Martin Lewis has given households some welcome financial news ahead of Christmas, confirming that customers of certain energy suppliers are set to save £150 on their bills in 2026.
Chancellor Rachel Reeves announced in the autumn Budget that households will receive an average £150 cut to their energy bills from April 1 next year as the Government scraps a long-running energy efficiency programme that was introduced under the Conservatives. Ms Reeves claimed the “failed” ECO (Energy Company Obligation) scheme brought in by the Tories had cost households £1.7billion per year on their bills, and by scrapping it, the average household will instead see their bill reduced by £150 in 2026.
British Gas, Octopus Energy and EON have now all confirmed plans to pass on savings to all customers in 2026, meaning a reduction in bills for customers.
All three energy firms have said that this process will be done by cutting customers’ rates by £150 on April 1, 2026, including those on fixed tariffs.
Announcing the good news in a post on X (formerly Twitter), Money Saving Expert founder Martin Lewis explained: “EON has joined Octopus and British Gas in saying it will pass on the full 1 April 2026 cut in energy bills to all customers, including those on fixes.
“1. This is the £150 off average bills from the Budget, coming from shifting some policy costs off energy bills and onto general taxation, and cutting the ECO scheme.
“2. The cut to the price cap will be via a 3.5p/kWh (c.13%) reduction in electricity prices and a 0.35p/kWh (c.6%) reduction in gas prices, if everything else remains equal.
“3. Everything else is unlikely to remain equal, as the April price cap was expected to rise, so the actual pound-in-your-pocket cuts will be a little less than this. Currently, around a 6% reduction in April’s Price Cap over January’s is predicted.
“4. EON and Octopus have indicated this will be done by simply cutting all customers’ rates, including those on fixes, by this amount on 1 April. Updated: British Gas has now said it will also do it this way.
“5. The government has told me it is pushing all firms to follow suit, as it should. The key for me, though, is how it will be implemented and making sure it is transparent. I believe a straight cut on all bills on 1 April is the cleanest and best way to do it.”
Greg Jackson, CEO and founder of Octopus Energy, has confirmed the firm will pass on the changes from the Autumn Budget to customers automatically from April 1, while EON has also said 100% of the savings will be automatically given to customers when the Government cuts begin in April 2026.
A spokesperson for E.ON Next said: “When these savings start in April, we’ll pass them on in full to all our customers. No ifs. No buts. No small print. People are under pressure, and they deserve to feel the benefit directly on their bills.”
Similarly, British Gas has now confirmed the energy cost reductions will be passed on to all customers on fixed tariffs once the policy takes effect on April 1.
A British Gas spokesperson added: “We welcome the Government’s steps to ease energy costs as we’ve called for these levies to be moved into general taxation for some time. We’ll, of course, ensure all our customers benefit – including those on fixed-term tariffs.”
