What Happened?
In a recent announcement, energy regulator Ofgem confirmed a 7% reduction in the energy price cap, effective from April. This decision follows the Autumn Budget, where Chancellor Rachel Reeves pledged to reduce the average household energy bill by £150. The new energy price cap will set the annual cost for a typical dual fuel household at £1,641, a decrease of £117.
Why It Matters
This reduction is significant as it directly impacts millions of households across the UK, providing relief from high energy costs that have burdened families for an extended period. The change is expected to lower energy bills by approximately £10 per month for the average household using both gas and electricity. Sir Keir Starmer emphasized the importance of this issue, acknowledging that energy bills have been excessively high for too long.
What’s Next?
Households will automatically benefit from these savings starting April 1, with no action required on their part. Energy suppliers will communicate the new rates to customers, ensuring that those on fixed price tariffs also receive the full benefit of the cap reduction. The government continues to explore further measures to alleviate the cost of living for working families.
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