Seven million families to see £200 cut from energy bills in April

Nearly seven million households are expected to save about £200 on energy bills from April after a government energy bill discount and an anticipated fall in the Ofgem price cap; analysts warn the relief could be reduced over time as costs rise and support ends in April 2029.

Nearly seven million households are expected to see roughly £200 taken off their energy bills in April. The change follows a government energy bill discount worth £6.9 billion over three years and market moves that are expected to push the Ofgem price cap lower. Ofgem is due to announce the next price cap on 25 February. Analysts have examined how the discount will affect bills through 2029. Key facts: - Ofgem will announce the next energy price cap on 25 February. - The government’s energy bill discount will deploy £6.9 billion of public spending over the next three years. - Resolution Foundation analysis finds the discount is worth about £135 for a typical household in 2026–27 and that up to 6.8 million homes could save more than £200. - Based on market expectations, the typical annual energy bill is now expected to be around £1,645 in 2026, about £200 lower than in 2024. - The Resolution Foundation warned that policy and network costs could push bills up between April 2026 and April 2029, and that withdrawing the discount in April 2029 could add roughly £55 to bills. Summary: The immediate effect is lower bills for millions when the new cap and government discount take effect in April, with Ofgem’s announcement on 25 February setting the official cap. Longer term, the Resolution Foundation says rising policy and network costs will gradually erode the relief through 2029 and that ending the discount in April 2029 could lead to a further increase in bills.