Energy Price Cap predictions: new Ofgem increase may add £100 to UK gas and electricity bills in April 2026
This article contains affiliate links. We may earn a small commission on items purchased through this article, but that does not affect our editorial judgement.
Rising infrastructure and policy costs mean households could face even higher energy bills next spring 💡
- UK households could face a £100 rise in energy bills from April 2026
- October’s 2% price cap increase already nudges bills from £1,720 to £1,755
- Rising costs come from network upgrades and a levy for new nuclear projects
- Social tariffs may help vulnerable households cope with higher bills
- Switching to fixed energy deals now could save households hundreds per year
Households are being warned to brace for yet another squeeze on their energy bills next spring, with experts predicting the average home could see costs jump by around £100 from April 2026.
The warning, issued by energy analysts Cornwall Insight, comes just as Ofgem’s October price cap increase takes effect, nudging bills up by 2% and pushing the typical annual dual-fuel direct debit household bill from £1,720 to £1,755.
And while a small dip in January could briefly ease pressure, the relief looks set to be short-lived.
Cornwall Insight forecasts the cap will fall slightly to about £1,725 in January, before climbing back up again in April as new network and policy costs are added to bills.
Why bills might be going up again
Unlike last year’s surges driven by wholesale gas prices, this time it’s not the raw cost of energy that’s the main culprit.
Instead, the expected rise in April will be fuelled by higher charges to operate and upgrade Britain’s gas and electricity networks – essentially the cost of keeping pipes and power lines running, and preparing the grid for the future.
A levy to help fund new nuclear power projects, part of the Government’s long-term clean energy plans, is also expected to add to rising costs.
Craig Lowrey, principal consultant at Cornwall Insight, said that while January’s dip might feel like good news, “any fall would represent a pause rather than a permanent drop.”
He added: “Running and upgrading Britain’s energy system is becoming more expensive, and these costs are starting to show up on bills.”
A spokesperson for the Department for Energy Security and Net Zero said the Government’s long-term strategy is focused on clean energy investment to permanently bring down bills.
They warned that Britain’s outdated infrastructure, combined with volatile fossil fuel markets, leaves families vulnerable without significant upgrades.
How much could your bill rise?
If Cornwall Insight’s forecast proves correct, households on the standard variable tariff could see the annual price cap increase from £1,725 in January to around £1,825 in April – an extra £100 on top of already stubbornly high bills.
That’s on top of October’s increase, meaning many households will already be paying £35 more a year from this month.
For families already struggling with higher food and housing costs, even modest increases add up quickly.
Why social tariffs could be the answer
With no sign of a long-term fall, campaigners and energy experts are renewing calls for social tariffs – discounted energy prices for the most vulnerable households.
These would act as a safety net for pensioners, low-income families and those with health conditions who rely on keeping their homes warm.
Lowrey stressed that “the price cap alone cannot solve this crisis,” urging an honest national debate about how to fund the transition to cleaner, more secure energy without leaving households behind.
What households can do now
Energy experts say there are ways to get ahead of the predicted rise. Will Owen, from comparison site Uswitch, pointed out that there are currently 26 fixed deals priced below the October price cap, some saving the average household up to £234 a year.
Households on a standard variable tariff may want to explore switching now, before April’s hike comes into effect.
Even simple steps like submitting regular meter readings, checking standing charges, and ensuring you’re on the best available tariff can help prevent creeping costs.
Are you struggling to make ends meet as costs continue to rise? You can now send your stories to us online via YourWorld at yourworld.net/submit. It's free to use and, once checked, your story will appear on our website and, space allowing, in our newspapers.
With household expenses continuing to rise and energy bills still higher than pre-crisis levels, more people are turning to Utility Warehouse (UW) to save money. UW lets you bundle services like broadband, mobile, energy and insurance into one streamlined account—reducing hassle while unlocking multi-service discounts. The more you bundle, the more you save.
Customers benefit from a single monthly bill, up to £400 towards early exit fees, and access to cashback on everyday spending. UW also offers the UK’s cheapest variable energy tariff when bundled, helping shield households from further price hikes.