Autumn Budget 2025: What the energy bill changes could mean for you

The Government says changes coming in April 2026 are aimed at cutting some of the policy costs built into household energy bills. You might have seen the figure “£150 off bills” mentioned.

That sounds like great news. But as with most things in energy, the full story is a bit more complicated.

Let’s break down what’s actually been announced — and what it could mean for your household.

What does the Autumn Budget 2025 mean for energy bills?

Here are the four main changes the Government has announced so far.

1. Policy costs are expected to reduce from April 2026

The Budget outlined plans to move some environmental and social policy costs away from energy bills and into general taxation. These changes — mainly linked to reforms to the Energy Company Obligation (ECO) and the Renewables Obligation — could reduce costs by around £150 per household on average compared to what bills would otherwise have been.

2. The ECO scheme is due to end

The Energy Company Obligation (ECO) — which funds home energy-efficiency upgrades — is expected to end in March 2026. Because ECO is currently funded through energy bills, removing it should reduce some policy-related costs.

3. Most of the Renewables Obligation will move off bills

From April 2026, the Government plans to fund 75% of the Renewables Obligation through taxation instead of energy bills. This change is expected to further reduce the policy costs currently built into bills.

4. What this means for unit rates

Together, these changes are expected to reduce some policy-related costs within unit rates from April. However, wholesale energy prices, network charges and other elements of energy bills can still change, so final prices will depend on wider market conditions.

What will happen to my energy bills in April 2026?

The cuts are excellent news – but they don’t guarantee your bill will automatically shrink next year.

Why? Because lots of other pieces can still move.

Wholesale energy prices can still spike up (or down). Ofgem is also due to update network charges. So April could bring savings… or it could be a bit more complicated.

And here’s the thing: the next four months are winter. Which is when we use the most energy. 

If you’re on a standard variable tariff (set by the Price Cap), these are often the priciest months of the entire year.

Waiting for April’s good news can mean paying through the nose now – sometimes more than the £150 you’re hoping to get later.

Should I switch to UW now?

Short answer: yes.

Long answer: still yes.

Here’s why:

Switching to a low fixed tariff means you start saving immediately, right when your energy use is at its highest.

You’re also protected from any surprise wholesale energy price hikes between now and April 2026.

So you save now and save later. A double win if ever there was one.

To recap:

Switch to a cheaper fixed tariff now = can mean instant winter savings, whatever the weather, that you’ve started benefiting from ahead of changes in April.

Save even more when you switch to UW

Here’s the real life-hack. 

With UW, you don’t just get great value energy. By adding broadband, mobile and insurance, you can unlock even more savings on your energy bills. 

We’ve got things like awarding winning Full Fibre broadband, and insurance insurance. Plus up to £150 homeowner welcome bonus as part of our free Cashback Card trial, just to make you feel at home. 

So instead of watching winter bills creep upward while waiting for April, you could:

• Pay less this winter

• Pay even less from April

• And get extra savings through a UW bundle

It’s a more stable, predictable, and wallet-friendly way to get through winter (and whatever comes after).

Savings based on Ofgem's typical domestic usage.