Energy Costs Will Be Cut by £150
Big news about the Autumn Budget 2026 is here! The government will remove green levy costs from household bills. The average household in the UK can now save about £150 each year. Most of these savings will come directly from the electricity bills.
The UK Autumn Budget brings important changes. These changes will affect how much you pay for gas and electricity over the next few years. For many homes, the Budget means a mix of short-term support on energy bills. It also brings changes to longer-term schemes like ECO. These changes may affect free boiler and insulation funding in future.
Key Changes in Autumn Budget Energy Bill 2026
The government confirmed something important. From April 2026, your typical energy bills will drop by about £150 per year. How? They will shift some policy costs from your bills into general taxation. This move gives you direct help with energy bills right when you need it most. Many households still struggle with high prices.
MoneyWeek reports key figures. From 1 October to 31 December 2025, Ofgem set the energy price cap at about £1,755 per year. This applies to a “typical” dual-fuel household that pays by direct debit. Bills remain high compared with pre-crisis levels. The £150 cut in 2026 will not take prices back to old levels. But it marks a clear step in the right direction.
Average Energy Bill UK – Where We Stand Now?
You need to understand the average energy bill in the UK. This helps you see the Autumn Budget numbers in context. Recent figures show something clear. A typical home on a standard variable tariff pays £1,700 – £1,750 per year for dual fuel. Your exact bill depends on your usage and the price cap dates.
Many households pay different amounts. Your bill depends on your property size, insulation quality, and heating system. The government shows clear examples. A large rural home with poor energy efficiency faces much higher costs. A small flat with low demand pays far less. Schemes that improve home efficiency and heating systems matter greatly. They work alongside direct bill cuts to help you save more.
Government Support for Energy Bills – What’s Changing?
The Autumn Budget offers just one type of support. Many other government schemes can help you too. The government designed these schemes to support low-income households. You can benefit if you receive certain benefits, like:
- Home Heating Discount: For low-income households and pensioners, it gives £150 off electricity bills every winter.
- Fuel Heating Payments: This grant is available on a seasonal payment to help you cope with heating costs. Many pensioners are now eligible under the updated rules. You can check your eligibility here.
- Energy Grant and Support: This support is typically designed for those people who are in energy debt they get the aid from the trusted suppliers to make their living easier.
The Budget also confirmed another change. The government will phase out the current Energy Company Obligation (ECO) around April 2026. This includes related schemes that help pay for insulation and new heating systems. This forms part of the wider change that cuts your bills by £150 per year. The government will still honour existing applications. However, new policies will replace these schemes over time.
How ECO and Free Boiler Schemes Fit Into The Bigger Picture?
ECO-backed schemes like ECO4 still run today. They offer free or heavily funded support. You can get boiler upgrades, first-time central heating, and insulation if you qualify. At Free Boiler Scheme, we focus on helping you access this kind of long-term help with energy bills. We do this by improving the energy efficiency of your home.
The Autumn Budget cuts your bills by about £150 per year. But you can save even more! Upgrade your old, inefficient boiler. Improve your poorly insulated home. These changes save much more over time. High-use households benefit the most. Combine short-term government support with long-term energy-saving measures. This protects your household from future price swings. It gives you the best results.
Practical Approach to Cut Your Energy Bills Now
You can take simple steps to reduce your energy costs right now. You don’t need to wait for the full Autumn Budget changes to take effect.
Check What Help You Can Get
Start by checking if you qualify for:
- Warm Home Discount, Winter Fuel or Winter Heating Payments.
- Local council or supplier hardship funds if you are in energy debt.
- ECO-style home energy improvements. These include free boiler replacement, first-time central heating or insulation. You qualify if your home is hard to heat and you receive qualifying benefits.
Use these schemes together. They can make a real difference to your budget.
Improve Your Home’s Energy Efficiency
We can simply improve our home’s energy efficiency if we:
- Improve the insulation system if possible. Wall insulation reduces heat loss and cuts bills in every season.
- Check the boilers and heating controls.
- The older, inefficient boilers and poor controls can waste a lot of energy compared with modern systems.
- The examination of the usage and unit rates ensures what you are paying under the current price cap.
So, improving the property’s Energy Performance Certificate (EPC) rating is the key. They can make you more likely to qualify for future energy‑efficiency grants and schemes.
What A Household Should Do Next Based on the Autumn Budget
In simple terms, to conclude, the Autumn Budget tells us that:
- The average energy bills will be cut by around £150 a year from April 2026 for typical households, by moving some costs off bills.
- Some existing schemes that support home improvements will end or change, but other forms of help with energy bills and new policies will take their place.
- For households, this means it is still vital to take control of energy use and look at longer‑term improvements. If you have an old boiler, poor insulation or a low EPC rating, exploring free boiler and insulation options through schemes like ECO4 today can protect you, even as the wider system shifts after the Budget.
