Last Updated on October 20, 2026
How much will energy bills go up in January? On the latest forecasts, a typical dual-fuel household will pay between £1,999 and £2,185 a year from 1 January 2027, against £1,723 today. That is £276 to £462 more, or roughly £23 to £39 a month. Ofgem has not set the January figure yet, so every number below is a forecast.
Your own rise depends on how much gas and electricity you use, so we have worked it through for low, typical and high-use homes. Everything is dated 20 October 2026.
Quick answer: Forecasters expect the January 2027 price cap to land between £1,999 and £2,185 a year, up from £1,723 today. That is £276 to £462 more for a typical household, about £23 to £39 a month, with bigger rises for high-use homes. Ofgem confirms the figure by 25 November 2026.
Contents
- 1 How much will energy bills go up in January 2027?
- 2 How much will my bill go up by home size and usage?
- 3 Will gas or electricity bills go up more in January?
- 4 Why is the energy price cap going up in January?
- 5 How much extra will I pay between January and March?
- 6 What can I do before the January cap starts?
- 7 FAQs
- 7.1 How much will energy bills go up in January for a typical household?
- 7.2 How much will energy bills go up in January for a high-use home?
- 7.3 Will my energy bills go up in January if I am on a fixed tariff?
- 7.4 Why do the January price cap forecasts differ?
- 7.5 Will electricity or gas rise more in January?
- 8 Our Verdict
- 9 Sources
Key takeaways
- Today: The cap is £1,723 a year for 1 October to 31 December 2026, according to Ofgem.
- Forecast range: £1,999 (Cornwall Insight, 30 September, +16.0%) to £2,185 (British Gas, 15 October, +26.8%).
- By usage: A low-use home pays £193 to £324 more, a typical home £276 to £462 and a high-use home £388 to £650.
- Gas takes most of it: Cornwall Insight’s split puts about £175 of its £276 rise on gas.
- Next date: Ofgem announces the January to March cap by 25 November 2026.
How much will energy bills go up in January 2027?
Nobody can give you the final number until Ofgem publishes it, but the forecasts now sit in a clear band. Cornwall Insight published the lowest on 30 September: £1,999, a rise of £276 or 16.0% (Global Banking & Finance). The suppliers’ own trackers, updated between 7 and 15 October, are higher.
| Forecaster | Date | January 2027 cap | Rise on £1,723 | Rise (%) |
|---|---|---|---|---|
| Cornwall Insight | 30 Sep 2026 | £1,999 | +£276 | +16.0% |
| OVO | 7 Oct 2026 | £2,074 | +£351 | +20.4% |
| E.ON Next | 12 Oct 2026 | £2,130 | +£407 | +23.6% |
| EDF | 13 Oct 2026 | £2,148 | +£425 | +24.7% |
| British Gas | 15 Oct 2026 | £2,185 | +£462 | +26.8% |
| Average of E.ON Next, EDF and British Gas | 12–15 Oct 2026 | £2,154 | +£431 | +25.0% |
Supplier figures come from MoneySavingExpert’s tracker, British Gas and EnergySwitch.
Cornwall Insight’s number uses wholesale prices up to 28 September, which helps explain why it sits below the newer forecasts. British Gas rates its own forecast as low confidence, so treat the range as a guide.
How much will my bill go up by home size and usage?
Since 1 July 2026, Ofgem’s typical consumption values are 1,600, 2,500 and 3,800 kWh of electricity and 6,000, 9,500 and 14,000 kWh of gas a year for low, medium and high use.
Ofgem does not tie these figures to the number of bedrooms, so the home sizes below are approximate examples.
| Home (rough guide) | Ofgem band | Electricity / gas per year | Bill today | Cornwall (+16.0%) | Supplier average (+25.0%) | British Gas (+26.8%) |
|---|---|---|---|---|---|---|
| Small home, 1–2 beds | Low | 1,600 / 6,000 kWh | £1,208 | £1,401 (+£193) | £1,510 (+£302) | £1,532 (+£324) |
| Typical home, 2–3 beds | Medium | 2,500 / 9,500 kWh | £1,723 | £1,999 (+£276) | £2,154 (+£431) | £2,185 (+£462) |
| Larger home, 4+ beds | High | 3,800 / 14,000 kWh | £2,424 | £2,813 (+£388) | £3,031 (+£606) | £3,074 (+£650) |
We started from Ofgem’s October to December average Direct Debit rates (Ofgem): electricity at 26.32p per kWh plus 54.83p a day, and gas at 7.97p per kWh plus 29.68p a day.
The typical home comes to approximately £1,723, matching Ofgem’s headline figure.
We then applied each forecast’s percentage rise to every bill. This is a simplification because the actual cap changes unit rates and standing charges separately, and your region and payment method will also affect the result.
Will gas or electricity bills go up more in January?
Gas, according to Cornwall Insight’s forecast.
Its £1,999 estimate breaks down into approximately £959 for electricity and £1,040 for gas, according to EnergySwitch.
A typical household currently spends approximately £858 on electricity and £865 on gas at Ofgem’s average rates.
| Fuel | Typical home today | Cornwall January forecast | Rise |
|---|---|---|---|
| Electricity | £858 | £959 | +£101 (+11.8%) |
| Gas | £865 | £1,040 | +£175 (+20.2%) |
| Total | £1,723 | £1,999 | +£276 (+16.0%) |
Gas-heated homes carry most of the forecast increase, so the steps in our guide to how to reduce your gas bill could be particularly valuable this winter.
Homes with heat pumps use more electricity, and our guide to heat pump running costs explains how their energy use compares.
VAT on domestic electricity is zero until 31 March 2027, so the reduction still applies during the January quarter.
Ofgem says the VAT reduction took approximately £45 off the October cap.
Why is the energy price cap going up in January?
Wholesale gas prices are the main reason.
Ofgem’s published figures show that the wholesale allowance rose 11% for October and now accounts for 47% of the price cap, with the conflict in the Middle East identified as a major driver.
Cornwall Insight says September’s price rises are already reflected in the calculation, which is why it considers a January increase highly likely.
The exact size of the rise is still uncertain.
Ofgem calculates the cap using wholesale prices observed up to mid-November. A fall in gas prices could reduce the final figure, while further increases could push it higher.
Our guide to the January 2027 energy price cap tracks the forecasts in more detail.
How much extra will I pay between January and March?
The new cap runs from 1 January to 31 March 2027.
A quarter of the forecast annual increase for a typical household is approximately £69 under Cornwall Insight’s forecast and £116 under British Gas’s forecast.
However, winter energy consumption is generally higher than the annual average.
If you use more heating during January, February and March, your actual additional spending could be greater than a simple quarter of the annual increase.
The price cap does not limit your total bill. It limits the unit rates and standing charges suppliers can charge customers on applicable default tariffs.
What can I do before the January cap starts?
Check your energy tariff
A fixed tariff keeps its agreed rates until the contract ends, even when the price cap changes.
Our guide to whether you should fix or wait before the January price cap compares the options and potential savings.
Reduce your energy consumption
Reducing the amount of energy you use can help offset higher unit prices.
Our guides to saving on your electricity bill and heating your home cheaply cover practical ways to reduce consumption.
Consider solar panels
Generating electricity with solar panels reduces the amount you need to buy from the grid.
As electricity unit prices rise, the value of the solar electricity you use directly also increases.
For example, every 1p increase in the electricity unit rate adds approximately £14 a year to the value of 1,400 kWh of self-consumed solar generation.
Our guide to solar panels vs the energy price cap explores how changing electricity prices affect potential savings.
FAQs
How much will energy bills go up in January for a typical household?
Forecasts range from £1,999 (Cornwall Insight, 30 September) to £2,185 (British Gas, 15 October), compared with £1,723 currently.
That represents an increase of £276 to £462 a year, or approximately 16.0% to 26.8%, for a typical dual-fuel household paying by Direct Debit.
Ofgem will announce the confirmed cap by 25 November 2026.
How much will energy bills go up in January for a high-use home?
A high-use home consuming 3,800 kWh of electricity and 14,000 kWh of gas annually pays approximately £2,424 a year at current rates.
Applying the forecast increases gives an additional £388 under Cornwall Insight’s forecast or £650 under British Gas’s forecast.
That is approximately £32 to £54 more per month when averaged across a year.
Will my energy bills go up in January if I am on a fixed tariff?
Not because of the price cap while your fixed rates remain in force.
Fixed tariffs retain their agreed unit rates and standing charges until the contract ends, although your bill still depends on how much energy you use.
When your fix ends, you can choose another deal or move onto your supplier’s default tariff.
Why do the January price cap forecasts differ?
The forecasts use wholesale energy prices from different dates.
Cornwall Insight’s £1,999 estimate uses prices up to 28 September, while the supplier forecasts updated between 7 and 15 October reflect later market movements.
British Gas describes its own forecast as low confidence, so the overall range is more useful than any single estimate.
Will electricity or gas rise more in January?
Gas, according to Cornwall Insight’s forecast.
Its £1,999 estimate breaks down into approximately £959 for electricity and £1,040 for gas.
Compared with current figures of around £858 and £865, that represents approximately £101 more for electricity and £175 more for gas.
Gas-heated households could therefore experience a larger share of the increase.
Our Verdict
Based on the forecasts available on 20 October 2026, it is sensible to budget for an energy price cap increase of approximately 25% in January 2027.
The more recent supplier forecasts suggest a typical annual bill of around £2,150, approximately £430 higher than the current £1,723 cap.
However, the actual figure remains uncertain until Ofgem confirms it by 25 November.
If your home uses gas for heating, reducing gas consumption should be a priority because it accounts for most of the forecast increase.
If solar panels are something you are considering, generating electricity at home can reduce the amount you need to buy from the grid and help protect against future electricity price increases.
You can explore your options with a free Eco Happy solar quote and see what a suitable system could generate at your property.
Sources
- Ofgem – October to December 2026 Price Cap Changes
- Ofgem – Price Cap Unit Rates and Standing Charges
- Ofgem – Review of Typical Domestic Consumption Values
- Ofgem – October 2026 Energy Price Cap Announcement
- Cornwall Insight Forecast – Global Banking & Finance
- EnergySwitch – January 2027 Price Cap Forecast
- MoneySavingExpert – Energy Price Cap Predictions
- British Gas – Energy Price Cap
