September Savings
September 2, 2026
Despite government promises to look after hard-working families and keep energy bills down, our gas and electricity bills will rise again from 1 October. We’ll feel this as a double whammy, just as we’re heading into the colder months.
How Much More Will Energy Cost?
Ofgem’s energy price cap will rise by 4% for the period from 1 October to 31 December 2026. For a ‘typical’ household, paying by Direct Debit for gas and electricity, the cap will increase from £1,663 to £1,723 a year. Obviously, ‘typical’ is subjective – but the upshot is, we’ll all be paying more. On average, around £60 more a year, or £5 a month, (your actual bill will depend on how much energy you use).
This increase hits us at an already difficult time. Recent figures from StepChange show that household energy debt and arrears of more than 91 days are now upwards of £5 billion. That’s an increase of 13% in a year.
How Can We Afford Our energy Bills?
What should you do if you’re already struggling to pay your energy bills? The first, and most important thing to remember is don’t ignore the problem. We’ve all been tempted to put an energy bill to one side when there are so many other bills, all demanding your attention. However, energy arrears are classed as a priority debt. That’s because your energy supply could end up being disconnected if you don’t make arrangements to repay what you owe.
If you’re struggling, make sure you contact your energy supplier as soon as possible. Citizens Advice says suppliers are obliged to work with their customers to find a solution to energy arrears. You should try to negotiate a realistic repayment arrangement – one that is affordable for you. Don’t wait until you’re several months behind before asking for help.
What Can You Realistically Afford?
This is key. Before agreeing to a repayment plan, look at your whole household budget and work out achievable repayment amounts. If you’re not sure where to start, don’t panic. Work out your essential income and expenditure, including:
- Rent or mortgage
- Council Tax
- Food and household essentials
- Energy
- Travel and transport
- Insurance
- Childcare
- Minimum payments on other debts
Even then, remember that what’s left isn’t necessarily all available to put towards your energy arrears. You need enough money for reasonable day-to-day living costs too. If you’re already struggling to make ends meet, don’t agree to a repayment amount simply because that’s what your supplier initially suggests. You can ask for an affordable arrangement, based on your circumstances.
Is Support Available?
Check whether you’re entitled to help – there may be support available that you haven’t claimed, or don’t even know about. The Warm Home Discount Scheme reopens in October 2026 and provides a £150 discount on electricity bills for eligible households in England and Wales. Certain households receiving qualifying means-tested benefits, including Universal Credit, Housing Benefit, income-related ESA and Pension Credit could be eligible. Most eligible households should receive the discount automatically, but some people may need to provide additional information.
It’s also worth checking if you could qualify for other support with energy costs or even energy efficiency improvements. GOV.UK has information about schemes available to people on benefits or low incomes.
What About Prepayment Meters?
If you have a prepayment meter and you’re struggling to afford top ups, don’t simply allow the credit to run out. Contact your supplier urgently and explain your situation. There may be options available to help you manage your energy debt and keep your supply running.
Lots of us have other debts as well as energy arrears, so it’s really important to look at the whole picture. For example, paying off a credit card or catalogue debt while allowing your energy debt to build up isn’t the right priority.
What About Other Debts?
Energy bills aren’t the only financial pressure many households are facing; far from it. If you’re using credit cards, overdrafts or loans to cover your energy bills or other essential household costs, this is a sign that your overall budget isn’t sustainable.
You shouldn’t have to choose between paying your electricity bill and making a credit card payment. Energy arrears are a priority debt, whereas most credit cards, store cards and unsecured personal loans are considered ‘non-priority’ debts. Now, that doesn’t mean you can simply stop paying. What it does mean is that your priorities may need to be reassessed if you can’t afford everything. Contact us – we can advise you and point you in the right direction to get help.
Never be Embarrassed to Ask for Debt Help
Everyone’s finding life more expensive these days. Struggling with energy bills doesn’t mean you’ve been irresponsible with money. Energy costs are a huge pressure for households, and these latest figures show just how widespread energy arrears have become. Another StepChange survey found that nearly a third of UK adults are worried about their energy bills.
The important thing is to act before the situation becomes more difficult. Don’t ignore letters and don’t borrow more money simply to keep up with bills. Don’t wait until you’re at crisis point before asking for advice. Getting a clear picture of how much you owe, what you can afford, and what support is available can help you get back in control.
Need help with your debts? If energy arrears are just one part of a wider debt problem, professional debt advice can help you understand your options. The sooner you get in touch, the more options you may have – and the sooner you’ll get back on track.
