The new energy price cap came into effect on 1 January 2026, and millions of UK households are now paying more for their gas and electricity. But there is good news: you can beat the price cap and get £50 free credit by switching to Octopus Energy today.
What Is the January 2026 Energy Price Cap?
Ofgem announced the energy price cap for January to March 2026 at £1,758 per year for a typical dual fuel household paying by Direct Debit. This represents a slight increase of about 0.2% from the October 2025 cap of £1,755.
The mixed news is that while gas unit rates have actually fallen (helpful during the coldest months), electricity unit rates and standing charges have increased, pushing the overall cap slightly higher.
Key Price Cap Facts for January 2026
- Price cap: £1,758 per year (typical dual fuel, Direct Debit)
- Gas unit rates: Falling (good news for winter heating)
- Electricity unit rates: Rising slightly
- Standing charges: Increasing
- Period: 1 January to 31 March 2026
Why Octopus Energy Is Cheaper Than the Price Cap
Here's what many people don't realise: Octopus Energy is the only large supplier to have never charged the full Ofgem price cap. Their Flexible Octopus tariff is typically around £15 cheaper than the maximum allowed, and their fixed tariffs are currently around 5% below the cap.
This means that even before you factor in the £50 referral credit, you're already saving money by choosing Octopus over suppliers who charge the full cap amount.
How to Get £50 Credit When You Switch
On top of the savings from Octopus's lower rates, you can get an additional £50 credited to your account by using a referral link when you sign up. Here's how it works:
- Click a referral link (not type a code manually)
- Complete the sign up process which takes about 5 minutes
- Wait for your switch to complete (usually 2 to 3 weeks)
- Receive £50 credit after your first Direct Debit payment
Important: You cannot type the referral code manually on the Octopus website. The system only tracks referrals through clicked links.
Get £50 Credit + Beat the Price Cap
Switch to Octopus Energy using my referral link and get £50 credited to your account.
Click Here to Get £50 →Should You Fix Your Energy Tariff in January 2026?
Energy analysts predict further price cap changes in April 2026, with some forecasting a potential increase of 6 to 7 percent. If you're risk averse and want price certainty, Octopus's 12 month fixed tariff offers rates around 5% below the current price cap with no exit fees.
The beauty of Octopus's approach is flexibility. If a better deal comes along, you can switch tariffs without penalty. This removes the usual anxiety around fixing your energy rate.
What About Help With Energy Bills?
If you're struggling with energy costs, Octopus Energy offers Octo Assist, a £30 million support fund. This includes payment plans, hardship grants, free electric blankets for those in need, and help accessing the Warm Home Discount (worth £150).
You can also call the independent Energy Helpline on 0800 074 0745 for free advice on managing energy debt and switching suppliers.
The Bottom Line
January 2026 is an excellent time to switch energy supplier. The price cap has increased, but Octopus Energy charges less than the cap and offers a £50 referral bonus on top. With over 8 million UK customers and Which? Recommended status for 5 consecutive years, it's a switch worth making.
Use the link below to get your £50 credit and start saving on your winter energy bills today.
Ready to Switch?
Use referral code spiky-eel-111 and get £50 credited to your account.
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