How much could I save on energy bills after Budget announcement?

In this week’s Budget, the chancellor announced that various green levies that households currently pay through their energy bills are to be scrapped.

This, she said, means it will take an average of £150 off the costs of household energy bills from April next year.

But what’s the reality beneath this headline figure?

Well, new estimates from the Department for Energy Security and Net Zero suggest that some could actually save considerably more.

Who saves the most?

The amount you could save depends on factors like your living situation and energy needs.

High-use electric storage-heated households

Estimated saving: £442 a year

Gas-heated households with medical equipment and constant heating

Estimated saving: £224 a year

High-demand rural households with poor energy efficiency

Estimated saving: £205 a year

Typical dual-fuel household (two to three-bedroom home, two to three people)

Estimated saving: £134 a year

Low-demand flat or one-bed home

Estimated saving: £88 a year

How was the £150 average worked out?

From 1 April 2026, the government will fund 75% of the renewables obligation through general taxation, which it believes will save £88.

It’s also ending the energy company obligation scheme, which should save £59.

And together, these measures should save £7 in VAT.

That adds up to £154 in savings for the average household.

Even if you’re on a fixed tariff, these savings should be passed on to customers from April.

What help can I get with energy costs?

If you’re struggling to keep up with your energy bills right now, then there are options available.

Firstly, speak to your supplier about any help they can provide, such as grants.

We’re also here to support you.

We can: 

• help you check you’re claiming all the benefits you’re entitled to
• offer budgeting tips
• talk you through the range of debt solutions available

It’s also well worth checking out our guide on what to do about energy arrears.