The Labour government has committed to easing the financial strain of rising energy costs by mandating a £150 reduction on annual household energy bills across England, Scotland, and Wales, effective from 1 April 2026. This announcement was made by the Chancellor in last week’s Budget, signaling a major move to support millions of families facing energy cost pressures.
Energy Secretary Ed Miliband has reinforced this initiative, addressing energy companies directly with a firm expectation that this saving must be fully passed on to consumers—including those locked into fixed-term tariffs, which currently make up around 37% of the market.
Writing to energy suppliers, Miliband highlighted the urgency of relieving households amid persistently high energy prices: “Wednesday’s Budget acts decisively to take an average £150 off people’s energy bills from April 2026. We are committed to ensuring every single penny of this intervention benefits consumers directly, regardless of their tariff type.”
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The collaboration between government, the regulator, and energy suppliers has been described as vital in overcoming recent challenges. Miliband emphasized continued joint efforts to guarantee fairness and consumer protection, assuring the public that those savings must reach all customers.
Consumer advocate Martin Lewis echoed these concerns on ITV, questioning whether fixed-rate customers would receive the reductions. Miliband confidently responded that the government is working closely and confidentially with firms to ensure that fixed tariff customers will not be excluded.
Martin Lewis called it “unthinkable” that people on fixed tariffs would miss out, warning potential damage to government credibility, suppliers, and consumer trust. He stressed the importance of passing on savings to maintain confidence in switching and fairness across the market.
The official Budget document clearly states the government’s expectation: “These savings are to be passed on to customers on fixed tariffs from April 2026,” underscoring a strong commitment to comprehensive customer support.