Money Matters: What could happen next to energy prices?

In this week’s Money Matters column, Housing Plus Group’s debt and energy manager Dan Bebbington talks us through the energy price cap and predictions about where prices could go later this year into early next.

If you’ve been keeping up-to-date on the news about energy bills, you will have seen that the price cap is rising 13% from July 1 to £1,862, from £1,641.

The increase in July is largely due to the ongoing conflict in the Middle East, on top of wholesale costs remaining high and network costs predicted to rise over the next five years.

As it stands, analysts are currently predicting that the price cap will go up again in October and again January 2027 but could fall in April 2027 – although it’s important to emphasise, forecasts can change depending on what’s happening in global energy markets.

If the forecasts are correct, households on standard variable tariffs could see some relief from rising energy costs in the months ahead. However, there are no guarantees as prices are influenced by a number of factors like international gas prices and world events, which means predictions can change quickly.

That’s why many people are weighing up whether to stay on their existing tariff or switch to a fixed deal.

Fixed tariffs offer certainty because the price you pay is locked in for a set period. This can make budgeting easier and protect you from potential future price hikes. On the other hand, if prices fall, households on fixed deals may not benefit from those reductions until their tariff ends.

There isn’t a single right answer for everyone. The best option depends on your circumstances, how comfortable you are with uncertainty and whether having predictable monthly bills would help you manage your budget.

Whatever happens to the price cap, there are steps you can take now to stay on top of things. Check that your energy provider has accurate meter readings, review your monthly payments regularly and make sure you’re receiving any support you’re entitled to.

If you are worried about paying your energy bills, speak to your energy supplier or a charity such as Marches Energy Agency, Energy Saving Trust, LEAP (Local Energy Advice Partners) or National Energy Action.

If you're a Housing Plus Group customer and would like help understanding your options, get in touch with our Money Matters team.

Our customers can also speak to our Energy Advice team for advice and support. Our Energy Advice service is funded by the Cadent Foundation.

5th June 2026