London Daily

Focus on the big picture.
Saturday, Apr 11, 2026

What is the energy cap and why are energy bills so high?

What is the energy cap and why are energy bills so high?

Millions of households in England, Scotland and Wales could be paying about £700 a year more for electricity and gas, following a price rise this week.

Energy experts are encouraging customers to take and submit meter readings as the changes take effect, in an attempt to save cash.

How much will my energy bill go up?


From 1 April, about 18 million households on standard tariffs will see an average increase of £693 - from £1,277 to £1,971 per year.

Some 4.5 million prepayment customers will see an average increase of £708 - from £1,309 to £2,017.

The amount your bill will go up depends on how much energy you use.

Energy bills won't rise immediately for customers on fixed rates, but many are likely to see a significant increase when their deal ends.

Why are bills going up?


Bills are going up because the energy price cap - the maximum price suppliers in England, Wales and Scotland can charge households - is being raised.

Energy firms will be able to increase bills by 54% when the new cap is introduced on Friday 1 April.

The price cap is reviewed every six months, and prices are expected to rise yet again in October.

A report by the bank Investec has warned bills could reach £3,000 a year.


Why might I need to read my gas and electricity meters?


Experts encouraged people without smart meters to submit gas and electricity meter readings on 31 March.

This was to ensure that they had logged the use of less expensive rates for energy before the changes took place on 1 April.

Energy companies' phone lines, websites and apps were very busy, and several crashed as a result.

Greg Jackson, chief executive of Octopus Energy, told the BBC that the company was receiving about 40,000 meter readings an hour at one point on Thursday. But he urged people not to panic about submitting a reading before the 1 April deadline.

"I think with most companies, certainly with Octopus, you can give it any time in the next week and... we'll apply it to the day when you took it," he told the BBC's World at One programme.

Mr Jackson added that he was "pretty sure that'll apply universally", with EDF and E.On having said they would do the same.

If you can't submit your readings, you should take a photo with the meter reading and meter serial number both clearly visible to submit at a later date.

It's worth noting too that logging an extra reading to give a more accurate picture of your energy usage could see your bills go up if it is more than your company had forecast.


How do energy prices affect the cost of living?


More households are expected to struggle because of bill increases.

The Resolution Foundation think tank expects the number of homes facing "fuel stress" across the UK to treble to 6.3 million, and says pensioners and people in local authority housing will be hit hardest.

It warns UK households are facing a "cost of living catastrophe".

Food prices are also rising, and an increase in National Insurance in April will leave millions facing higher tax bills.

The Bank of England has put up interest rates for the third time in four months to try to slow price rises, but it has warned that inflation, which tracks how quickly the cost of living changes over time, could hit double-digits later in the year.

Why have gas prices gone up?


A worldwide squeeze on energy supplies pushed the price of gas up last year.

But wholesale prices have risen even higher since the invasion of Ukraine by Russia, which is the world's largest natural gas exporter

The UK gets little of its gas from Russia directly, but prices could still be driven up worldwide if Russian supplies to Europe were affected.

What can I do to save on fuel?


In the past, consumers have been encouraged to shop around when bills rise.

But at the moment better offers - especially fixed deals - are not available. People already on fixed deals are advised to stay put.

Otherwise, households are being encouraged to improve the energy efficiency of their homes.

The Energy Saving Trust says several small changes to our homes and habits could help many people off-set the rise in energy costs by about a third.


What other help is available?


People struggling to afford energy bills can seek advice from charities such as Citizens Advice, Turn2Us or the StepChange debt charity.

All the big energy firms also have hardship funds that can offer assistance if someone is struggling to pay.

The government has said it will offer extra help worth a total of £350 via the council tax system in England too.

The warm house discount scheme will also be expanded to cover three million households. It offers low income households a one-off annual discount on their electricity bill, and was worth £140 in 2021-22.

In October customers in England, Scotland and Wales will receive a £200 rebate on their energy bills. They will have to repay this at £40 a year for five years, starting in April 2023.

The Northern Ireland energy market is separate, but the government has said £150m would be available to support households.

Newsletter

Related Articles

0:00
0:00
Close
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
UK Calls for Full and Toll-Free Access Through Strait of Hormuz Amid Rising Tensions
Starmer Signals Strategic Shift for Britain Amid Escalating Iran-Linked Tensions
UK Issues Firm Warning to Russia Over Covert Underwater Military Activity
OpenAI Halts Stargate UK Project, Casting Uncertainty Over Britain’s AI Expansion Plans
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
UK Deploys Military Assets to Protect Undersea Cables From Suspected Russian Threat
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
UK Accelerates Efforts to Harmonise Medical Technology Rules with United States
Wireless Festival Cancelled After Kanye West Denied Entry to the United Kingdom
Australia’s most decorated living soldier was arrested at Sydney Airport and charged with five counts of war-crime murder for the killing of unarmed Afghan civilians
The CIA’s Secret Technology That Can Find You by Your Heartbeat Successfully Locates Downed Airman
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
×