Autumn Budget 2025: Energy bills to fall £150 from April 2026

Ildhund

There's what appears to be a sober review of what this all means here: What does the Budget mean for energy bills? | Nesta

wrf12345

As the £150 is coming off the unit rate rather than s/c (astonishingly, as they were claiming the s/c has to go up because of all these add-on costs), low users will save a lot less but pay more tax if their income goes up because of the frozen tax thresholds. Personally, I have the choice of using ISA money or SIPP drawdown, the one would take me over the frozen tax threshold, the other won't - guess which I will be using? However, even if paying more tax actual net income will still be up (assuming a salary increase which may not happen for many) so there may be a very minor feel good factor in this... assuming Ofgem don't find an excuse to put up the energy costs anyway in April. Getting rid of the absurd s/c's altogether would have scored vastly more political points than the sound bite £150 average reduction which many may not see due to other possible increases and low usage.

MattMattMattUK

wrf12345 said:

As the £150 is coming off the unit rate rather than s/c (astonishingly, as they were claiming the s/c has to go up because of all these add-on costs), low users will save a lot less but pay more tax if their income goes up because of the frozen tax thresholds. Personally, I have the choice of using ISA money or SIPP drawdown, the one would take me over the frozen tax threshold, the other won't - guess which I will be using? However, even if paying more tax actual net income will still be up (assuming a salary increase which may not happen for many) so there may be a very minor feel good factor in this... assuming Ofgem don't find an excuse to put up the energy costs anyway in April. Getting rid of the absurd s/c's altogether would have scored vastly more political points than the sound bite £150 average reduction which many may not see due to other possible increases and low usage.

As has been explained to you hundreds, if not thousands of times, there is a perfectly rational, sensible and "fair" reason for the standing charge to exist. You wanting it abolished and added to the unit rates because you think that would benefit you is not "fair", it is inherently selfish. Additionally your idea of how much would need to be added to unit rates demonstrates a complete lack of understanding of the costs. I implore you to educate yourself on the actual facts and figures. 

molerat

Lorian said:

I'll believe it when I see it applied to my fix.

Agreed.  It seems it will only strictly apply to the price cap as that is determined by other than the suppliers, any other tariff is down to the supplier and some will see it as a nice little earner.  The removal of VAT would have been clear, transparent and applicable to all, maybe not as big a saving but smoke and mirror free.

Ageingdinosaur

Newbie to the forum here but I'd welcome opinions on  whether I should consider fixing in the light of the budget "reduction" in energy bills from next year.

I am a relatively low user around £1200 per year on dual fuel. I am currently on a capped tariff. Should I still consider fixing?

Scot_39

m_c_s said:

Looney economics. Save £150 on energy but pay it back, plus some more, in higher taxes. Just a transfer to general taxation.

Where schemes like Eco used to be and where they always belonged.

Energy bills should be just that - energy bills.

Not substitutes for proper PROGRESSIVE taxation and proper benefits.

Shame she hasn't AFAIK removed the WHD levy as well.  Something that really only exists because benefits have not kept track with energy bills - still well above pr3 crisis levels.  But in part because as my other posts the policy line has increased bg £79 / 50% in 21 months to £236.  Now according to BBC budget will reduce by more than tgat massive inflationary increase - by removing £147 

WHD added Extra £17 oct to support extension to 2.7m more homes, another £7 in Jan,  total cost maybe £31 (150×6.2/29) --> £45 (17×(1+3.4/2.7)+7).  Take it out of bills - and add c£2pw to benefits.  Same net result for recipients.

Everyone else's bills go down and yes taxes go up - progressive taxes based on income - not energy bills skewed to consumption penalising the poor with high energy needs and letting the rich with solar battery arrays etc off their social obligation.

molerat

Ageingdinosaur said:

Newbie to the forum here but I'd welcome opinions on  whether I should consider fixing in the light of the budget "reduction" in energy bills from next year.

I am a relatively low user around £1200 per year on dual fuel. I am currently on a capped tariff. Should I still consider fixing?

You need to work out the actual savings against the cap especially as we are into the high use period.  A current fix at cap usage is £190 below the cap.  Still likely a saving even if the provider does not reduce the rates in April, you can look at fixes with no exit fee.

Scot_39

Ageingdinosaur said:

Newbie to the forum here but I'd welcome opinions on  whether I should consider fixing in the light of the budget "reduction" in energy bills from next year.

I am a relatively low user around £1200 per year on dual fuel. I am currently on a capped tariff. Should I still consider fixing?

But by capped do you mean one of the discounted pseudo social tariffs (didnt realise still going but suppliers had thrm during crisis again for those in debt) or just the Ofgem cap.  If a special deal you'd need to carefully consider the benefits and risks of losing it if more.

If havjng thought about your capped deal - you decide to fix and worried tge savings might not be passed through - you could try and find a fee free fix for 4 months.  Octopus used to do them regularly.  And come Apr just switch to cheaper deal if price doesn't drop.

There is one listed in the current msd table here

https://www.moneysavingexpert.com/utilities/are-there-any-cheap-fixed-energy-deals-currently-worth-it/


Dont forget if switching to get a referral code for another £50 duel fuel iirc from friends family or colleagues etc.

EssexHebridean

@Ageingdinosaur If you are currently on the cap then you should probably look for a fix anyway - see what is on offer currently, compare with the rate you are o at the moment, and if you go for something with no exit fee you can swap again if something better comes along. 

justwantedtosay

RR was clearly implying on the Today programme this morning that everyone will save £150, but that, like most things she says, is a lie. 

Why on earth wasn't the standing charge cut rather than the unit price? That would have been more progressive and is what Martin has campaigned for.

And apparently the larger part of the supposed £150 saving is only temporary and prices will go back up again in 2029. Funny how that wasn't mentioned in the speech.