LONDON (dpa-AFX) - Energy bills across UK are set to become cheaper from April, as Ofgem has confirmed the price cap will fall by 7 percent, driven by the government's action to remove an average of 150 pounds of costs off bills.
This intervention at the Budget - including scrapping the Energy Company Obligation scheme - was only possible due to the choices made to ask the wealthy to pay their fair share, in order to tackle the cost of living for ordinary families.
After energy bills rocketed under the previous government, average energy bills were lower in 2025 than 2024 in real terms - and now will be even lower in the second quarter of 2026, according to the Prime Minister's Office.
The independent Resolution Foundation predicts that the typical energy bill across 2026 will be around 200 pounds lower in real terms than in 2024, subject to factors including wholesale price movements.
In another milestone in the government's mission to cut the cost of living for the British people, around six million households will be eligible this winter for 150 pounds in Warm Home Discount, following its expansion last year to all eligible households on means-tested benefits.
'Energy bills are at the front of everybody's mind, and I know they've been too high for too long. I promised to bring bills down and I meant it. And today - because of the actions this government took at the last Budget - the price cap on energy bills has come down by £117,' said Prime Minister Keir Starmer.
'That means lower energy bills for millions across the country. But I know there is more to do - and my government is pulling every lever to bear down on the cost of living and protect the pound in the pockets of working people'.
The change to the energy price cap announced Wednesday will see bills fall by 117 pounds per year from April for a 'typical' household on a default tariff, as defined by Ofgem - roughly equal to a 10 pound reduction in monthly bills.
The action the government has taken will particularly benefit households who use more electricity, many of whom are on lower incomes. It will also support those on fixed tariffs, with suppliers confirming they will be passing on the savings to customers who have chosen to fix their rates off the price cap.
10 Downing Street said that in the coming weeks, ministers will hold a roundtable with all major electricity suppliers to discuss how these savings will be passed on - ensuring all eligible households on domestic contracts are supported.
The government is taking the long-term action needed to bring bills down as the nation's enrgy bills remain higher than before Russia's invasion of Ukraine, with wholesale gas costs for consumers still 40 percent higher than their historic levels.
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