Martin Lewis Confirms £150 Energy Bill Discount for 2026 – Who Gets It and How

Energy bills have been a serious pressure point for millions across the UK, but there’s some good news ahead. From April 1, 2026, most households will see an average £150 cut to their energy bills—thanks to policy changes announced in the Autumn Budget.

Money-saving expert Martin Lewis has confirmed that major suppliers like British Gas, EON, and Octopus Energy will pass the full discount on to all customers, including those on fixed tariffs. Here’s everything you need to know, broken down clearly.

Update

This £150 average saving comes from the scrapping of the ECO scheme (Energy Company Obligation), a long-running government initiative that placed certain obligations on energy suppliers to help vulnerable households improve energy efficiency.

Now, instead of funding ECO through your energy bills, the Government is moving the cost to general taxation, which means cheaper bills across the board.

Breakdown

Here’s what Martin Lewis has confirmed:

1. The £150 saving is an average, based on a reduction to unit rates for electricity and gas.
2. The discount will appear in the April 2026 price cap, but suppliers will also pass it on to fixed tariff customers, even though they aren’t covered by the cap.
3. The price cut will come in the form of:
   • 3.5p/kWh off electricity (roughly 13%)
   • 0.35p/kWh off gas (roughly 6%)

These numbers might sound small, but they add up over time—and for a typical household, it’s around £150 a year in savings.

Suppliers

As of now, British Gas, Octopus, and EON have confirmed they will cut all customer rates on April 1, 2026—whether you’re on a fixed or variable tariff.

Martin Lewis wrote on X:

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“EON has joined Octopus and British Gas in saying it will pass on the full April 1 cut in energy bills to all customers, including those on fixes.”

He called this a “straight cut on all bills”, which he says is the clearest and fairest way to roll out the discount.

Tariffs

Let’s quickly clear up the difference between fixed and variable tariffs, so you know how this affects you:

Tariff Type	What It Means	Affected by Discount?
Fixed Tariff	Rates locked in for 12+ months	Yes
Variable Tariff	Rates change with the market (Ofgem price cap)	Yes

According to Ofgem, around 21 million customers are on fixed tariffs, and about 34 million are on standard variable tariffs. So this move impacts most households.

Transparency

Martin Lewis also stressed that transparency is key. While the energy price cap may fall, new charges may sneak onto bills in future. So the net savings might not be exactly £150 for everyone, but the change is still a major step in the right direction.

In short:

• Everyone should get a cut.
• It should show clearly on your bill from April.
• Fixed tariff customers will benefit too.
• The actual saving may be slightly lower, depending on other changes in the energy market.

Industry

Ned Hammond from Energy UK said the Budget decision was “very welcome” and suppliers have every reason to pass the savings on, especially as they compete with each other through their fixed deals.

However, he also warned that new costs may be added to bills over the coming months. So while the ECO scheme is being removed from your bill, other schemes might take its place.

Still, this £150 discount is a clear sign of relief, and thanks to public pressure and voices like Martin Lewis, the government and suppliers are handling it with more transparency than usual.

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