Major UK energy suppliers have started to clarify how households will benefit from a significant £150 cut to bills promised in the Autumn Budget, with some confirming the savings will be applied automatically.
Which Suppliers Have Clarified Their Position?
Industry experts at Uswitch.com report that British Gas, E.ON Next, and Octopus Energy have publicly confirmed their plans. These suppliers have stated that the £150 savings announced by the Chancellor will be automatically applied to all eligible fixed-term energy deals starting in April 2026.
This move is designed to remove confusion and ensure customers on fixed contracts receive the benefit without needing to take any action. However, a number of other energy providers have yet to inform their customers about how and when they intend to pass on these crucial savings.
Understanding the Budget Promise and Its Impact
The pledge was made in the November 2025 Budget, where the government committed to reducing average household energy costs by £150. This will be achieved by removing specific environmental and social levies from domestic bills.
While households on standard variable tariffs, which follow the price cap, will see the reduction in April, there was initial uncertainty about how it would affect those on fixed deals. The recent announcements from the three major suppliers provide welcome clarity for a significant portion of the market.
Richard Neudegg, director of regulation at Uswitch.com, commended the action: “British Gas, E.ON Next and Octopus Energy deserve credit for removing all confusion and confirming that their fixed deal customers will automatically receive the Budget savings in April.”
Opportunity for Dual Savings This Winter
This development presents a notable opportunity for consumers. Households can now confidently switch to a fixed deal with these suppliers and potentially save money twice.
Firstly, they can secure a rate that is currently cheaper than the prevailing price cap during the high-usage winter months. Secondly, they are guaranteed to see a further price drop in April when the levy removal takes effect, all without any additional steps.
Uswitch is urging all remaining energy suppliers to publicly confirm their plans promptly. This transparency is vital to allow all consumers to make informed decisions and secure the best possible deal during the coldest period of the year.
Neudegg added: “If you’re on a standard tariff, don’t wait for April to save on your energy bills. There are deals available that are £233 below the January price cap, meaning you can save on your heating bills during the coldest months.”
It is important to note that while bills will be around £150 cheaper on average than they otherwise would have been, some of this benefit may be offset by other changes within the energy price cap calculation from April.
