Households across Great Britain are set for a welcome financial break, with a significant energy bill reduction confirmed in the recent Autumn Budget.
What the Budget Means for Your Bills
Chancellor Rachel Reeves has announced that energy bills for households in England, Scotland, and Wales will fall by £150 a year on average. This change is scheduled to take effect from 1 April 2026.
The reduction stems from the government's decision to remove specific environmental levies that consumers currently pay through their bills. The primary measures driving this change are the conclusion of the Energy Company Obligation (ECO) scheme in March 2026 and a reduction in the amount households contribute to the Renewables Obligation (RO) scheme.
Martin Lewis's Crucial Warning on Fixed Tariffs
While the price cut is government-led, consumer champion Martin Lewis and his MoneySavingExpert.com team are urging clarity for customers on fixed-rate energy deals. Lewis has highlighted the critical need for suppliers to pass this saving on to all customers, not just those on variable tariffs.
"Having spoken to a senior member of the Government on energy bills since the Budget announcement, there is a clear expectation that suppliers will pass on this cost to people on fixes," Lewis stated.
He pointed to a precedent set by the Energy Price Guarantee, where subsidies were applied to fixed-rate contracts. Lewis described the current situation as the "mirror image" – the removal of a cost rather than the addition of a subsidy – and confirmed "there is no problem with the process."
He issued a strong warning, saying it would be "unthinkable" and "destructive" if the savings were not passed on, as it would break consumer trust in the energy switching market. Lewis expressed confidence that the savings would be applied, adding, "otherwise I will be in revolt."
Looking Ahead to 2026
The combined effect of ending the ECO scheme and reducing the RO contributions will provide a tangible financial benefit for millions. From 1 April 2026, a typical dual-fuel household can expect to see their annual energy costs drop by around £150.
This move signals a shift in how green policy costs are funded, directly impacting household budgets and offering relief amid the ongoing cost of living challenges.
