Millions of households across the UK are set to receive a significant financial boost in the new year, as leading energy suppliers confirm they will slash bills by an average of £150.
Budget Announcement Sparks Widespread Savings
The major cost-of-living support measure was first announced by Chancellor Rachel Reeves during the recent Budget. Suppliers, including industry giants British Gas, Octopus Energy, and Eon Next, have now begun outlining exactly how these savings will be passed on to consumers.
This move will provide relief for families grappling with high energy costs, with the new, lower rates scheduled to take effect from April 2025. Crucially, the savings will apply to customers on both standard variable tariffs and those who have locked into fixed-rate deals.
Experts and Advocates Welcome the Move
Consumer champion Martin Lewis has publicly welcomed the confirmation, stating the move was "exactly what he had called for." He emphasised the importance of ensuring households on fixed tariffs would also benefit, preventing them from being penalised for seeking price certainty.
Richard Neudegg, director of regulation at the comparison service Uswitch, praised the clarity provided by the three suppliers. "British Gas, Eon Next and Octopus Energy deserve credit for removing all confusion and confirming that their fixed deal customers will automatically receive the Budget savings in April," he said.
What This Means for Households
Neudegg highlighted a key opportunity for consumers: "Households can now confidently sign up with these suppliers for a fixed deal that will effectively save them money twice. They can secure cheaper rates now during the coldest months of winter, and they’ll see their prices drop even further in April without having to take any further action."
This automatic application of the discount is a critical detail, ensuring customers do not need to switch tariffs or contact their supplier to receive the £150 reduction. The move represents a direct intervention to ease the persistent pressure on household finances from energy costs.
