This dashboard estimates what UK households will pay for gas and electricity in 2026-27 and 2027-28, and what Autumn Budget support options would cost and who they would reach. We model every household's bill at the prices Ofgem has set and forecasters expect, and score seven options against that baseline using PolicyEngine.

Proposals behind the options

Proposals include a targeted energy discount (Resolution Foundation), a social tariff with policy costs moved off bills (Resolution Foundation), a discounted essential block of energy (Joseph Rowntree Foundation), a temporary cap on bills (IPPR), a reformed Warm Home Discount and debt relief (Citizens Advice, Energy UK, National Energy Action), and the government's removal of VAT from electricity bills (UK Government).

Baseline: energy prices over time

The typical bill rises from £1,477 in April–June 2026 to a forecast of about £2,000 in January–March 2027. This is Ofgem's headline cap figure: the annual bill of a dual-fuel direct-debit household using typical consumption (2,500 kWh electricity, 9,500 kWh gas).

Where each quarter's prices come from

The baseline is current law at forecast prices. Ofgem has announced the cap to December 2026 (unit rates and standing charges); Cornwall Insight forecasts January–March 2027, the average of EDF, British Gas and E.ON Next forecasts covers April–September 2027, and OVO's forecast covers October–December 2027. No forecaster publishes January–March 2028, so we hold it at the October–December level: that quarter is our assumption, not a forecast. OVO quotes £1,846 with electricity VAT-free; under current law VAT returns to 5% in April 2027, which takes the bill to £1,890.

£/yr, typical dual-fuel direct-debit bill
OfgemOfgemOfgemCornwall InsightSupplier averageSupplier averageOVOOur assumption
Typical billSolid line: announced. Dashed: forecast or assumed.
Show values
Baseline £/yr, typical dual-fuel direct-debit bill by quarter
QuarterTypical billStatusSource
Apr–Jun 2026£1,477AnnouncedOfgem cap
Jul–Sep 2026£1,664AnnouncedOfgem cap
Oct–Dec 2026£1,724AnnouncedOfgem cap (electricity VAT-free)
Jan–Mar 2027£1,998ForecastCornwall Insight, 30 Sep 2026
Apr–Jun 2027£2,074ForecastSupplier average (EDF, British Gas, E.ON Next), 6–7 Oct 2026
Jul–Sep 2027£1,912ForecastSupplier average (EDF, E.ON Next), 6–7 Oct 2026
Oct–Dec 2027£1,890ForecastOVO, 7 Oct 2026
Jan–Mar 2028£1,890AssumedOur assumption: no forecast published; held at the Oct–Dec 2027 level

The policy options

Targeted discount

Who is eligibleHouseholds receiving a means-tested benefit, or whose highest individual income is under £24,000. Great Britain only.
How it worksA discount on the household's gas and electricity bill, worth £175 a year on average in the flat version. Income is self-declared this winter and checked by HMRC later.
Where it was proposedResolution Foundation, Billing me softly (August 2026).
How we model itA simplified illustration, not RF's exact design: a flat £175 to every eligible household, assessed on annual income, with full take-up. RF discounts unit rates, activates by quarter, uses the previous three months' income and expects incomplete take-up. Counted in HBAI income by assumption, by analogy with the Warm Home Discount.

Budget responses: cost and reach

What each option would cost the government in 2027-28, the average gain per household and the share of households it reaches. The selected option is highlighted; select a column to change it.

How costs are calculated

Four options are payments simulated as PolicyEngine reforms against the 2027-28 baseline (targeted discount, Cost of Living Payment, Warm Home Discount top-up and £400 credit); their cost is the change in household net income summed over all households. Three are price reductions calculated directly from each household's bills (cap freeze, VAT extension and levy removal); their cost is the total reduction in bills. Gains are averaged per household.

£bn a year
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£8bn
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Option
Show values
Cost to government by option, 2027-28
OptionCostAverage gainHouseholds helped
£400 to every household£11.78bn£400100.0%
Cap freeze at April–June 2026 tariffs£11.39bn£38794.7%
Remove remaining levies£3.83bn£13097.4%
£300 Cost of Living Payment£2.43bn£8327.5%
Targeted discount (RF, simplified) (selected)£2.11bn£7240.9%
Extend electricity VAT cut£1.45bn£4997.4%
Warm Home Discount +£100 (proxy)£0.79bn£2726.7%