How does Rest Less make money
We make money through advertising and commission from affiliate links, which enable us to offer Rest Less as a free service to our users. The content on this page may use affiliate links, which track traffic from our website to a third party provider and enable us to receive a commission or payment from any traffic we refer.
* Affiliate links on this page have an * next to them. We place enormous importance on our editorial independence and the integrity of our content which means that we will never change how we write about something as a result of an affiliate link.
Energy bills are set to increase by 13% a year from July for a household using a typical amount of gas and electricity, when the energy price cap goes up.
This will see the average annual bill increase from £1,641 a year to £1,862, which will come as a bitter a blow to many households who are already struggling to make ends meet. Read more about this in our article Energy price cap to jump to £1,862.
It’s worth noting that Ofgem’s price cap only limits the amount you can be charged for each unit of gas and electricity you use, not how much your bills will be overall. Your bill is linked to the amount of energy you use, so if you live in a large property, for example, your costs may well exceed the price cap, and if you live in a smaller property, you may end up paying less than the price cap.
Here we answer your questions about your options when it comes to energy tariffs. We’ll regularly update this as the news around energy costs changes.
More competitive tariffs available
The good news is that recent months have seen providers starting to launch more competitive price energy deals. This means that if you’re currently on your provider’s default or standard tariff, you’ll almost certainly be able to save money by moving to a fixed tariff.
If you’re considering switching your energy provider, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison websites such as MoneySuperMarket, Uswitch and Compare the Market enable you to compare the latest energy tariffs, whether you’re looking for a fixed or variable deal.
Sarah Pennells, Consumer Finance Specialist at Royal London said: “The typical increase based on average household usage and rates is £221 a year, or £18 a month, compared to the previous cap, which stood at £1,641.
“Although this is still lower than the levels seen in early 2023, it is higher than the cap from this time last year (£1,720) and remains well above the pre-crisis average which was around £1,200. This means energy costs remain a significant worry for families across the country, despite some easing from the extreme highs of the past few years.
“Our latest research shows that one in eight people have less than £50 left at the end of the month once they’ve paid their rent or mortgage, household bills, council tax and food. Finding this extra amount will be a struggle for many and perhaps impossible for some.
“This new cap price will also be disappointing for bill payers who are coming off a lower fixed rate tariff. However, there may be steps you can take to help manage your bills and reduce your energy usage. If you’re thinking of switching it’s worth checking price comparison sites regularly as deals are changing regularly. If you can’t save money by switching, then using energy as efficiently as possible and considering switching to direct debit if you pay your bill when it arrives could save you money.”
Which tariff are you on?
If you’re considering moving to a different energy tariff, your first step should be to establish which tariff you’re currently on. As mentioned, you’ll usually be on a variable tariff, the cost of which is determined by the price cap, if your fixed energy tariff has ended and you haven’t switched to another deal.
You’re also likely to be on a variable tariff if you’ve never switched your energy tariff, or if you were with a supplier that’s gone bust and you’ve been moved to another provider. The majority of UK households are currently on the energy price cap guarantee.
The cap gives an estimate of the maximum amount per year that an average household using a ‘typical’ amount of energy will pay. However, it’s by no means a limit, as if you live in a large property or use a lot of energy, you’ll pay more than this. Read more in our article What is the energy price cap?
What if you’re locked into a fix?
If you’ve locked into a fixed rate energy tariff at a higher rate than the energy price cap due to energy price rises, it’s worth seeing whether there are any exit fees to leave your current deal. If there aren’t, they are relatively low, or it’s due to finish soon anyway, you may find you’re better off moving onto your provider’s default tariff unless cheaper tariffs become available.
If you’re on a fix that costs less than the energy price cap, you’ll continue on this until your fixed term ends. When your fix ends, see if it’s possible to switch your tariff again to another deal that’s lower than the cap.
Should I move to a fixed or discounted deal?
As mentioned, there are some competitive fixed and discounted deals available from some energy suppliers, and more deals are likely to be launched in the next few days and weeks. If you find a fixed tariff that is cheaper than the current price cap, you should be able to save money now, but will be able to reduce bills significantly when the cap rises in July..
It’s worth contacting your current energy supplier to ask if there are any deals they are offering that might be worth considering. Here are a few deals that are currently available but bear in mind that these change frequently:
One of the tariffs that’s likely to be worth considering is Ecotricity’s 1 Year May 26 v2 12-month fixed, which is a dual fuel deal available to new and existing customers. This deal has £75 per fuel exit fees.
Other competitive options include Fuse Energy’s May 2026 Fixed (18m) v4 18 month fix and Outfox Energy Fix’d Dual May 26 12M v20 12 month fix. These deals have £100 and £75 exit fees per fuel, respectively.
Figures were correct at the time of writing (02/06/2026)
What can you do if you’re struggling to pay your energy bills?
It’s an extremely tough time for households battling rising costs across the board, from energy to food and other general utilities. As a first step, it’s worth contacting your energy provider if you’re struggling and slipping into the red. They may be able to help with a payment plan, or make other suggestions. Read more in our article What can you do if you can’t pay your energy bills?
If you were born before 22 September 1959 and your taxable income is lower than £35,000, you should be entitled to the Winter Fuel Payment to help with heating costs this coming winter. This is a tax-free amount of between £100 and £300, and the amount you receive depends on your age and anyone else in your household.
If you’re on a low income or claiming the Guarantee Credit element of Pension Credit, you may also qualify for the Warm Homes Discount Scheme, which is a one-off £150 discount on your electricity bill paid to your supplier between October and March. Find out more in our guide Are you eligible for help with heating costs?
If your home is poorly insulated, you may be able to make improvements through installing insulation and by draft-proofing windows and doors. You can find tips on how to reduce your energy bills in our article Energy saving tips: how to reduce your bills.
It’s also well worth checking whether you might be able to reduce some of your other outgoings, so you can free up a bit of extra cash to help you cover rising energy costs. Our article Seven ways to save on your household bills explains how you may be able to make savings.
Rest Less Money is on Instagram. Check out our account and give us a follow @rest_less_uk_money for all the latest Money News, updated daily.
Join the discussion
Read our full commenting terms and guidelines