Millions of households across the UK are set for a significant reduction in their energy costs from next spring, with several major suppliers confirming they will pass on upcoming government savings in full.
Automatic Savings for All Customers
Leading the announcements, E.ON Next has stated that all of its customers will see lower bills from April 2026. This follows Chancellor Rachel Reeves' pledge in the Autumn Budget to tackle rising energy costs 'at the source'. The supplier estimates the average household will save approximately £150 a year as a result of the changes.
Crucially, the savings will be applied automatically, meaning customers do not need to switch tariffs or contact their supplier to receive them. This includes those locked into fixed-term deals. An E.ON Next spokesperson was unequivocal: “When these savings start in April, we'll pass them on in full to all our customers. No ifs. No buts. No small print. People are under pressure and they deserve to feel the benefit directly on their bills.”
Industry-Wide Commitment to Lower Bills
E.ON Next is not alone in its commitment. Octopus Energy has also confirmed it will apply the government's energy cost reductions across all its tariffs from April 1. Greg Jackson, CEO and founder of Octopus Energy, said: “Octopus has long called for cuts in policy costs to help bring bills down... These changes will bring a welcome relief to customers, and we'll pass them through on all of our tariffs as soon as they kick in, so no one misses out.”
He emphasised that the process would be automatic for customers and expressed hope that other suppliers would follow suit. British Gas has joined the pledge, with a spokesperson adding: “We welcome the Government's steps to ease energy costs... We'll of course ensure all our customers benefit - including those on fixed-term tariffs.”
What This Means for Households
The coordinated action from these key energy suppliers means a broad swathe of the British public can expect a decrease in their annual energy expenditure from next year. The reductions are a direct result of government policy changes aimed at shifting certain levies away from consumer bills.
For consumers, the key takeaway is that no action is required to secure these savings. The reductions will be seamlessly integrated into bills from the April 2026 implementation date, providing a measure of financial relief amidst ongoing cost-of-living pressures.
