At a glance
What changed on 1 October 2026?
Ofgem’s new energy price-cap period runs from 1 October to 31 December 2026. For a household in England, Scotland or Wales paying by Direct Debit on a standard variable tariff, the average gas unit rate is now 7.97p per kWh and the average gas standing charge is 29.68p per day. Both figures include 5% VAT.
The previous July–September averages were 7.33p per kWh and 29.04p per day. The unit rate therefore rose by 0.64p per kWh, while the daily standing charge rose by 0.64p. Ofgem says the headline dual-fuel cap increased by 4% to £1,723 a year for a typical household, but most of that increase is driven by gas costs.
That £1,723 figure is not a maximum bill. It is an illustration based on typical gas and electricity use. Your actual bill still depends on the amount of energy you use, your region, payment method and tariff.
What the new rates mean for a gas bill
To make the change tangible, the table applies each quarter’s average Direct Debit gas rates to three annual usage levels. These are annualised illustrations: they show what the rates would cost if they stayed in place for a full 365 days. In reality, the cap changes every three months and most homes use much more gas in winter.
The calculation is: annual kWh × unit rate, plus 365 × daily standing charge. The published rates already include VAT, so VAT must not be added again.
| Annual gas use | Jul–Sep rates | Oct–Dec rates | Difference |
|---|---|---|---|
| 6,500 kWh | £582.45 | £626.38 | +£43.94 |
| 10,000 kWh | £839.00 | £905.33 | +£66.34 |
| 14,400 kWh | £1,161.52 | £1,256.01 | +£94.50 |
Rounded to the nearest penny. These are gas-only illustrations, not Ofgem’s dual-fuel typical bill figure.
Worked example for an autumn bill
Suppose a bill covers all 92 days from 1 October to 31 December and shows 2,500 kWh of gas use. At the average capped Direct Debit rates, the usage charge is 2,500 × £0.0797 = £199.25. The standing charge is 92 × £0.2968 = £27.31. The illustrative total is therefore £226.56.
Use the rates printed on your own statement rather than automatically substituting these averages. Regional cap rates differ, and standard credit and prepayment customers have separate figures. Our gas bill calculator lets you enter your own meter readings, dates, unit rate and standing charge.
Does the price cap apply to your tariff?
The cap protects households on default or standard variable tariffs in England, Scotland and Wales. It limits the unit rate and standing charge a supplier can apply, with different cap figures for region and payment method.
A fixed tariff is not reset to the new capped rates simply because the cap changed. Check the end date and prices in your tariff agreement before comparing it with the cap. The Great Britain cap also does not apply in Northern Ireland, where the Utility Regulator reviews regulated gas tariffs separately.
- Check your tariff name: your bill or online account should say whether it is fixed or variable.
- Check both rates: compare the pence-per-kWh figure and the daily standing charge.
- Check the payment method: Direct Debit, standard credit and prepayment rates are not identical.
- Check your region: the national figures in this article are averages, not a quote for every postcode.
Five useful checks to make now
A price change is a good point to make sure your next bill starts from accurate information. These checks do not require you to change supplier or tariff.
- Send a meter reading. A reading close to 1 October helps your supplier split usage between the old and new rates instead of estimating it.
- Photograph or record the reading. Keep the date and all digits you submitted in case the next bill looks wrong.
- Review your Direct Debit. Ask how a proposed change was calculated; a monthly payment is a budgeting amount, not the cost of that month’s usage.
- Compare a fix carefully. Look at both fuels, both standing charges, exit fees and the fixed term—not only a headline annual estimate.
- Track actual gas use. Compare kWh over similar periods, because raw metric or imperial meter units are not directly comparable with tariff prices.
If the higher rate makes your bill difficult to pay
Contact your supplier as soon as you think you may struggle. Ofgem’s rules require suppliers to work with customers on an affordable payment plan. Depending on your circumstances, you can ask for a payment review, more time to pay, a temporary reduction or information about hardship funds.
Do not avoid heating your home to an unsafe level because of a headline estimate. Use the Ofgem help guide to find current supplier, government and independent support. For a clearer breakdown first, see what makes up a gas bill and our step-by-step calculation guide.
Gas price cap FAQs
Does the October 2026 price cap mean my total gas bill cannot exceed a set amount?
No. The cap limits unit rates and standing charges on protected tariffs, not the total you can pay. A household that uses more gas will still have a higher bill.
Do the 7.97p unit rate and 29.68p standing charge include VAT?
Yes. Ofgem states that the average gas figures for 1 October to 31 December 2026 include gas VAT at 5%. Do not add VAT again when using them in a calculation.
Will a fixed gas tariff change on 1 October 2026?
The price-cap change does not reset an agreed fixed rate. Check your tariff terms and end date. Other tax or policy changes can sometimes affect fixed bills, so use the figures shown by your supplier.
Does this gas price cap apply in Northern Ireland?
No. Ofgem’s household price cap covers England, Scotland and Wales. Northern Ireland has a separate energy market and regulated gas tariff reviews by the Utility Regulator.
When is the next price-cap announcement?
Ofgem says it plans to announce the cap for 1 January to 31 March 2027 by 25 November 2026. The regulator may publish earlier if external circumstances require it.
Sources
Rates and rules checked on 1 October 2026. Time-sensitive figures should be checked again before use.