Chancellor Rachel Reeves has said that families will get £150 off their energy bills from next year. In her Budget speech she said the UK Government will take around £150 off energy bills on average from April next year.
While detail is, thus far, lacking, we do have some more information. Treasury documents state: “Families across the UK are feeling the squeeze of still too high inflation. The Budget delivers a set of measures to remove around £150 of costs on average from household energy bills from April next year.
“Energy costs will be reduced by the ending of the Energy Company Obligation, which is currently funded through bills, and through the government funding 75% of the domestic cost of the legacy Renewables Obligation for three years.” For money-saving tips, sign up to our Money newsletter here
“This is on top of extending the £150 Warm Home Discount to a further 3 million of the poorest households.”
WalesOnline asked chief secretary to the Treasury, James Murray for more details. He said: “We’ve taken measures to remove the Eco scheme which has been adding cost to bills, it’s an ineffective scheme, which has not been delivering the results it should so we’re taking that away, and getting rid of that charge.
“And also moving some of the legacy levies off bills so they’ll be funded in other ways, so we’re able to reduce the levies on bills by £150. That will be feed through into people’s energy bills next year. It will be a £150 reduction on average. It’s an average figure so those families who use more energy could benefit from a greater amount.
“But it means it will be a real help in the coming months for people right across the country”.
In a video on X, Ed Miliband, the energy secretary in the UK Government said: “We’re taking decisive action on energy bills.
“We’re taking £150 costs off energy bills because we know the cost of living crisis is the biggest issue facing families and we’re determined to do what we can. Supporting our long-term mission for home grown , clean power, to lower bills for good.
“We made a commitment at the election to cut bills by up to £300 by 2030, because of the importance of the cost of living crisis, and that is why we are acting.
“This comes on top of the £150 off bills we are providing for 6m families under the Warm Home Discount. Our exposure to international fossil fuel markets is still the main driver of high energy bills.
“That is why clean power is the right answer for our country.”
Money Saving Expert Martin Lewis has said he “suspects this will equate to a 3p or 4p reduction in the unit rate. We need to ensure it comes off all bills”.
The Welsh Government will get £505m extra from the UK Government, it has been announced in the Budget. While there were some announcements that directly impact Wales, decisions which only impact Wales result in a consequential payment.
Chancellor Rachel Reeves has said that will equal £505m for Wales made up of £320m resource funding and £185m capital funding through the operation of the Barnett formula.
The Chancellor’s Budget announced a host of tax changes which will all impact people here in Wales.
Things like changes to personal tax and employer National Insurance contributions thresholds and to salary-sacrificed pensions contributions will impact people in Wales, as will a new mileage-based charge on battery electric and plug-in hybrid cars from April 2028 and gambling tax reforms will impact Wales.