Finance
UK to cut household energy bills by 150 pounds a year
Published by Global Banking & Finance Review®
Posted on November 26, 2025
1 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 26, 2025
1 min readLast updated: January 20, 2026
The UK will cut household energy bills by £150 annually by moving costs to taxation and ending the Energy Company Obligation in 2026.
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)
The main topic is the UK's plan to reduce household energy bills by £150 a year by shifting costs to general taxation and ending the Energy Company Obligation.
The UK will reduce energy bills by moving some costs to general taxation and scrapping the Energy Company Obligation in 2026.
The changes were announced by finance minister Rachel Reeves.
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