Energy Update
Prime Minister Andy Burnham has announced plans to cut the 5% VAT on electricity bills as part of his pledge to help with the cost of living. This will come into effect on 01 October 2026 and any savings will depend on your usage. It’s estimated the ‘price caps’ set by Ofgem, the industry regulator, will be reduced by £45 to reflect average household savings.
The dates of Ofgem’s capped price changes are: 01 January; 01 April; 01 July and 01 October. It’s important to check your energy usage and provide meter readings regularly, especially around the time of price changes to avoid any incorrect or unexpected charges. These readings will ensure your bills are being calculated using accurate readings.
For residents on a variable tariff, the amount you pay for your energy is determined by the ‘price caps’ set by Ofgem. There was a 12% increase on this cap on 01 July 2026 and it’s expected to rise again at the next price change on 01 October 2026.
As prices are set to rise, you may wish to explore switching to a fixed-rate energy tariff which protects you from price rises and your energy price will stay the same throughout your contract. For help with this, Ofgem have a complete list of price comparison websites you can use Ofgem – Find and Compare Energy Tariffs.
Our Energy Advice service can also provide advice on switching tariffs, help to understand your options and support to make meter readings. For further advice, please contact Alex, our Energy Advisor, by emailing EnergyAdvice@raid.charity or calling: 0203 393 7011.
