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The Autumn Budget 2025 explained: What It Means for Your Energy Bills

The Autumn Budget brings a small dose of relief to households still recovering from years of volatile energy prices. The headline is simple: some costs are coming off bills. But the story underneath is more complicated.

Here’s what matters.

Will your bill fall?

From 1 April 2026, the government will remove around £134 of policy costs from a typical annual bill.
This is a real saving. Legacy levies will shift into general taxation.

But your final bill depends on the wider system. And parts of that system are moving in the other direction.

The Budget lowers what the bill might have been.
It does not guarantee what the bill will be.

What could push bills back up?

Network upgrades
The grid is being reinforced for electric heat, EVs and renewables. That work is essential, but expensive. Network charges are expected to rise.

Support scheme costs
More funding for low-income energy support means more administrative cost in the system.

Wholesale prices
Global energy prices remain unpredictable. A small shift can ripple into household bills.

Together, these forces mean the Budget helps,  but cannot fully stabilise prices.

What has actually changed?

  • 75% of Renewable Obligation costs removed from bills and put into general tax.
  • ECO insulation scheme ending in April 2026.
  • Warm Homes Plan expanded with an extra £1.5bn.
  • Slight VAT reductions due to lower bills.

These changes pull costs down. Other pressures push them up. The balance will become clear early next year.

EV drivers: a new tax coming

From April 2028, EVs will pay a mileage-based tax:

  • 3p per mile for electric cars
  • 5p per mile for plug-in hybrids

Still cheaper than petrol or diesel.

Heat pump support remains

The £7,500 Boiler Upgrade Scheme stays unchanged.
A rare moment of policy stability.

The simple truth

Bills will likely be lower than they would have been.
But the system is still in flux, and energy costs will remain sensitive to network upgrades and global markets.

The clearer picture arrives in January, when Ofgem updates the price cap.

Until then, think of this Budget as breathing space, not a cure.

Checklist: What Households Can Do Now

  1. Check your tariff
    Compare your current tariff with others. Some fixed deals may now offer better value.
  2. Review your direct debit
    Make sure you’re not overpaying. Many households still are.
  3. Track your usage
    Smart meter or no smart meter, knowing what you use gives you control.
  4. Improve efficiency where possible
    Simple steps (radiator balancing, draught-proofing, boiler settings) can cut costs fast.
  5. If you're struggling, contact your supplier early
    Support schemes, repayment plans and hardship funds exist but you need to ask.
  6. If you heat electrically, watch for changes
    Shifts in policy costs affect electricity more than gas.
  7. Keep an eye on January’s price cap update
    That is when you will know what April’s bill will actually look like.

Get In Touch

If you want help understanding what these Budget changes mean for your home,  or how to prepare for the months ahead , get in touch with us. A clearer, steadier energy plan starts with a conversation.

Contact us today
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