UK energy bills: Small rise in 2026, but relief on the way

Business Nov 27, 2025

Heads up—UK energy bills are set to go up a bit from January 2026, with the typical annual bill hitting £1,758.
But don't stress too much: from April 2026, average household energy bills are predicted to fall by £150 a year, under measures announced in the Budget.
The government is tweaking how green projects are funded to help ease living costs.

What else should you know?

Chancellor Rachel Reeves says funding for older renewable projects will now come from general taxes instead of your energy bill, which means that £150 saving for dual-fuel homes.
Plus, if you're on means-tested benefits, the Warm Homes Discount kicks in next winter and knocks another £150 off your bill—offering some extra breathing room when things get tight.