Vitality payments set to fall throughout the UK – however consultants challenge future warning

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Your assist makes all of the distinction. Learn extra Family vitality payments are set to drop by a median £117 from April, regulator Ofgem has confirmed, asserting a seven per cent drop to quarterly value cap.

This determine has lowered to £1,641 a yr for a typical twin gasoline family. The substantial drop is pushed by the federal government’s transfer to chop vitality payments by scrapping an vitality effectivity programme.

However this huge fallcould be short-lived, consultants have warned, as the federal government is urged to make sure that modifications will final.

A brand new report from the Decision Basis has credited the change, saying it's going to “ship a transparent enhance to residing requirements”, and will “assist to maintain payments beneath present ranges till no less than 2029”.

The influential assume tank additionally praised the progressive impact of the measure, discovering the design of the coverage will profit lower-income households essentially 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, consultants have warned (PA Archive) The modifications may 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 price of residing disaster.

Nonetheless, they added this may very well be eroded in simply three years. Researchers estimated coverage prices and funding in community infrastructure imply payments can be simply £60 decrease on common than right now in March 2029, and the top 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 mentioned, 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 mustn't “wait till the eleventh hour to resolve” and will as an alternative set out a sturdy framework earlier than 2029.

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

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<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 way of the scrapping of an vitality effectivity scheme (PA Media) “The coverage is nicely designed. By lowering electrical energy unit charges, it helps the shift in direction of electrification similtaneously delivering financial savings price twice as a lot to the poorest households as to the richest, as a share of spending.

“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 way of taxation quickly, to keep away from scrambling for an answer in an election yr.”

Responding to Decision’s analysis, a Division of Vitality Safety and Internet Zero spokesperson mentioned: “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 value cap determine within the typical approach subsequent week.