UK households have 29 days to ‘save £221’ | Personal Finance | Finance
Millions of households have just 29 days left to dodge a £221 jump in their annual energy bills as experts warn the latest price cap increase will hit from July 1.
Energy comparison site Uswitch says households on standard variable tariffs face an average increase of £221 a year when regulator Ofgem raises the energy price cap by 13% next month. The increase means a typical household’s annual energy bill will rise from around £1,641 to £1,862, while larger families with higher energy use could see costs jump by as much as £329 a year.
The warning comes as households continue to grapple with the cost of living, with research suggesting two-thirds of consumers say a 10% increase in energy costs would affect their finances. Some said they would be forced to dip into savings, while others would have to cut back on essentials such as food and transport.
Yet switching experts say many households can still avoid the increase. According to Uswitch, there are 23 fixed-rate energy tariffs available that are cheaper than the new July price cap, with the best deal offering savings of up to £255 a year compared with remaining on a standard tariff.
The cheapest tariff identified by the comparison website comes from Outfox Energy, with an estimated annual bill of £1,594 for a typical dual-fuel customer. That is £255 less than the average bill under the July price cap.
Other competitive deals are available from Fuse Energy, E.ON Next and British Gas. Industry forecasts suggest bills could rise again in October, adding urgency for households considering locking into a fixed-rate deal before winter.
Ben Gallizzi, energy expert at Uswitch, said: “For the millions of households on standard tariffs, this is your 30-day warning that your energy rates are rising on 1 July – unless you act now.
“The price cap is going up, but your bills don’t have to. There are 23 fixed deals available that are cheaper than the price cap, with savings on offer of up to £255. These deals might not be around for long, so take a few minutes to check online to see what deals are available to you.”
How to check if you’re affected
Customers whose fixed energy deal has expired are often automatically moved onto their supplier’s standard variable tariff, where prices rise and fall in line with the Ofgem cap. Anyone who has not switched supplier or tariff for more than a year is likely to be on one of these default deals.
Common standard tariff names include Flexible Octopus from Octopus Energy, Next Flex from E.ON Next and Simpler Energy from OVO Energy.
Consumers can check the name of their tariff on their latest energy bill or by logging into their online account.
