Today (25th February), Ofgem has announced that household energy bills will fall by 7% – a direct result of decisions made in the 2025 budget.
Nearly everyone in England, Wales and Scotland will benefit from a cut irrespective of their tariff, although the amounts will vary between households.
For millions of households on variable tariffs governed by the price cap, the drop will be about £10 a month for those using a typical amount of gas and electricity.
For a household governed by Ofgem’s price cap, and using a typical amount of energy, the annual bill will fall by £117.
Last year we promised we’d bring down energy bills, and we meant it. I know this fall in energy prices will make a difference to many. Labour is taking decisive action to tackle the cost of living crisis. We’ve frozen rail fares and prescription charges, expanded free childcare hours, and are rolling out free breakfast clubs nationwide.
Our decisions are putting more money back into working people’s pockets. Today’s announcement is proof of that.