Martin Lewis has highlighted in a post on his social media accounts that Eon has joined Octopus and British Gas in saying it will pass on the full 1 April 2026 ‘£150’ cut in energy bills to all customers, including those on fixes.
“This is the £150/yr off average bills from the Budget, coming from shifting some policy costs off energy bills and onto general taxation, and cutting the ECO scheme,” he says.
“The cut to the price cap will be via a 3.5p/kWh (c.13%) reduction in electricity prices and a 0.35p/kWh (c.6%) in gas, if everything else remains equal.”
He adds: “The April price cap was expected to rise, so the actual pound-in-your-pocket cuts will be a little less than this, currently around a 6% reduction in April’s Price Cap over January’s is predicted.”
Eon, Octopus and British Gas have indicated this will be done by simply cutting all customers’ rates, including those on fixes, by this amount on April 1
Martin adds: “The government has told me it is pushing all firms to follow suit, as it should. The key for me, though, is how it will be implemented and making sure it is transparent. I believe a straight cut on all bills on 1 April is the cleanest and best way to do it.”
What is the £150 saving on energy bills promised in the budget?
The Chancellor promised in last month’s Budget that the government would cut average household energy costs by £150 in April by removing certain levies from domestic bills.
Households on standard tariffs following the price cap will get these savings in April 2026, and consumers have been waiting to hear how fixed deals would benefit from similar cuts. The recent supplier announcements have given some clarity, but many others have yet to confirm exactly when these savings will be passed on.
From April, energy bills will be around £150 cheaper than they would have been on average — although some of this benefit will likely be offset by new costs in the price cap.
Households moving off price-cap standard tariffs by taking a fixed deal with the suppliers who have confirmed this change can be confident they will see their units fall twice — once immediately vs the price cap for this winter and again in April as the levies benefit is passed on automatically.
Uswitch.com is urging all remaining suppliers to confirm how and when they plan to pass on savings to fixed deal customers, to offer consumers the clarity they urgently need.
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Richard Neudegg, director of regulation at Uswitch.com, says: “British Gas, E.ON Next and Octopus Energy deserve credit for removing all confusion and confirming that their fixed deal customers will automatically receive the Budget savings in April.
“Households can now confidently sign up with these suppliers for a fixed deal that will effectively save them money twice. They can secure cheaper rates now during the coldest months of winter, and they’ll see their prices drop even further in April without having to take any further action.
“We are now urging all other energy suppliers to publicly confirm how and when their customers will get these savings so more people can confidently get the cheapest energy possible this winter. Households can absolutely beat the price cap and save with a fixed deal, so it’s really important they don’t feel confused just at the time of year when they’re using the most energy.”
Richard adds: “If you’re on a standard tariff, don’t wait for April to save on your energy bills. There are deals available that are £233 below the January price cap, meaning you can save on your heating bills during the coldest months of the year.”