Typical annual energy bills in Britain will rise 13% to £1,862 this July

Household energy bills in England, Scotland and Wales are set to rise by 13% in July, with the typical annual bill increasing by £221 to £1,862, according to Ofgem and BBC News reporting. The increase is being driven by higher wholesale energy costs linked to the US-Israel conflict with Iran, and it will affect households on variable tariffs, though those on fixed deals will not be hit by the change.

The timing matters because experts say the steps people take now can reduce the damage when higher winter usage arrives. BBC News reports that around four in 10 households are currently on fixed deals, leaving the rest exposed to the cap rise unless they switch or cut usage. That means millions of homes will need to think carefully about both price and consumption in the weeks ahead.

One of the most immediate ways to save money is to shop around for a better tariff, particularly if you are not on a fixed contract. The BBC says there are opportunities for people to compare offers and move to cheaper deals, while those already on fixed rates should check when their contract ends so they are not automatically rolled onto a more expensive tariff later.

Energy-saving behavior can also make a noticeable difference. BBC News cites experts who recommend simple measures such as turning the thermostat down a little, heating only the rooms you are using, bleeding radiators so they work more efficiently, using a short shower timer, and sealing drafts around doors and windows. These changes are low cost, but they can add up over time.

The advice is especially relevant because the July price cap change comes before the colder months, when households typically use more gas and electricity. As reported by BBC News, the idea is to act early rather than wait until bills are already high, when it becomes harder to keep spending under control.

For families already struggling with the cost of living, the rise will be felt in monthly budgets as well as annual totals. BBC News says the average household bill will go up by about £18 a month, which may be manageable for some but difficult for those already cutting back on other essentials.

What happens next will depend on future wholesale energy prices and whether more households move onto fixed deals or find ways to reduce usage. For now, the clearest message from the BBC’s reporting is that small changes made before the colder season could help soften the impact of the coming rise.