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

Spoonie_Turtle

Scot_39 said:

Ildhund said:

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

I wonder how many households really use nearly 6000 kWh with a heat pump - at a cop of 3 - on average - thats 18000 kWh - 50% more than the median TDCV for gas.

Don't forget cooking and all other electric usage, plus possibly electric showers, that 6,000kWh isn't all heat pump use.

And homes with heat pumps aren't likely to be particularly small, because flats rarely have them.

I don't know what typical non-heating electricity usage is for an all-electric household.  If it's 2,000kWh for instance then that means 4,000 on heating and hot water which ≈ 12,000kWh for gas.  Or 1,500 would make 4,500 ≈ 13,500kWh gas equivalent.  But either one of those does sound rather more typical than 18,000kWh gas equivalent.

Chrysalis

Rachel has a mystic meg in her cupboard then on the market?
The wording is pretty bad.
The government policies part of annual bill will be reduced by circa £150 per year starting from April 2026.

Chrysalis

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.

True for those with the broadest shoulders and households with many adults, those will be standing out on here criticising the change.

Per household levies are the most cruel and unfair out there.  It also shouldnt be the job of energy companies to be tax collectors.  It was inappropriate in the first place to put it on energy bills.

Looks like most of it is only temporary anyway, after 2029 they moving most of it back to bills.  Very sly.

Chrysalis

wakeupalarm said:

So according to the figures on MSE news story, Rishi Sunak and his swimming pool will get considerably more than £150, whilst a low user will get considerably less than £150.
Were these policy costs not added to standing charges?  So why are they coming off unit rates?

This change will make standing charges even more of a dominant portion of low users bills.

I think it needs someone to probe to get this information to see if already was on the unit rate or not.

If the announcement uses wording like average or typical, that would suggest unit rate.  Just looked at the MSE article it is unit rate, if it already was on the unit rate though then its logical to remove it from there, but I agree they playing games if these were previously on the SC.

The thread title is very misleading.

Sea_Shell

IF they decide to give this discount by lowering the electricity tariff, then Martin was pressing Ed Miliband that this should also apply to those on a fix at the time.   

IF that happens and they knock, say, 5p of each kwh rate, for everyone, including 'fixers', how long is this for?

A year?       

What would then happen if you need to change tariff (fix again) during that time, and on what basis would your new quotes be shown?    With or without the '3p' ?     Your "fix" might increase by 3p again, once the scheme finished.

Interested to get the details the 'how' of all this.   

It would be easier just to give everyone £150 credit on their bills, if that it the true 'average' amount anyway.

fireball1955

MSE_Clare said:

From 1 April 2026, households in England, Scotland and Wales will see their energy bills fall by £150 a year on average, the Chancellor has confirmed in the Autumn Budget. The reduction will take place due to various green levies paid by consumers being removed from bills. But MoneySavingExpert founder Martin Lewis has urged the Government to pass these savings onto those on fixed tariffs too.

Autumn Budget 2025: Energy bills to fall £150 from April 2026 – and Martin Lewis has pushed for this to include households on fixes

If you haven't already, join the forum to reply.

My tariff with Outfox the Market is due to finish on 27 February. I called them today and to ask if I sign to a new fixed tariff before April would I benefit from any price reductions in April.

I was told categorically No. If I sign up to any fixed tariff and then the price dropped in April I would not get any reduction.

Lorian

Hedging your bets you want a fix with no exit fee everything else being equal (which it may not be)

molerat

fireball1955 said:

MSE_Clare said:

From 1 April 2026, households in England, Scotland and Wales will see their energy bills fall by £150 a year on average, the Chancellor has confirmed in the Autumn Budget. The reduction will take place due to various green levies paid by consumers being removed from bills. But MoneySavingExpert founder Martin Lewis has urged the Government to pass these savings onto those on fixed tariffs too.

Autumn Budget 2025: Energy bills to fall £150 from April 2026 – and Martin Lewis has pushed for this to include households on fixes

If you haven't already, join the forum to reply.

My tariff with Outfox the Market is due to finish on 27 February. I called them today and to ask if I sign to a new fixed tariff before April would I benefit from any price reductions in April.

I was told categorically No. If I sign up to any fixed tariff and then the price dropped in April I would not get any reduction.

Do you really think that a front line call centre operative really has a clue about how this will work ?

spot1034

fireball1955 said:

MSE_Clare said:

From 1 April 2026, households in England, Scotland and Wales will see their energy bills fall by £150 a year on average, the Chancellor has confirmed in the Autumn Budget. The reduction will take place due to various green levies paid by consumers being removed from bills. But MoneySavingExpert founder Martin Lewis has urged the Government to pass these savings onto those on fixed tariffs too.

Autumn Budget 2025: Energy bills to fall £150 from April 2026 – and Martin Lewis has pushed for this to include households on fixes

If you haven't already, join the forum to reply.

My tariff with Outfox the Market is due to finish on 27 February. I called them today and to ask if I sign to a new fixed tariff before April would I benefit from any price reductions in April.

I was told categorically No. If I sign up to any fixed tariff and then the price dropped in April I would not get any reduction.

Not only would a call centre operator not know the answer to this, I doubt anyone either at the supplier or in the Treasury (or other govt department) would at this stage. They seem to be making it up as they go along. 

MattMattMattUK

Chrysalis said:

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.

True for those with the broadest shoulders and households with many adults, those will be standing out on here criticising the change.

You need to reflect on why you often feel the need to try and claim that those with differing views are wrong because you view them as holding them only for personal gain, rather than a different viewpoint because of a rational analysis.

Chrysalis said:

Per household levies are the most cruel and unfair out there.

Appeals to emotion are not helpful to the discussion, per household charges have their place, they not inherently unfair and they certainly not cruel.

Chrysalis said:
It also shouldnt be the job of energy companies to be tax collectors. 

Why not? Most businesses in the UK are tax collectors, supermarkets, pubs, restaurants, coffee shops, petrol stations, EV charging stations, fashion retailers, plumbers, electricians and many many others. Why should energy suppliers be any different?

Chrysalis said:
It was inappropriate in the first place to put it on energy bills.

It was not. This is again an attempt to try and use emotional language to paint the decision you disagree with as emotionally negative without having to engage with setting out a rational position against the thing you disagree with.

Chrysalis said:

Looks like most of it is only temporary anyway, after 2029 they moving most of it back to bills.  Very sly.

It is not "sly" it is a temporary moving of costs, fully laid out in the budget documents. In 2029 there will be a new government in charge, they can set their own energy policy, or Labour could change energy policy at any time.