Review exit fees before switching
Monitor upcoming price cap changes
Avoid rolling onto default tariffs at the end of a contract

He added that switching energy supplier remains free for most customers and usually takes no more than a few minutes.

“There is still a widespread belief that switching is risky or complicated, but that simply isn’t true anymore,” he said.
“Most switches are completed within a few days, and supply is never interrupted.” Consumers who want to review their options can use independent comparison services to compare energy prices in the UK and see whether a cheaper tariff is available for their household.

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