Energy bills may be going up again from July, adding more pressure to household budgets at a time when many people are already feeling stretched.
According to analysis from Cornwall Insight, a typical gas and electricity bill is forecast to rise to the equivalent of £1,850 a year from July under Ofgem’s quarterly energy price cap. That would be around £209 more per year than the current April to June cap of £1,641.
The exact amount you pay will still depend on how much energy you use, how you pay, where you live and the tariff you are on. The price cap is not a maximum total bill. It limits the unit rates and standing charges suppliers can charge for standard variable tariffs. So, if you use more energy, you will still pay more.
For many households, the message is simple: it may be worth checking your options before the next price change takes effect.
Should you look at a fixed energy deal?
If you are currently on a standard variable tariff, you may want to compare fixed energy deals.
A fixed tariff can give you more certainty because the price you pay per unit of energy is fixed for a set period. This does not mean your bill will be the same every month, as you still pay for what you use, but it can protect you from future unit price rises during the fixed term.
- Check the unit rates for gas and electricity.
- Look carefully at the daily standing charges.
- Check how long the fix lasts.
- Look for any exit fees.
- Compare the deal against the forecast price cap.
A fixed deal is not automatically the right answer for everyone. It depends on the tariff available, your household usage and whether you value certainty over flexibility. Very exciting admin, granted. But sometimes boring admin saves real money.
Could a dynamic tariff help?
Some households may also benefit from a dynamic or time-of-use tariff. These tariffs charge different rates at different times of day.
When it may help
A dynamic tariff can work well if you can shift some electricity use into cheaper periods, such as charging an electric vehicle, using a home battery, or running appliances overnight.
When to be cautious
If most of your electricity use happens at peak times, or if you cannot easily shift your usage, a standard or fixed tariff may be simpler and safer.
Small steps can still help
Even small changes can make a difference, especially when prices rise. You could:
- Check whether your direct debit still matches your actual usage.
- Submit regular meter readings if you do not have a smart meter.
- Use comparison sites to review your tariff options.
- Contact your energy supplier if you are behind or worried about falling behind.
- Check whether you are eligible for any support, discounts or grants.
It is also worth being cautious about borrowing to cover everyday bills. Short-term borrowing can sometimes help in an emergency, but it is important to think carefully about whether repayments will be affordable.
Worried about loan repayments?
If you already have a loan with Clockwise and you are worried about making your repayments, please speak to us as soon as possible.
We understand that rising household costs can make budgeting difficult. Getting in touch early gives us more chance to understand your situation and talk through your options.
If you owe money to other lenders or creditors, it is also worth contacting them before things become unmanageable. Many organisations would rather hear from you early than after a missed payment.
Contact ClockwiseKeeping your budget under review
Energy prices have been difficult to predict in recent years, and household budgets have had to absorb a lot. The best thing you can do now is review your energy tariff, check your usage and make sure any financial commitments still feel manageable.
A few minutes spent checking your options today could make the next few months a little easier.
