Reeves Pledges £150 Cut to Household Energy Bills from April 2026
Chancellor Rachel Reeves has announced a plan to **cut energy bills for UK households by around £150 a year starting in April 2026 as part of the government’s efforts to ease the cost of living. Reuters+1
Reeves made the pledge in the Autumn Budget, saying the measures will help families struggling with rising energy costs and high household bills. According to the government, this change comes from removing some charges from energy bills and moving them to general taxation, meaning households will no longer pay these costs directly on bills. Wired-Gov
One important element of the plan is scrapping the Energy Company Obligation (ECO) scheme — a policy that currently requires energy companies to pay for home improvements like insulation and heating upgrades. Ending this scheme from April 2026 is expected to lower the overall cost on energy bills. Yahoo Finance
The government also plans to fund most of the Renewables Obligation (RO) — a levy that supports renewable electricity — through general taxation instead of energy bills. This change is another part of the package that will help reduce bills over the next year. Wired-Gov
Reeves told Parliament that taking action on energy costs is a key part of cutting the cost of living and supporting working families. In her budget speech she said this £150 saving would be felt by “every family” from the spring of 2026. GB News
Reaction and Context
Some consumer groups and commentators have welcomed the move, saying it will offer relief to households as the energy price cap is still high despite falling wholesale costs. Others, including influential think tanks, have questioned whether the changes will fully deliver as expected and stressed that underlying energy prices remain influenced by global markets and infrastructure costs. AOL
Energy companies have also started responding to the budget changes — for example, Octopus Energy announced that customers may see bills fall by around £134 next year, reflecting early steps toward the government’s goals. GB News
In simple terms:
From April 2026, the UK government says households will pay about £150 less on energy bills each year. This is because some charges previously added to bills will be paid through taxes instead, and certain schemes will be removed. The aim is to help families facing high energy costs. Reuters