Annual energy bill to fall by more than £100 in April as government removes policy costs
Average annual energy bill to drop £138 in April to £1,620 due to government removing policy costs.
Annual energy bills for a typical UK dual-fuel household are forecast to fall by £138 to £1,620 in April 2026, according to Cornwall Insight. The 8% decrease follows government measures announced in the November 2025 budget, primarily the removal of the Energy Company Obligation (ECO) scheme and a 75% reduction in renewables obligation costs from consumer bills, which will instead be funded through general taxation. Between January and March 2026, bills had been expected to rise slightly to £1,758 due to policy costs, but the April reduction will make annual bills the lowest since July 2024 and represent the biggest price fall in two years. The official price cap for April will be announced by Ofgem on 25 February 2026. Further declines are expected in July.
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