Households could save up to £173 a year by switching to fixed energy deal
News Source
•Sat, 29 Aug 2026 06:00:21 GMT
📰 What Happened
British households could save up to £173 a year by switching from a standard energy tariff to a fixed deal. Gas and electricity prices will rise by 4% from October 1 under the government's price cap. That follows a 13% rise at the start of July, and another increase is expected in January.
The October rise pushes the average default tariff to about £1,723 a year for 22 million households. Ofgem, the energy regulator, says fixed deals are £100 or more below the October cap, and they lock in set prices for one or two years.
🔍 The Backstory
The UK price cap is a government limit on what energy suppliers can charge per unit of gas and electricity. It was introduced to protect customers when energy prices spiked. When the cap rises, most households on default tariffs automatically pay more.
Energy prices in Europe jumped after 2022, when Russia cut gas supplies, and they have stayed unstable since. Fixed tariffs protect customers from future rises, but they carry a risk: if prices fall, you stay locked into the higher rate.
🎯 Why It Matters
Energy bills hit every household, and rises of this size hurt family budgets. Locking in a fixed deal can save £100 or more a year with little effort, which for many families is a week of groceries.
British households could save up to £173 a year by switching from a standard energy tariff to a fixed deal. Gas and electricity prices will rise by 4% from October 1 under the government's price cap. That follows a 13% rise at the start of July, and another increase is expected in January.
The October rise pushes the average default tariff to about £1,723 a year for 22 million households. Ofgem, the energy regulator, says fixed deals are £100 or more below the October cap, and they lock in set prices for one or two years.
The UK price cap is a government limit on what energy suppliers can charge per unit of gas and electricity. It was introduced to protect customers when energy prices spiked. When the cap rises, most households on default tariffs automatically pay more.
Energy prices in Europe jumped after 2022, when Russia cut gas supplies, and they have stayed unstable since. Fixed tariffs protect customers from future rises, but they carry a risk: if prices fall, you stay locked into the higher rate.
Energy bills hit every household, and rises of this size hurt family budgets. Locking in a fixed deal can save £100 or more a year with little effort, which for many families is a week of groceries.