UK households face 13% rise in energy bills and new BNPL rules in July

From 1 July 2026 the UK energy price cap will rise to £1,862 per year for a typical dual‑fuel household, representing a 13 % increase. Ofgem said electricity unit rates will go from 24.67 p/kWh to 26.11 p/kWh and gas rates from 5.74 p/kWh to 7.33 p/kWh, while standing charges remain largely unchanged. The hike is driven by higher global wholesale gas prices linked to Middle‑East tensions and will affect roughly 65 % of homes on variable tariffs.

At the same time, the Financial Conduct Authority will tighten rules on buy‑now‑pay‑later (BNPL) services from 15 July. Lenders must run credit checks on every transaction, and Section 75 protection will apply to BNPL purchases between £100 and £30,000, giving consumers the same recourse as with credit‑card purchases. Back‑dating of interest on promotional periods will be banned, and customers will gain a formal right to refer unresolved disputes to the Financial Ombudsman Service.