Heating this winter: the price cap and what support really exists

The price cap until 31 December

According to Ofgem’s press release of 26 August 2026, from 1 October to 31 December the typical annual bill for gas and electricity, paying by direct debit, is £1,723. From July to September it was £1,663, so the bill is now £60 a year higher. According to Ofgem, this is a 4% increase.

According to Ofgem’s price cap page, the following average rates apply in this period:

• Electricity: 26.32p per kWh, standing charge 54.83p a day.
• Gas: 7.97p per kWh, standing charge 29.68p a day (including 5% VAT).

Ofgem states that these are average rates in England, Scotland and Wales, paying by direct debit.

Ofgem states that no VAT is charged on electricity from 1 October 2026 to 31 March 2027. The Department for Energy Security and Net Zero (DESNZ) press release of 28 October says that in the Budget the VAT exemption on electricity was extended to July 2027.

According to Ofgem, the cap is updated every three months. When Ofgem announces the cap that will apply from 1 January 2027, “Londono Žinios” will report on it.

What support really exists

1. Winter Fuel Payment (for people of pension age). According to GOV.UK, the payment is between £100 and £300. It is for people born on or before 27 June 1960 who lived in England, Wales or Northern Ireland during the qualifying week (21 to 27 September 2026). The highest amount of £300 is paid to those born before 28 September 1946 if they live alone (or with no one who is entitled to this payment) or receive a certain benefit. For couples who receive the payment on a joint claim, £300 is paid if at least one partner was born before that date. There are also payments of £150 and £200. A letter is sent in October or November, and most payments are made in November or December. If your income is over £35,000, HMRC will take the payment back through your tax code or Self Assessment; a partner’s income is not counted. This payment is not made in Scotland, where the Pension Age Winter Heating Payment applies.

2. Warm Home Discount (£150). According to GOV.UK, this is a one-off £150 discount on your electricity bill, not cash. In England and Wales you are eligible if on 23 August 2026 you or your partner received Universal Credit, Housing Benefit, income-related ESA or Pension Credit. Letters are sent from the end of October to the beginning of January. In some cases you need to call the helpline by 26 February 2027. The discount is applied by 31 March 2027.

3. New Household Energy Payment (£100, England only). According to the DESNZ press release of 28 October, from January 2027 £100 will go to households in England that pay council tax on a main home in bands A to D. Those who pay council tax by direct debit do not need to do anything: the money will be paid into their bank account. Others will be invited by their council to apply. A further £100 million has been allocated to councils so that they can help other households. Scotland, Wales and Northern Ireland will receive funding and will decide themselves how to distribute it. The full criteria will be published later.

There is no general £300 payment

The DESNZ press release on the Budget does not mention a sum of £300. The only payment of that size is the highest Winter Fuel Payment for pensioners born before 28 September 1946. The Winter Fuel Payment is only for people born on or before 27 June 1960, so families of working age are not entitled to it (our explanation).

What to do now

• Check which council tax band your home is in.
• If you receive Universal Credit or another of the benefits mentioned, do not miss the letter about the Warm Home Discount.
• DESNZ warns that only your council should contact you about the £100 payment.

Based on: the Ofgem press release “Energy price cap will rise by 4% from October 2026” (26 August 2026); the Ofgem page “Energy price cap unit rates and standing charges” (accessed 4 November 2026); the DESNZ press release “What the Autumn Budget 2026 means for your energy bills” (28 October 2026); the GOV.UK pages on the Winter Fuel Payment and the Warm Home Discount (updated 30 October 2026).

Republication must credit Londonozinios.com as the source.