Published On: Wed, Dec 17th, 2025
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Energy firms on the spot after bill cut by Octopus and British Gas | Personal Finance | Finance

Millions of households could miss out on the Chancellor’s promised £150-a-year cut to energy bills unless suppliers urgently clarify how the savings will be passed on, consumer experts warn.

Only British Gas, E.ON Next and Octopus Energy have publicly confirmed that customers on fixed energy deals will automatically receive the Budget savings when they kick in from April.

It is understood that some others plan to do the same, including EDF, Co-op Energy, Ecotricity and Ovo. according to moneysavingexpert.com.

But others have yet to spell out exactly what will happen – or when – leaving households unsure whether they will benefit from the much-trailed support.

The warning comes from Uswitch, which says the lack of clarity risks putting consumers off switching at exactly the time they could save the most. In November’s Budget, the Chancellor pledged to cut average household energy costs by £150 a year by removing certain levies from domestic bills.

Customers on standard variable tariffs, which follow the price cap, will automatically receive the savings when prices change in April 2026. But those locked into fixed deals have been waiting months to hear how – or if – the benefit would be passed on.

Uswitch says the confirmation from three major suppliers is welcome, but insists others must now follow suit.Crucially, households who switch to a fixed deal with one of the confirmed suppliers could save twice – first by locking in cheaper rates now during winter, and again in April when the levy cuts are applied.

From April, energy bills are expected to be around £150 cheaper on average than they otherwise would have been, although some of the gain may be offset by changes to the price cap.

Richard Neudegg, director of regulation at Uswitch.com, said: “British Gas, E.ON Next and Octopus Energy deserve credit for removing all confusion and confirming that their fixed deal customers will automatically receive the Budget savings in April.

“Households can now confidently sign up with these suppliers for a fixed deal that will effectively save them money twice. They can secure cheaper rates now during the coldest months of winter, and they’ll see their prices drop even further in April without having to take any further action.

“We are now urging all other energy suppliers to publicly confirm how and when their customers will get these savings so more people can confidently get the cheapest energy possible this winter.

“Households can absolutely beat the price cap and save with a fixed deal, so it’s really important they don’t feel confused just at the time of year when they’re using the most energy.”

He added: “If you’re on a standard tariff, don’t wait for April to save on your energy bills. There are deals available that are £233 below the January price cap, meaning you can save on your heating bills during the coldest months of the year.”

Cheapest fixed energy deals right now
Supplier Tariff Average bill Savings vs Jan cap

Fuse Energy December 2025 Fixed (13m) £1,525 £233
Outfox Energy Merry Fix-Mas 2025 £1,525 £233
Ecotricity EcoFixed – 1 Year Oct 25* £1,527 £231
E.ON Next Next Fixed 18m v25 £1,554 £204
British Gas Fixed Tariff Dec26 v3 £1,643 £115,

*Source: Uswitch.com. Prices correct at 8am on 17 December 2025.

*Smart meter required.