What’s changed for two year tariffs in August 2026?
For the first time in a few years, you can actually find a two year tariff worth looking at. Most fixed deals since the energy crisis have topped out at 12 months, because suppliers didn’t fancy guessing wholesale prices two winters out. That’s started to shift.
British Gas kicked things off in May with a two year tariff called Fix & Fall, and it’s still on offer now. A handful of other suppliers have quietly followed with their own longer fixed deals. None of this means you should switch tomorrow, but it does mean the “do nothing and stay on the price cap” option isn’t the only sensible one any more.
Context matters here. The Ofgem price cap for a typical dual fuel household paying by direct debit is £1,663 a year for 1 July to 30 September 2026 (Ofgem, checked August 2026). That’s the number any fixed deal, two year or otherwise, needs to beat to be worth your while.
What is the British Gas Fix & Fall tariff?
Fix & Fall does what it says. You lock in a rate for gas, electricity and your standing charge for two years, so you know exactly what you’re paying regardless of what happens to wholesale prices or the price cap in between.
The twist is the “fall” part. After the first 12 months, if Ofgem’s price cap has dropped, British Gas will automatically cut your rate too, by up to £50 off the average dual fuel bill at the point of the July 2027 review (Centrica, checked August 2026). You don’t have to ring up and ask. It just happens.
Customers on the tariff also get half price electricity between 11am and 4pm on Sundays through British Gas’s PeakSave scheme, which is a nice bonus if your washing machine or dishwasher can wait for the weekend.
We’re naming it because it’s the clearest example on the market right now, not because we’re pushing you towards British Gas specifically. Plenty of households will be better off elsewhere depending on usage and postcode, so treat this as one option among several worth checking.
Is a two year tariff worth it right now?
The honest answer is: it depends on how much you value certainty over flexibility. Locking in protects you from a cap rise you can’t predict, which matters if your budget genuinely can’t absorb a bad quarter. It also saves you the faff of shopping around again next spring.
The trade off is that you’re locked in even if prices fall faster than expected. Roo would probably tell you to just crunch the numbers and stop overthinking it, and that’s not bad advice. Compare the fixed rate on offer against the current price cap, not against a guess about where prices might go.
A rough rule of thumb: if a two year tariff’s price sits meaningfully below £1,663 a year for typical use, and you’re not planning a house move any time soon, it’s worth a proper look. If it’s roughly in line with the cap, staying flexible probably makes more sense.
How do you compare two year tariff deals?
Don’t just glance at the headline annual figure. A few things are easy to miss when you’re comparing one of these longer deals against the price cap or against shorter fixed deals.
- Check the unit rates and standing charge separately, not just the total, since your actual usage will move the total up or down.
- Look for whether the deal includes a built in review, like Fix & Fall’s price drop mechanism, or whether it’s a flat rate for the full term regardless of what happens elsewhere.
- Confirm the exit terms. Some two year tariffs charge an exit fee if you leave early, others don’t, and it’s worth knowing which before you sign up.
- Factor in your own circumstances. If you’re renting short term or expect a house move, a long fix carries more risk than it does for someone settled for years.
The quickest way to see what’s actually available for your postcode and usage is to run a proper comparison rather than relying on headline “cheapest deal” claims, since availability and pricing both vary by region and payment method.
What if you need to leave a two year tariff early?
You’re not stuck the second you sign up. Every new energy contract in Great Britain comes with a statutory 14 day cooling off period, so if you change your mind almost immediately, you can back out without penalty. Our guide to the energy cooling off period covers exactly how that works.
After that window closes, leaving a fixed deal early can mean an exit fee, and with a longer fix that’s more time for one to apply. It’s usually a fixed amount per fuel, and suppliers have to tell you upfront what it is, so read that bit of the small print before you commit rather than after.
If your circumstances are likely to change (a move, a change in how you pay, a switch to a smart meter tariff) it’s worth weighing that against the security a two year tariff gives you.
Key takeaways
- Two year tariffs are back on the market for the first time in a few years, led by British Gas’s Fix & Fall.
- The Ofgem price cap is £1,663 a year for typical use on direct debit, 1 July to 30 September 2026 (Ofgem, checked August 2026): that’s your benchmark.
- Fix & Fall automatically lowers your rate after 12 months if the price cap drops, up to £50 off the average bill.
- Compare unit rates and standing charges, not just the headline total, and check exit fees before signing.
- You get a 14 day cooling off period on any new contract, two year tariffs included.
Two year tariff FAQs
- Is a two year tariff cheaper than the price cap?
- Sometimes, but not automatically. You need to compare the fixed rate directly against the current Ofgem price cap for your area and payment method, since some longer fixed deals sit above the cap and only make sense for the certainty they offer.
- What happens if the price cap goes up while I’m on a two year tariff?
- Nothing changes for you. That’s the whole point of fixing: your rate stays the same regardless of what the price cap does, up or down, for the length of the deal (aside from a scheme like Fix & Fall’s built in review).
- Can I switch away from a two year tariff if I find something cheaper?
- Yes, but you may pay an exit fee once you’re past the 14 day cooling off period, depending on the supplier and deal. Check the exit terms before signing rather than assuming they’re all the same.
- Does a two year tariff include the standing charge?
- Yes, reputable fixed deals lock in your standing charge alongside your unit rates for the full term, so both are protected from the quarterly price cap review, not just the unit rate.
- Is British Gas’s Fix & Fall available everywhere?
- Availability and exact rates vary by region and meter type, so it’s worth checking directly rather than assuming the headline rate applies to your postcode.
Doing nothing here doesn’t necessarily cost you money. It costs you certainty, and that’s the trade off worth sitting with before the next price cap review lands. A two year tariff isn’t automatically the smart move, and it isn’t automatically a trap either. It’s a genuine choice that didn’t really exist a year ago. Five minutes checking whether it beats what you’re paying now is time well spent.
If you want to see how a two year tariff stacks up against your current deal, you can compare energy deals for your postcode in a couple of minutes. For the basics on how fixed pricing works more generally, our guide to fixed price energy tariffs and our explainer on the energy price cap are both worth a read first.
