From 1 April 2026, millions of British households will see their energy bills change as Ofgem’s new price cap takes effect. For those on standard variable tariffs — still the majority of energy customers in the UK — the update brings some modest good news, at least in the short term. Here’s what you need to know about what’s changing, what it means for your bill, and what might be coming next.
The New Price Cap: The Headline Numbers
Ofgem has set the April 2026 price cap at £1,641 per year for a typical dual-fuel household paying by Direct Debit. That’s approximately £117 cheaper than in the previous quarter, which will come as a small relief to households that have been managing tight budgets through a difficult winter.
In practical terms, the per-unit rates work out as follows. Gas customers will pay an average of 5.74 pence per kilowatt hour, with a daily standing charge of 29.09 pence per day. Electricity rates vary by region, but the national average works out broadly in line with recent quarters.
Why Did the Price Cap Fall?
The drop in the price cap reflects a softening of wholesale energy prices compared to the previous quarter. Ofgem reviews the cap every three months based on movements in the wholesale market, and the relative stabilisation of gas prices — despite ongoing geopolitical pressures — has fed through into slightly lower consumer prices.
The government has also applied some additional cost reductions for households, removing an average of around £150 for some customers, with a typical Direct Debit user seeing roughly £134 taken off their annual bill through these measures. However, some of those savings have been offset by new network charges of approximately £65 that are being added to the cap from April — so the actual saving households see is smaller than the headline figure might suggest.
British Gas: What It Means for Their Customers
British Gas, the UK’s largest domestic energy supplier, is applying the new Ofgem rates from 1 April for customers on standard variable tariffs. Those who haven’t locked into a fixed-rate deal will see their bills adjusted automatically — there’s no need to do anything.
For customers who are considering switching, it’s worth comparing fixed-rate deals against the new cap. Some fixed tariffs currently on the market offer rates that are competitive with the cap, and — crucially — they provide certainty against future increases. Given what energy prices have done over the past few years, that certainty has real value.
The Warning for Summer: Prices Could Rise Again
The April reduction may prove short-lived. British Gas has indicated that the price cap is expected to rise by around 9% from 1 July 2026, largely driven by Middle East geopolitical tensions continuing to affect wholesale gas markets. If those predictions prove accurate, the annual bill for a typical household could climb back above £1,780 by autumn.
That prediction isn’t certain — wholesale markets are notoriously volatile — but it’s a strong signal that households who can afford to lock in a fixed rate now might want to explore that option sooner rather than later.
How to Reduce Your Energy Bills
Whether prices go up or down this summer, there are steps any household can take to reduce consumption and lower costs. Simple measures like draught-proofing doors and windows, switching to LED lighting, and reducing water heating temperatures can collectively make a meaningful difference. Smart meters, available free of charge from most suppliers including British Gas, allow you to track your usage in real time and identify where you’re spending most.
For those on low incomes or benefits, the Warm Home Discount and Cold Weather Payments offer additional support. British Gas also has a scheme for customers in difficulty — if you’re struggling to pay your energy bills, contacting them directly is always the first step. Most suppliers are required to offer affordable repayment plans for customers in arrears.
The Bigger Picture
The April 2026 price cap reduction is welcome, but it does little to change the broader reality: UK household energy costs remain significantly higher than they were before the post-pandemic energy crisis began. The cap at its peak reached over £3,500 per year. While things have improved considerably since then, the journey back to pre-crisis normality is far from complete.
For now, the message is cautiously optimistic: bills are falling slightly in April. But prudent households will be monitoring what July brings — and planning accordingly.