Households in Britain to see energy bills fall from April

Households in Britain are set to benefit from a 7 per cent decrease in energy bills starting in April 2026. This reduction follows the government’s decision to cut green levies on energy bills and is projected to provide significant relief to families facing financial pressures.

According to Cornwall Insight, an energy consultancy, the price cap on standard tariffs is expected to decrease by approximately £117 annually, bringing the typical annual bill down to £1,641. This forecast aligns with government efforts to ease the burden of energy costs amid fluctuating wholesale prices.

The Chancellor of the Exchequer announced during November’s budget that the average household energy bill would be reduced by £150 from April. This initiative involves eliminating the Energy Company Obligation and reallocating the costs of supporting older renewable energy projects to general taxation. Although these changes represent a step forward, they have been somewhat counterbalanced by increased charges necessary for maintaining Britain’s electricity and gas networks.

Craig Lowrey, the principal consultant at Cornwall Insight, emphasised the positive impact of these changes on household budgets, particularly during times of rising living costs. He indicated that while the investment in energy infrastructure is critical for long-term stability, it will not come without costs.

Emily Seymour from the consumer group Which? stated that although a cut in bills is welcome news, energy rates remain substantially higher than they were five years ago. She advised consumers to remain vigilant and consider potential savings by switching suppliers if they are not tied to a fixed deal.

The Department for Energy Security and Net Zero reiterated its commitment to reducing household energy costs. As Ofgem prepares to disclose the final price cap figure next week, it is important for households to carefully monitor the adjustments in unit costs and standing charges.