British Gas, Octopus, EON, OVO and EDF customers to get £150 boost

British Gas, Octopus Energy, E.ON, OVO and EDF customers are set to save £150 on their energy bills in 2026. Chancellor Rachel Reeves announced in the Autumn Budget that £150 would be cut from the average household bill from April 1 this year as a long-running energy efficiency programme introduced by the Tories is scrapped. Ms Reeves described the Energy Company Obligation (Eco) scheme introduced under the Conservative government as a "failed" scheme, claiming it had cost households £1.7 billion per year on their bills, and by scrapping it, the average household will instead see their bill reduced by £150 in 2026.

British Gas, Octopus, E.ON, OVO and EDF have now all confirmed plans to pass on savings to all customers in 2026, meaning a reduction in household energy bills. British Gas, Octopus and E.ON have said that this process will be done by cutting customers' rates by £150 on April 1, 2026, including those on fixed tariffs.

Martin Lewis announced the news in a post on X (formerly Twitter) last month, explaining: "Eon has joined Octopus and British Gas in saying it will pass on the full 1 April 2026 cut in energy bills to all customers, including those on fixes.

"1. This is the £150 off average bills from the Budget, coming from shifting some policy costs off energy bills and onto general taxation, and cutting the ECO scheme.

"2. The cut to the price cap will be via a 3.5p/kWh (c.13%) reduction in electricity prices and a 0.35p/kWh (c.6%) reduction in gas prices, if everything else remains equal.

"3. Everything else is unlikely to remain equal, as the April price cap was expected to rise, so the actual pound-in-your-pocket cuts will be a little less than this, currently around a 6% reduction in April's Price Cap over January's is predicted.

"4. Eon and Octopus have indicated this will be done by simply cutting all customers' rates, including those on fixes, by this amount on 1 April. Updated: British Gas has now said it will also do it this way."

Greg Jackson, CEO and Founder of Octopus Energy, has confirmed the firm will pass on the changes from the Autumn Budget to customers automatically from April 1, while E.ON has also said 100% of the savings will be automatically given to customers when the government cuts begin in April 2026.

A spokesperson for E.ON Next said: "When these savings start in April, we'll pass them on in full to all our customers. No ifs. No buts. No small print. People are under pressure and they deserve to feel the benefit directly on their bills."

Similarly, British Gas confirmed the energy cost reductions will be passed onto all customers on fixed tariffs once the policy takes effect on April 1.

A British Gas spokesperson added: "We welcome the Government's steps to ease energy costs as we've called for these levies to be moved into general taxation for some time. We'll of course ensure all our customers benefit - including those on fixed-term tariffs."

As for OVO and EDF, these suppliers have announced plans to pass on "the savings in full" to customers in 2026, but are yet to confirm how and when this will be done.

The government has said it expects the savings to be passed on in full to all customers from April 1, 2026, onwards, including those on existing fixed tariffs.