Life News
UK energy price cap to rise 13% in July: £221 more a year, and why you might fix now
Britain's energy regulator Ofgem said on May 27 that its price cap will rise 13% for July 1 to September 30. A typical dual-fuel household paying by direct debit goes from £1,641 to £1,862 a year, about £18 more a month. Gas bills rise 24% and electricity about 5%. Ofgem said wholesale prices rose 28% over three months because of the conflict in the Middle East, while more renewable generation limits the rise in electricity.
"Today's price change reflects continued volatility in global energy markets." — Tim Jarvis, Ofgem chief executive
The Press Association report carried by the Shropshire Star linked the jump to Iran's blocking of the Strait of Hormuz and said about 40% of accounts, 22 million, are on fixed deals and unaffected. Cornwall Insight expects October's cap to be close to July's even if the conflict ends soon. Citizens Advice called the rise "painful news for already-stretched households", and the End Fuel Poverty Coalition said the energy industry made over £3 billion in UK profits in the first three months of 2026.
Comparison site Uswitch called it the largest percentage rise since 2024 and gave the new rates: 26.11p per kWh for electricity with a 57.19p daily standing charge, and 7.33p per kWh for gas with 29.04p a day. Its advice: households on a standard variable tariff should look for a fix that beats £1,862, and anyone whose fixed deal ends within 49 days can switch without exit fees.
How each outlet framed it
- Ofgem — the official figures and the gas-versus-electricity split.
- Shropshire Star (PA) — political and charity reaction, and the outlook for October.
- Uswitch — unit rates and when switching makes sense.
Where the numbers differ: Ofgem also published a lower figure of £1,663 a year using updated typical usage, about 7% less electricity and 17% less gas. The £1,862 figure uses the old usage values, so it is the one comparable with April's £1,641.