Should you fix?
A fix is not a discount, it is insurance. You pay a known price for a year or two and give up whatever a falling cap would have given you. Fixing makes sense if a fall in your bill would be nice and a rise would be a problem — a tight budget, a fixed income, a cold house. Staying on the capped variable rate makes sense if you could absorb a rise and would rather keep the upside.
- ●Compare the fix against the cap over the whole length of the fix, not against today's cap. The cap changes every three months; the fix does not.
- ●A fix a few per cent under the cap is a real saving only if the cap does not fall by more than that. Nobody can tell you whether it will.
- ●Check the exit fee before the price. A cheap fix with a £100-a-fuel exit fee is expensive if anything changes.
- ●Two-year fixes are usually cheaper per year than one-year fixes at the moment, and they lock you in for twice as long.
The cap in force is for 1 July to 30 September 2026, at £1,663 a year for a typical direct debit home. Judge any fix against your own yearly cost, not against that.