Ofgem has confirmed that the energy price cap will rise by 0.2% during the January and March 2026 period, meaning the cost for an average dual-fuel household will jump to £1,758 per year
UK households are bracing for a rise in bills come the New Year, following an announcement from industry regulator Ofgem. However, many vulnerable people could mitigate the financial blow by checking their eligibility for a range of schemes and benefit payments designed to help cover their bills.
Ofgem has confirmed that the energy price cap will see a 0.2% rise during the January to March 2026 period. This means that the cost for an average dual-fuel household will leap to £1,758 per year.
It’s important to note that some households may pay more or less than this, depending on their energy usage. Despite ‘stabilising’ wholesale energy costs, Ofgem warns that many billpayers could still face increases due to ‘volatile’ prices. If you’re worried about the cost of keeping your heating on during the winter months, you could seek support from both your energy supplier and the Department for Work and Pensions (DWP).
Tim Jarvis, Director General, Markets, at Ofgem, commented to say: “While energy prices have fallen in real terms over the past two years, we know people may not be feeling it in their pockets.
“The price cap helps protect households from overpaying for energy. But it’s only a safety net and there are practical ways that customers can pay less for their energy. Look at different tariffs and choose what’s right for you or change the way you pay to Direct Debit or smart pay-as-you-go. Prepayment remains the cheapest way to pay, and these customers are already saving around £47 on average.
“While wholesale energy costs are stabilising, they still make up the largest portion of our bills which leaves us open to volatile prices. That’s why we’re working with government and industry to boost clean energy and reduce our reliance on international sources we can’t control.”
Read below for a full breakdown on the support you can claim….
Winter Fuel Payment
Figures from the DWP reveal that around nine million people will receive between £100 and £300 from Winter Fuel Payments. You can receive a Winter Fuel Payment if you were born before September 22, 1959 and live in England or Wales.
Most people will automatically receive the Winter Fuel Payment if they qualify, but anyone who does not receive it but believes they should can check whether they can submit a claim. The deadline to apply for winter 2025 to 2026 is March 31, 2026.
Warm Home Discount
The Warm Home Discount Scheme is expected to benefit around six million households this winter. This DWP payment offers a £150 credit on electricity bills for those receiving certain benefits.
However, these payments aren’t automatic and must be applied for through participating energy suppliers rather than the DWP directly. This is because the DWP transfers the fund straight to the energy supplier.
Government guidance emphasises that you can qualify for the Warm Home Discount this year if you’re on a low income, claiming a means-tested benefit, and either you or your partner’s name is on the electricity bill.
- Income-based Jobseeker’s Allowance (JSA)
- Housing Benefit
- Income-related Employment and Support Allowance (ESA)
- Universal Credit
- The ‘Savings Credit’ part of Pension Credit
- Income Support
You will be eligible if all this applied on August 24, 2025. A letter confirming your eligibility for the scheme will be sent between October 2025 and January 2026.
Over 20 energy suppliers, including Octopus Energy, British Gas, and Ovo Energy, support the scheme. A complete list of participating suppliers can be found online.
Energy firm schemes and grants
Various energy firms offer some form of assistance for customers facing difficulties. However, the level and type of support depend entirely on the specific energy firm and your unique situation.
Some providers may offer a discount on energy bills while others can provide support to alleviate any existing energy debt. If you’re struggling, it’s crucial to contact your energy supplier as soon as possible and inform them.
You should also enquire about any grants or schemes they might have that could help. Some examples of the schemes and grants available include:
- The Individual and Families Fund (British Gas Trust)
- British Gas Energy Support Fund
- Octo Assist (Octopus Energy)
- EDF Customer Support Fund
- E.ON Energy Bills Support Scheme
Free boiler replacement
Some energy firms may replace your current boiler with a more efficient one free of charge in certain circumstances. The Energy Company Obligation government scheme, which is aimed a tackling fuel poverty, obliges companies to promote measure that improve energy efficiency in low-income households.
Part of this scheme can include installing insulation and upgrading heating systems, including replacing old inefficient boilers. In order to be eligible for the scheme, you must be considered to be in “fuel poverty” or be claiming on the following benefits:
- Housing benefit
- Income-related Employment and Support Allowance (ESA)
- Pension Guarantee Credit
- Income Support
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Child Benefit
- Pension Credit Savings Credit
- Tax Credits (Child Tax Credits and Working Tax Credits)
However, local authorities also have the ability to render residents to obligated energy suppliers so that support can be provided. Ofgem highlights that eligibility for the scheme doesn’t mean that an energy supplier will automatically decide to replace energy efficient measures into your home.
A full list of suppliers obligated under the ECO, as well as their contact details, can be found here.
Cold Weather Payment
The DWP will provide £25 to eligible people for each seven-day period where temperatures consecutively dropped below zero degrees Celsius. To be eligible, you must be receiving certain benefits, including:
- Income Support (if you get disability or pensioner premium, or you live with a child who is disabled, or you have a child under five living with you)
- Universal Credit (if you’re not employed or “gainfully” self-employed, your partner is not employed or “gainfully” self-employed – you or your must also have a health condition or disability and have limited capability for work, or have a child under five living with you)
- Income-related Employment and Support Allowance (if you get severe or enhanced disability premium, or a pensioner premium, or you live with a child who is disabled, or you have a child under five living with you)
- Support for Mortgage Interest (if you have any of the following: severe or enhanced disability premium, a pensioner premium, a child who is disabled,or a child under five living with you)
- Income-based Jobseeker’s Allowance (if you get disability or pensioner premium, or you live with a child who is disabled, or you have a child under five living with you)
- Pension Credit
More details can be found here.