£117 Energy Bill Discount Erased as UK Households Face £220 Tax Hit
Tuesday, April 28, 2026
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UK households expecting relief from a £117 energy bill discount are instead facing a financial blow as frozen income tax thresholds force many into higher tax brackets. New analysis by the House of Commons Library reveals that this income tax freeze will effectively reclaim all the savings from the energy discount, potentially leaving families up to £220 worse off over the next year.
The Liberal Democrats warn the average taxpayer will encounter a “tax bombshell” ranging between £160 and £220, with London and the South East bearing the brunt—residents there are expected to face average tax increases of £220 and £200, respectively.