The UK Government has officially confirmed a significant financial boost for households, with a £150 reduction in energy bills set to take effect from April 2025.
Budget Announcement Brings Welcome Relief
Chancellor Rachel Reeves announced the measure as part of the recent Budget, aiming to deliver tangible support to families and individuals grappling with ongoing cost-of-living pressures. The discount is intended to provide a noticeable difference to household finances.
Energy suppliers have now begun detailing how the £150 cut will be implemented. Major companies including British Gas, Octopus Energy, and Eon Next have confirmed that the saving will be passed on automatically to customers. Crucially, this applies to those on both variable and fixed tariffs.
Industry and Campaigners Welcome Clarity
Consumer champion Martin Lewis expressed his delight at the confirmation, stating it was "exactly what I have been calling for." He emphasised that this move allows households to confidently choose fixed tariffs, which are often cheaper, without fearing they would miss out on government-backed support.
Richard Neudegg, director of regulation at Uswitch, praised the leading suppliers for removing confusion. "Households can now confidently sign up with these suppliers for a fixed deal that will effectively save them money twice," he said. "They can secure cheaper rates now during the coldest months of winter, and they’ll see their prices drop even further in April without having to take any further action."
What Happens Next?
The new, reduced rates will officially kick in from April 2025. Customers of the named suppliers do not need to take any action to receive the discount; it will be applied automatically to their bills. The government hopes this direct intervention will ease the financial burden for millions across the country as the new year begins.
