UK Energy Bills to Drop £117 Annually from April 2026

Household energy bills in the United Kingdom are forecast to decrease by £117 annually for a typical dual-fuel household starting April 1, 2026, providing modest relief amid ongoing cost-of-living pressures. Energy analysts at Cornwall Insight predict that the regulator Ofgem will lower the default price cap to £1,641, down 7 percent from the current level of £1,758, which applies to standard variable tariffs for gas and electricity.

The anticipated reduction, slightly less than Cornwall Insight's earlier estimate of £138, stems primarily from policy changes outlined in Chancellor Rachel Reeves' autumn budget last November. Those measures include scrapping the Energy Company Obligation scheme and shifting £75 of Renewables Obligation costs from household bills to general taxation, initially projected to save households £150 on average. After accounting for value-added tax and pricing adjustments within the cap's methodology, the net policy impact equates to about £145 in savings, according to the analysts. However, increases in charges for operating and maintaining the country's energy networks have partially offset these gains, contributing to the revised forecast.