Energy bills set to fall across the UK, but support may end in 2029

Ofgem is expected to lower the energy price cap by about £120 for April–June following a government discount; the Resolution Foundation says the support is due to end in April 2029 and could reduce long-term savings.

Household energy bills in the UK are expected to fall from April after government measures reduced the charges that feed into the price cap. Ofgem is due to set a new energy price cap for April to June, which industry reports expect to be about £120 lower than the current level. The reduction follows a government package including a £6.9 billion discount and changes to an energy efficiency programme. A think tank report welcomed the short-term relief but raised concerns about the duration of that support. Key details: - Ofgem is expected to announce a drop of roughly £120 in the energy price cap for April to June. - The government’s package, including a £6.9 billion discount and adjustments to an efficiency scheme, is identified as the main driver of the reduction. - The Resolution Foundation found the measure will disproportionately benefit lower-income households, with about 24% of households saving more than £200 this year. - The think tank notes the support is scheduled to end in April 2029 and says ministers should set out how future energy policy costs will be funded; Ofgem will confirm the final price cap figure next week. Summary: The expected cut should lower typical bills in the near term and reduce costs compared with 2024 in real terms, with the biggest relative gains for lower-income households. Ofgem will publish the final cap figure next week, and the Resolution Foundation says a longer-term funding approach should be clarified before support concludes in April 2029.