UK to cut household energy bills by 150 pounds a year

LONDON (Reuters) -Britain will remove 150 pounds ($198.23) a year on average from energy bills by moving some costs to general taxation and cutting a scheme to help pay for home improvements, finance minister Rachel Reeves said on Wednesday.

The Energy Company Obligation which forces energy companies to pay for measures like insulation and new heating systems for low-income households will be scrapped in April 2026, Reeves said.

Without the intervention the price cap, set by regulator Ofgem, was set to reach 1,758 pounds a year in January, around 12% higher than the 1,568 pounds a year level it was at when Labour came into power in July 2024.

($1 = 0.7567 pounds)

(Reporting By Susanna Twidale; editing by Sarah Young)