Energy Bills to Fall by £117 from April 2026 – Here’s How to Lock in Savings

Energy bills will fall by 7% for millions of households in April, according to the latest announcement by the UK’s energy regulator Ofgem.

From 1 April to 30 June 2026, households using a typical amount of gas and electricity who pay via Direct Debit could save around £117 per year.

That’s because the price cap will fall to £1,641 per year.

The decrease is slightly less compared to the same period in 2025 when energy bills fell by 11% or £208.

The savings also fall just shy of expert forecasts. Analysts at Cornwall Insights predicted that the cap would fall by 8% to £1,620 in April. Saving households £138 per year on average,

It’s important to note that the energy price cap sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use.

That means the price cap doesn’t limit the size of your actual bill. What you’re charged is estimated by the amount of energy you use.

Ofgem sets the cap every three months and it applies to millions of households in England, Scotland and Wales.

The levels for the period 1 July to 30 September will be announced by 27 March 2026.

Why are energy bills falling?
The UK government has introduced several changes that have influenced the cost of energy for households across the nation:

Funding cuts: The UK government revealed that two environmental and social schemes will end or be funded through general taxes from April 2026. This means that customers will save an average of £150.

Warm Home Discount: from April 2026, costs relating to the Warm Home Discount will change. Global energy prices have also gone down by £38.

However, the cost of maintaining and upgrading the UK’s energy network has added an extra £66 per year for each household.

How can you save on energy bills now?

If you’re on a standard variable tariff or your fixed rate tariff is coming up for renewal the following steps can help ensure you lock in a cheaper rate for your energy bills:

Check your tariff: if you’re on a standard variable tariff or your fixed-rate tariff is due to end before January 1, switching onto a fixed-rate tariff can help you cut the cost of your energy.

Pay by Direct Debit: Paying by Direct Debit is usually cheaper because you don’t have to pay admin costs. Currently, 8 million customers pay by standard credit but could save around £136 per year by switching to a Direct Debit payment.

Shop around: price comparison can help you compare lots of energy deals quickly and find the best value. Remember to watch out for exit fees which could make your tariff more expensive if you want to switch again before the deal ends.

Get energy efficient: with winter on the way it’s more important than ever to conserve your energy. Taking steps to insulate your home can help you save on heating costs. While cutting back on energy waste by switching off lights, appliances and technology when they’re not in use can help you save too.

Apply for support: check if you’re eligible for support from the government such as the Warm Home Discount or your energy supplier, to help you afford the cost of heating and powering your home.

Create a budget: making a budget can help you identify other areas in your life to try and save. A budgeting app can help you automate the process and get started on cutting costs.

What happens if I can’t pay my energy bills?
If you’re worried that you won’t be able to pay your energy bills, it’s important to act quickly to get help.

Contact your energy supplier as soon as possible to arrange a payment plan that you can reasonably afford. Customers on a prepayment meter can request emergency credit if they’re unable to top up.

If you’re already struggling with your bills and have fallen into debt, contacting organisations such as StepChange or Citizens Advice can help you access free advice.