Martin Lewis and the MoneySavingExpert.com (MSE) team have clarified that households across England, Scotland, and Wales can expect their energy bills to drop by approximately £150 annually starting April 1, 2026.
This announcement follows Chancellor Rachel Reeves’ confirmation in the recent Autumn Budget. The reduction stems primarily from the removal of certain green levies, including the Energy Company Obligation (ECO) scheme ending in March 2026 and a decrease in charges related to the Renewables Obligation (RO) scheme.
Martin Lewis emphasized the importance of these savings being reflected in fixed tariff prices. “After discussions with a senior government official, it’s clear that energy suppliers are expected to pass these savings onto customers with fixed-rate plans,” Martin explained.
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He added that this approach aligns with previous practices; during the Energy Price Guarantee, subsidies were effectively transmitted to fixed tariffs. “Removing a cost from bills is the opposite process, and there is no reason it should not be passed on. Failing to do so would undermine trust in the energy market and disincentivize switching suppliers,” Lewis stated firmly. “I am confident this will happen, or I’ll be in revolt.”
The government projects that together, the termination of the ECO scheme and the reduction in RO contributions will save the average dual-fuel household £150 annually from April 2026 onward.
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