Power payments set to fall throughout the UK – however specialists subject future warning

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Your assist makes all of the distinction. Learn extra The huge drop in family vitality prices anticipated in April may very well be short-lived, specialists have warned, as the federal government is urged to make sure that adjustments will final.

Power regulator Ofgem is predicted to announce on Wednesday that its vitality worth cap for April to June will drop by £120 from its present degree. The substantial drop is pushed by the federal government’s transfer to chop vitality payments by scrapping an vitality effectivity programme.

It will “ship a transparent enhance to dwelling requirements”, suppose tank the Decision Basis discovered, including this could “assist to maintain payments under present ranges till at the least 2029”.

A brand new report from the influential unit additionally credited the progressive impact of the measure, discovering the design of the coverage will profit lower-income households probably the most. On account of this, round 1 / 4 of households (24 per cent) will save greater than £200 this yr.

<img src="https://static.independent.co.uk/2026/02/05/00/0276bcf2c68c86b1c26550116bc09277Y29udGVudHNlYXJjaGFwaSwxNzcwMzAzNzk3-2.6637921.jpg" srcset="https://static.independent.co.uk/2026/02/05/00/0276bcf2c68c86b1c26550116bc09277Y29udGVudHNlYXJjaGFwaSwxNzcwMzAzNzk3-2.6637921.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/02/05/00/0276bcf2c68c86b1c26550116bc09277Y29udGVudHNlYXJjaGFwaSwxNzcwMzAzNzk3-2.6637921.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="The massive drop in household energy costs expected in April could be short-lived, experts have warned" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

The huge drop in family vitality prices anticipated in April may very well be short-lived, specialists have warned (PA Archive) The adjustments will even make the standard vitality invoice £200 decrease than in 2024 in actual phrases, researchers discovered, which is a welcome drop after the pressures of the Covid pandemic and value of dwelling disaster.

Nonetheless, they added this may very well be eroded in simply three years. They estimated coverage prices and funding in community infrastructure imply payments might be simply £60 decrease on common than immediately in March 2029, and the tip of the federal government’s low cost scheme a month later will add one other £55.

This implies a “cliff edge” looms, the Decision Basis stated, as the federal government might want to resolve whether or not to permit payments to rise or discover funding to increase the assist. It added ministers shouldn't “wait till the eleventh hour to resolve” and may as a substitute set out a sturdy framework earlier than 2029.

Jonathan Marshal, principal economist on the Decision Basis, stated: “Subsequent week’s vitality worth cap announcement will present a big drop in family payments, largely due to the federal government’s £6.9 billion vitality invoice low cost.

<img src="https://static.independent.co.uk/2026/02/20/07/d77a3586614c099dbe806f0cf5c35a97Y29udGVudHNlYXJjaGFwaSwxNzcxNjU4MzM0-2.83116800.jpg" srcset="https://static.independent.co.uk/2026/02/20/07/d77a3586614c099dbe806f0cf5c35a97Y29udGVudHNlYXJjaGFwaSwxNzcxNjU4MzM0-2.83116800.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/02/20/07/d77a3586614c099dbe806f0cf5c35a97Y29udGVudHNlYXJjaGFwaSwxNzcxNjU4MzM0-2.83116800.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Rachel Reeves announced households will save an average of £150 on energy bills from April through the scrapping of an energy efficiency scheme" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Rachel Reeves introduced households will save a median of £150 on vitality payments from April by means of the scrapping of an vitality effectivity scheme (PA Media) “The coverage is effectively designed. By lowering electrical energy unit charges, it helps the shift in direction of electrification similtaneously delivering financial savings value twice as a lot to the poorest households as to the richest, as a share of spending.

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“Nonetheless, this assist is because of finish in April 2029. The federal government ought to set out a transparent and sturdy framework for deciding which vitality coverage prices are funded by payments and which by means of taxation quickly, to keep away from scrambling for an answer in an election yr.”

A Division of Power Safety and Internet Zero spokesperson stated: “This authorities is delivering on our promise to take a median of £150 of prices off payments from 1 April. Ofgem will set out the ultimate worth cap determine within the ordinary approach subsequent week.