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Energy Price Cap Rises as Fuel Bank Foundation Warns Families Face a Winter Double Whammy of Higher Energy and Food Costs

June 29, 2026

The energy price cap rises on 1st July by around 13%, reflecting ongoing volatility in global energy markets. While the increase adds approximately £220 a year to the average household bill, households may not immediately feel the full impact because energy use is typically lower during the summer months. However, Fuel Bank Foundation is warning that the real financial pressure will arrive later in the year.

"Today's increase in the energy price cap is concerning, but for many households the worst is yet to come. Energy use is lower during the summer, meaning families may not immediately notice the full impact. The real challenge will arrive later in the year, when heating becomes essential and the colder weather drives up household energy use."

"We expect annual energy costs could approach £1,900 by winter if current market forecasts prove accurate. For the people we support, that could mean roughly another £300 in costs over six months alone. Many of these households are already rationing heating, skipping meals and going without basic essentials."

Matthew Cole, CEO at Fuel Bank Foundation

The charity warns that rising energy bills are only one part of a wider affordability crisis facing low-income households.

Analysis suggests that by the end of 2026, food prices could be 50% higher than they were at the start of the cost-of-living crisis in 2021. While the average UK household spends around 10% of its income on food, many low-income households spend between 20% and 25%.

Fuel Bank Foundation says households are facing a winter “double whammy” of further rising energy and food costs, with both pressures expected to intensify in the months ahead.

Matthew added:

"For the households we support, fuel crisis doesn't exist in isolation. Families are trying to absorb higher food costs, higher housing costs and the rising cost of everyday essentials at the same time. When both food and energy costs rise together, there is simply less room to cope."

“We hope recent developments in the Middle East lead to greater stability in global energy markets. But for households already living on the edge, that offers little reassurance today. We want policymakers to recognise the bigger picture. The reality is that many of the people we support are facing rising costs across the board, and the challenge of getting through next winter remains very real."

Fuel Bank Foundation is calling for a fast, targeted support scheme delivered automatically through energy bills, ensuring households receive help when they need it most without having to navigate complex application processes. This could prevent significant hardship for millions of households, and the benefits would extend far beyond energy affordability alone, it could ease pressure on the NHS, improve educational outcomes for children and support productivity across communities.