Money expert Martin Lewis has revealed the exact date British Gas, EON, EDF and other energy company customers will be handed £150 off their household bills.
As part of Autumn Budget announcements made by Rachel Reeves today, households will be given £150 off energy bills following the scrapping of an eco scheme.
The scheme had been costing households an average of £150 a year through levies on unit rates, but the extra charge will be abolished from gas and electricity bills next year.
Martin Lewis has now taken to Twitter to reveal that the Energy Bill Reduction will officially begin on April 1, 2026. But households could get even more money off bills if they spend more on energy, with £150 being the average saving.
The Chancellor said she was taking action to get energy bills down and cut the cost of living, with an average of £150 cut from the average household bill from next year.
Ms Reeves said she would do this by scrapping the ECO (Energy Company Obligation) scheme introduced by the Conservative government, which she claimed had cost households £1.7 billion a year on their bills.
Now, Martin Lewis has revealed how it will work in practice following conversations with “a senior member of government.”
He said: “Extra details on the ENERGY BILL REDUCTION of #Budget2026 having just spoken to a senior member of govt…
“1. The reduction will start at the 1 April price cap.
2. Everything else being equal it will be equiv to a rough 3.3p reduction in the electricity unit rate and 0.3p reduction in the gas (pre VAT).
3. For someone on typical bills this will equate to roughly £150/yr reduction (clearly use more its bigger, use less its smaller)
4. Part is being done by shifting 75% of the cost of energy levies off bills and into general taxation (exactly as I’ve been calling for as that’s far more progressive) and this is a tenet of what they will be trying to do
5. Part is by scrapping Eco Scheme and putting more funds into Warm Home scheme (though exact details of that are yet to come)
6. I pushed hard on whether this reduction will apply to fixes too I was told “the government has clear expectations this cut will be passed on in full by suppliers” though the details aren’t there yet. There is precedent for this from the Energy Price Guarantee. To not do so would be unthinkable and break the point of a ‘competitive market’.
7. I’m also hopefully in future we may get some costs off the standing charges, but that hasn’t happened yet.”
