Millions of households across the UK are set for a welcome financial boost after Octopus Energy confirmed it will slash energy bills from next spring.
Automatic Savings for All Customers
The major supplier has written to its customers to inform them that a typical annual energy bill will fall by around £134 from 1st April 2026. This reduction is a direct result of policy changes announced in the Autumn Budget 2025, which will remove certain costs from energy bills.
In a significant move for consumer transparency, Octopus has guaranteed that the savings will be applied automatically to all customers. This includes those on both variable and fixed tariffs, meaning no one needs to switch deals or contact the supplier to receive the lower rate.
Industry Pressure and Expert Praise
Octopus Energy is now urging other energy firms to follow its lead and ensure the government cuts are passed on transparently to all their customers. The company's founder and CEO, Greg Jackson, stated the firm was "delighted" by the government's action and emphasised that "Octopus customers can rest easy – we’ll do it all automatically."
The decision has been warmly welcomed by consumer champion Martin Lewis. He praised the announcement as "exactly what I've been calling for" and expressed hope that this first move would pressure all other suppliers to follow suit, preventing a "huge lack of transparency" in the market.
A Commitment to Fairer Pricing
This initiative forms part of Octopus Energy's broader commitment to making energy simpler, fairer, and more affordable. By applying the reduction across the board without customer intervention, the company aims to set a new standard for how policy benefits are handled within the industry.
With the change set to take effect at the start of the new tax year, customers of the UK's leading energy supplier can expect to see the impact on their bills from April 2026 onwards.
