Energy bills across the UK are set to drop by £120 from April, driven by the government's decision to scrap an energy efficiency programme, according to Ofgem's upcoming price cap announcement. The Resolution Foundation think tank said this will deliver a clear boost to living standards and keep bills below current levels until at least 2029.
The report highlighted that the policy is progressive, with around a quarter of households saving more than £200 this year. The typical household bill will be £200 lower than in 2024 in real terms, providing relief after the pandemic and cost-of-living crisis.
However, the foundation warned that the savings may be short-lived. By March 2029, bills will be only £60 lower on average than today due to policy costs and network infrastructure investment. The end of the government's discount scheme in April 2029 would add another £55, creating a potential cliff edge.
Principal economist Jonathan Marshall urged the government to set out a durable framework before 2029, rather than waiting until the eleventh hour. A Department for Energy Security and Net Zero spokesperson said the government is delivering on its promise to cut £150 off bills and is focused on transitioning to clean homegrown power to reduce costs long-term.
