Energy bills set to fall by £150 in 2026 – what to do if you’re struggling

From April 2026, energy bills in England, Scotland, and Wales will drop by about £150 a year on average. This was announced during the Autumn Budget and is largely due to changes to insulation schemes and green energy funding.

Why are bills going down?

Two big changes are behind the fall in energy bills.

Ending insulation schemes

The government will stop the Energy Company Obligation (ECO) and Great British Insulation Scheme in March 2026. These programmes helped people get free or cheaper insulation for their homes but faced problems, so funding will now be targeted differently.

Cutting costs of green energy

Right now, part of your bill pays for renewable energy projects like wind and solar. From April 2026, the government will cover most of these costs for three years. This means cheaper electricity for everyone.

What does this mean for you?

A typical household will save around £150 a year as a result of these changes. Most of the savings will show up on electricity bills. Electricity is set to go down by 3.37p per kilowatt hour while gas will go down by 0.31p per kilowatt hour.

Ofgem will work with energy suppliers to make sure that savings are passed on to customers who are on fixed tariffs too. This means people on both variable and fixed tariffs will benefit from the reduction.

Struggling with energy bills now?

If you’re struggling to pay your energy bills today, there’s plenty of support available. Here are some steps you can take right now:

• Talk to your energy supplier – they can offer payment plans or even access to grants and funds to help with your energy bills if they know you’re facing difficulties
• Check if you’re eligible for benefits – free benefits calculators can help you work out if you’re eligible for government support
• See if you can access the Household Support Fund – contact your council to see if you can get help with essential costs like your energy bills; each council has its own eligibility criteria

Here at thinkmoney, we also have a cost of living hub which offers advice and support on various topics to help if you’re struggling with household bills.