How will the UK Government's Autumn Budget help households save on energy bills?
In the 2025 Autumn budget, the UK Government announced it would end the Energy Company Obligation (ECO) scheme, and that the amount households pay through their energy bills towards the Renewables Obligation (RO) scheme will go down and be funded instead by general taxation. These changes1 are aimed at helping lower energy bills.
From 1st April 2026, prices will go down for all our tariffs, so whether you’re on our standard or our Flexi, Fixed price or Cap Tracker tariffs, your prices will come down. The savings from this change to policy will take effect from 1st April 2026 and continue for the next three years.
For context, the Energy Company Obligation (ECO) scheme was designed to help households with the costs of making energy efficient improvements to their homes with the costs recovered from energy bills. The government has announced that the ECO scheme won’t continue after April 2026, and at the same time the government also announced that 75% of the costs of the Renewables Obligation (RO) scheme, which supports the generation of electricity from eligible renewable sources in the UK, will be funded from general taxation rather than energy bills, for the next 3 years.
Find out more at gov.uk/your-energy-bill
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These reductions are because the UK Government announced that it will end the Energy Company Obligation (ECO) scheme which is currently funded through costs to household energy bills, and that the amount households pay through their energy bills towards the Renewables Obligation (RO) scheme will go down and be funded by general taxation. These reductions will come into effect on 1st April 2026 subject to the government confirming the grant funding requirements.
Last updated: 25 February 2026