Government aims to cut energy bills by £200 per household

Measures to slash how much households are paying for gas and electricity could be on the way in the Budget.

Chancellor Rachel Reeves is reportedly considering scrapping VAT from energy bills, which could make a big difference to people struggling with the cost of gas and electricity right now.

But sources indicate that the chancellor wants to go even further on 26 November by slashing green levies - charges added to energy bills to fund renewable energy projects.

Insiders believe this could help households save around £200 a year on their energy bills.

Cost of living a priority for chancellor

The reports come shortly after Reeves took the unusual step of delivering a pre-Budget speech - effectively setting the scene for what’s to come later this month.

In the speech, she acknowledged that food and energy prices are still weighing heavily on people, and suggested that steps will be taken to ease the pressure on hard-pressed households.

“The choices I make in the Budget this month will be focused on getting inflation falling, creating the conditions for interest rate cuts to support economic growth and [improving] the cost of living,” Reeves said.

What can I do if I’m struggling with my bills?

Of course, waiting until the Budget won’t be an option for you if you’re struggling with your bills right now.

But if you’re finding it hard to keep up with payments, there are practical steps you can take, such as:

Contact your supplier

Your energy supplier might be able to offer:

• grants
• payment plans
• advice on managing your account
• emergency credit if you’re on a prepayment meter

It could also be worth joining the Priority Services Register for extra support.

Apply for the household support fund 

You could get extra help with energy costs and other expenses through your local council via the household support fund (HSF).

See what other benefits you could claim

Even if you’re already entitled to support like the warm home discount or winter fuel payments, it’s still worth finding out what else you could be eligible for.

For instance, you might be able to claim:

• housing benefit
• council tax discount
• a free TV licence if you’re over 75 

Give us a call or use our free benefits calculator to find out what you could be entitled to receive.

Cut your energy usage

Making a few small changes to how you use energy can add up to big savings on your energy bill.

For example, you could:

• turn your thermostat down by one degree
• avoid overfilling the kettle before boiling
• bleed your radiators
• take shorter showers
• stop leaving appliances on standby

None of these steps are demanding or require a big lifestyle change, but they could make a huge difference when your energy bill arrives.

Check out our list of 50 smart energy-saving tips to help you get started.