Nearly 12 million households could be heading blindly towards a fresh energy bill blow – with many unaware their costs are about to jump sharply.
Research by Uswitch reveals that 63% of homes on standard tariffs do not realise prices are expected to rise from 1 July, while 17% mistakenly believe bills will fall. The increase is being driven by the energy price cap, overseen by Ofgem, which is forecast to climb 12% – or equivalent to £202 a year.
That would push the typical annual bill from £1,641 to £1,843, piling further pressure on already stretched household finances.
Families braced for squeeze
The impact could be severe. Around 66% of households say even a 10% rise would hit their budgets.
- 10% would be forced to dip into savings
- 17% would cut back on essentials such as food or transport
Younger households are particularly exposed, with 18% saying they would need extra income and 11% expecting to fall into debt Despite this looming crunch, confusion remains widespread.
More than a quarter (26%) of households on standard tariffs do not know what is happening to the price cap in July, while 19% believe costs will drop.
False confidence costing households
Half of those on standard tariffs – 51% – believe they are already on the best deal, even though cheaper options exist. This misplaced confidence means 47% are not planning to switch, with only 13% intending to move to a fixed tariff.
Yet fixed deals could save a typical household £233 compared with the expected July price cap, according to the analysis. There are currently five fixed tariffs cheaper than standard rates, with around 30 deals available lasting between 10 months and two years.
‘No good deals’ myth holding people back
A significant number of households are failing to act due to misconceptions:
- 25% say they are happy with their current tariff
- 21% wrongly believe there are no good deals available
- 16% think all tariffs are the same
- 15% believe switching is too complicated
In reality, switching can take just minutes. Ben Gallizzi, energy expert at Uswitch, said: “Nearly 12 million households on standard tariffs are sleepwalking towards energy bill hikes, with their prices predicted to increase 12% in July.
“More worryingly, almost half of those on standard tariffs mistakenly believe that they’re on the best deal, despite the fact that the average home could save hundreds of pounds with a fixed deal.
“Two-thirds of households say even a 10% increase in their energy bills would hit their finances, so now’s the time to act to protect yourself from higher costs. Take a moment to check online to see what deals are available to you. The cheapest fixed deals available at the moment are 13% less than the predicted July price cap, so we urge households to lock in lower rates while they’re available.”
Winter warning
The pain may not end in summer. Forecasts suggest higher energy rates could persist into autumn and winter – when usage typically rises – raising the prospect of even steeper bills later in the year. For now, households are being urged to act quickly – or risk being caught out when the higher cap takes effect in July.