What the price cap did in October
From 1 October to 31 December 2026 the energy price cap works out at £1,723 a year for a typical household paying by Direct Debit, up 4% on the previous quarter. Most of the rise was on gas. The cap is a limit on unit rates and standing charges, not on your bill, so a home that uses more pays more.
| Fuel | Unit rate | Daily standing charge | VAT |
|---|---|---|---|
| Electricity | 26.32p per kWh | 54.83p | None until 31 March 2027 |
| Gas | 7.97p per kWh | 29.68p | 5% |
Those are Ofgem’s published averages; your own rates depend on region and payment method. The next cap, for January to March 2027, is announced by 25 November 2026. Our energy price cap guide explains how it works and what to do if you are struggling now.
Two things in that table matter for this guide. Gas has a daily standing charge of its own, paid whether or not you use any. And electricity has no VAT until 31 March 2027, while gas keeps 5%.
Why “wait and see” is a decision too
The cap moves every quarter, so there is always a next announcement to wait for. Meanwhile the boiler gets older. When it fails, the quickest replacement is another gas boiler, and a gas boiler fitted this winter will still be heating the home in 2040. That is the decision most people make by not making one.
Getting off gas is not something to do in a week, and it does not need to be. It is a sequence, and the sensible time to start it is while the boiler still works.
What “off gas” means in practice
- Heating and hot water from a heat pump, with a hot water cylinder in place of a combi. The Boiler Upgrade Scheme pays £7,500 towards an eligible air source or ground source heat pump in England and Wales, or £9,000 for eligible oil and LPG homes off the gas grid.
- An electric hob in place of a gas one, and an electric fire if there was a gas fire.
- The gas meter removed and the account closed, which ends the gas standing charge.
- Optionally, your own generation: solar panels, and a battery to carry daytime electricity into the evening.
What changes on day one, and what does not
| What happens | When | |
|---|---|---|
| Gas unit charges | Stop, because nothing burns gas | The day the heat pump and hob are in |
| Gas standing charge | Stops | When the meter is removed and the account closed |
| Electricity use | Rises, by the heat pump’s use, mostly in winter | From day one |
| Electricity standing charge | Continues, every day | Always |
| Electricity bill | Changes shape: lower with solar in summer, higher in winter than before | Season by season |
| Export income | Starts, if you have solar and a Smart Export Guarantee tariff | From the first export reading |
We do not publish savings figures, because the result belongs to one home and one tariff. What can be said plainly is that the gas side of the bill ends, the electricity side continues, and the balance between them depends on the home’s heat loss, the heat pump’s design and the tariff you choose. Our heat pump running costs guide shows the sum.
Solar’s part, season by season
Solar makes most of its electricity between April and September. A heat pump uses most of its electricity between November and February. Within a day they fit well; across a year they pull apart.
Solar panels Electricity generated
Heat pump Electricity used
That is why solar reduces the electricity you buy without removing it, and why a battery helps with evenings rather than with winter. Electricity you export is paid for under the Smart Export Guarantee, at rates each supplier sets. Our guide to an all-electric home sets out the full sum and what a “zero bills” offer really is.
The order that works
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Step 1: Insulation and draughts first
Every unit of heat the house keeps is one the heat pump never makes. Our insulation grants page lists what can pay for it.
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Step 2: Heat-loss survey and the grant
An MCS-certified installer sizes the heat pump to the home and quotes with the £7,500 grant deducted. They apply to Ofgem; you confirm within 14 days.
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Step 3: Heat pump installed, boiler removed
A few days of work. The gas is capped at the boiler. Heating and hot water are now electric.
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Step 4: Hob changed, meter removed
Once nothing uses gas, ask the supplier to remove the meter and close the account. Get the cost in writing.
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Step 5: Solar and a battery, if you want them
Sized against the heat pump’s expected electricity use, with the electrical work done once. The grant does not cover them.
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Step 6: Tariffs
Compare import tariffs with the heat pump in mind, and export tariffs if you have solar. The right pair matters as much as the equipment.
Leaving the gas network is the step people least expect to be awkward. Ofgem has found that the current process for households to disconnect is costly and hard to navigate, and is reviewing it. Until that changes, get the meter removed, keep the paperwork, and do not pay for the pipe to be dug out unless building work needs it.
What it costs, and what we will not tell you
The heat pump has a grant; the hob, the meter removal, the solar and the battery do not, although installed heat pumps, solar and batteries have 0% VAT until 31 March 2027. The Warm Homes Plan is setting up low-interest loans through lenders, which our Warm Homes Plan loans page tracks.
We will not tell you what your bill will be afterwards, and we will not tell you it will be zero. What we can say is that a home off gas has one bill instead of two, no gas standing charge, and a heating system that is not tied to the next gas price announcement.
Start with the boiler’s age, not the cap
If your boiler is old, unreliable or facing a big repair, that is the signal, not the next Ofgem announcement. Have the survey while the heating still works. The grant is not affected by the boiler running, and the decision gets made in a warm house.
Check your property
Pick the grant you want to check. Three quick checks, then our team calls you back. It is free, with no obligation.
