How to sidestep the upcoming 4% rise in the UK energy price cap
The energy price cap will increase by 4% from October 1, adding about £60 to annual bills, but consumers can avoid the hike by switching to fixed-term tariffs.
Starting October 1, the energy price cap for typical households on standard tariffs in Wales, England and Scotland will climb by 4%, translating to an extra £60 per year and pushing average annual bills to £1,723. To offset heating costs, the UK Government has removed VAT from electricity bills until March 2027, automatically reducing the cap by about £45 for all customers. Martin Lewis, founder of MoneySavingExpert, explains that those on standard tariffs can completely avoid the increase by switching to fixed-term contracts, which freeze rates for one or two years.
He recommends the E.on Next Fixed 12m Exclusive v10 as the cheapest 12-month fix, offering a 4.2% discount versus the new cap, and points to longer-term options such as Fuse Energy’s 24-month fix and E.on Next’s 24-month exclusive deal. Both new and existing customers can benefit from these contracts, but they must compare offers rather than staying with their current provider.
Why it matters
Households can prevent higher energy bills by choosing fixed-term tariffs before the price-cap rise takes effect.
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