UK households on standard variable tariffs are being urged to make an energy bill change before April for a boost of up to £260.

Ofgem has confirmed its new price cap from April 1, which will see the amount most households pay for energy fall by 7%. The regulator’s price cap will drop from its current rate of £1,758 to £1,641 – a reduction of £117, or around £10 per month for the average home using both electricity and gas. The April price cap will be the first to reflect Chancellor Rachel Reeves’ promise made in November last year that £150 would be cut from the average household bill, when she moved 75% of the cost of the Renewables Obligation from household bills onto general taxation and scrapped the Energy Company Obligation (Eco) scheme.

This cut will be achieved through lower household electricity unit rates, rather than a one-off amount. But the £150 figure is an average, and amounts will vary based on household size and the amount of energy used.

Ahead of the April price cap, energy experts are urging households to investigate fixed deals as this allows you to lock in a price which will then remain unchanged for the length of your contract – effectively protecting you from further increases if the price cap rises again.

Ofgem’s price cap only sets the maximum rate per unit and standing charge suppliers can charge customers when they’re not on a fixed tariff, not the total bill. So ultimately, those who use more energy pay more.

But by opting for a fixed deal, households can fix their energy rates and have peace of mind that the price won’t change for the duration of the fix.

According to experts at Uswitch, there are 30 fixed deals available that undercut the current price cap, offering households who switch potential savings of up to £260 on average.

Richard Neudegg, director of regulation at Uswitch.com, said: “This 7% drop in April’s energy price cap is a meaningful cut for household bills, taking default tariffs to their lowest level in almost two years. While energy won’t feel ‘cheap’ for consumers, this is a welcome move in the right direction.

“The main driver of this price drop is the Budget decision to remove some levies from consumer bills. Critically, this Government-led reduction means every household in Britain will see their rates reduced from April, not just those on the typically more expensive price cap default tariff.

“The levy changes are mostly in the electricity unit rates, so the exact reduction in bills will vary per household, based on energy usage. This is not going to be a uniform £150 cut to bills – higher-usage homes will see the biggest savings, while those using less energy may see a more modest change.”

*** Ensure our latest personal finance headlines always appear at the top of your Google Search by making us a Preferred Source. Click here to activate or add us as Preferred Source in your Google search settings. ***

Changes to standing charges will also be within April’s price cap, with households who have a gas supply to see a decrease. But despite these reductions, switching to a fixed tariff can yield significant savings for households.

Mr Neudegg continued: ““Despite this change, households stuck on the price cap should not rest on their laurels. Customers switching to a cheap fixed tariff could see their bills up to 19% cheaper than today’s standard rates once the reduction kicks in, compared with the 7% reduction from simply sticking with the price cap.

“There are currently 30 fixed energy deals on the market that undercut the current price cap. With savings of up to £260 for the average household, taking action is a must – and their rates will get even cheaper from April.”