Annual Energy Bill to Fall by More Than £100 in April as Government Removes Policy Costs
Cornwall Insight forecasts an April price-cap fall of £138 for a typical dual-fuel household, reducing the annual bill to £1,620, an 8% decrease. If realised, this would be the lowest annual bill since July 2024 and represent the biggest annual fall in two years.
The forecast decline is attributed to government budget measures that remove policy costs from energy bills and fund them via general taxation. Specifically, the Energy Company Obligation (ECO) scheme has been scrapped, and about 75% of renewables obligation costs will be removed from consumer bills and instead funded by general taxation.
Chancellor Rachel Reeves stated that the government would cut levies to reduce bills by about £150. Additionally, the anticipated rise in national grid costs is expected to be lower than initially thought, with further declines forecast for July by Cornwall Insight.
Between January and March 2026, the typical annual dual-fuel bill is forecast to be £1,758, slightly up from the current £1,755 cap. The official April price-cap announcement is scheduled for 25 February.
