Energy Price Cap Update January 2026
The energy price cap has been updated for January 2026, and it’s impacting millions of households who may already be struggling.
Ofgem have announced that the annual bill for a typical dual fuel household using the standard amount of energy will rise by 0.2% to £1,758 per year, which means an increase of around 28p a month for the average household.
However, when adjusted for inflation, bills are actually £37 lower than this time last year.
What Is the Energy Price Cap?
The energy price cap, set by Ofgem, limits the maximum amount that suppliers can charge per unit of gas and electricity. It’s designed to protect consumers from excessive prices, particularly those on standard variable tariffs. However, it’s important to note that the cap is not a total limit on your bill – actual costs depend on your usage. The cap merely restricts the price per unit and the standing charges.
The next one comes into effect from the 1st of January 2026.
The good news is that significantly more support is being offered by the government this winter. Anyone on means-tested benefits or a low income will automatically receive the £150 Warm Home Discount. Previously, some people missed out due to the size of their home, but that rule has now been scrapped.
There’s also been a U-turn on the Winter Fuel Payment. This year, many more pensioners will qualify, as it’s now being extended to those with a taxable income under £35,000. Payments will be made automatically in November or December, directly into your bank account if you’re eligible.
See all local energy grants and support available here
How can we support you with your home energy?
At Green Energy Switch, we recognise the ongoing challenges that you may face in managing your energy bills. Every penny saved on your energy bills can help make a significant difference to your quality of life. That’s why we want to bring you as much support as possible help ease the burden.
LEAP (Local Energy Advice Partnership)
LEAP is a completely free energy advice service, helping you to stay warm and save money on your energy bills.
We are proud to deliver the LEAP service for residents in Peterborough, South Cambridgeshire, Rutland, and Fenland, in partnership with the local councils.
However, LEAP is a nationwide service, so if you live outside these areas, make sure to check if LEAP is available in your region and take advantage of the free support on offer.
What LEAP Offers:
Free Home Visits: Our Home Energy Advisors conduct completely free home visits, which often lead to referrals for income maximisation services or assessments for larger energy efficiency measures and appliances. These are done in the comfort of your own home and at a time that suits you.
Free Energy-Saving Advice: Our Home Energy Advisors also provide free assessments and energy-saving advice over the phone, making it accessible for those who may not be able to schedule a home visit. Our experts offer practical tips and recommendations tailored to your circumstances, empowering you to make informed choices about your energy usage.
Free Energy-Saving Measures: You can receive free energy-saving measures such as LED light bulbs, draught excluders, radiator panels, and more. These simple yet effective interventions can lead to significant savings on your energy bills while also reducing your carbon emissions.
Eligibility:
LEAP is open to all types of householders – homeowners, private renters and social housing tenants.
You may be eligible for the LEAP service if you meet the following criteria:
- You have a low income (less than £31,000)
- You receive Universal Credit
- You receive Housing Benefit
- You receive an income or disability-related benefit
View full eligibilty here
Get free energy support today
If you’re struggling or seeking ways to reduce your energy bills, we encourage you to reach out and discover how our services can make a difference in your life.
ABOUT US
Green Energy Switch (GES) delivers a broad range of energy services across the UK; specialising in working with social landlords and local authorities. Established in 2006, GES is a subsidiary of environmental charity PECT. We gift-aid any profits to PECT to help fund their vital work. In doing so, we are the lead sponsor of their Forest project. So far over 131,000 trees have been planted, equating to a remarkable reduction of over 1,300 tonnes of carbon emission.
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