PM Keir Starmer Vows to Drive Down Cost of Living as Energy Bills Fall by £117 a Year.
London:
Households across United Kingdom are set to benefit from lower energy bills this spring following government action aimed at easing the cost-of-living pressures, as Prime Minister Keir Starmer pledged to “bear down” further on household expenses.
Under changes to the energy price cap announced by the regulator Ofgem, a typical household on a default tariff will see annual bills fall by £117 from April — equivalent to roughly £10 off monthly energy costs. The reduction follows measures introduced in the Budget, which ministers say were made possible by asking the wealthiest in society to contribute more to help fund targeted support.
Government Action to Tackle Affordability
Energy Secretary Ed Miliband said the fall in bills reflects the government’s determination to address what he described as the “number one issue” facing families — affordability.
“This government is keeping our promise to bring down bills for good because we understand that the affordability crisis is the number one issue for people – and we are determined to act,” Miliband said.
He added that the bill reduction would particularly benefit households that rely more heavily on electricity, many of whom are on lower incomes. Suppliers have also confirmed that customers on fixed tariffs will receive comparable savings where applicable.
In the coming weeks, ministers are expected to convene a roundtable with major energy suppliers to ensure savings are fully passed on to all eligible households on domestic contracts.
Long-Term Plan to End High Bills
While welcoming the reduction, ministers acknowledged that energy costs remain elevated compared with levels before Russia’s invasion of Ukraine. Wholesale gas prices for consumers are still around 40% higher than historic norms, continuing to influence overall household bills.
The government says this underlines the need for long-term reform, including its ambition to make Britain a clean energy superpower. Since July 2024, a record number of renewable energy projects have reportedly been secured, alongside significant investment in new nuclear power — described as the largest expansion in a generation.
Central to the strategy is the proposed Warm Homes Plan, billed as the biggest home upgrade scheme in British history. Backed by £15 billion in funding, the initiative aims to upgrade up to five million homes and lift as many as one million households out of fuel poverty by 2030. The scheme prioritises low-income families while offering broader support to working households to improve energy efficiency and reduce bills.
Strengthening the Grid
Part of the energy price cap also reflects investments in modernising and strengthening the electricity network to support economic growth and energy security. Officials argue that reversing decades of underinvestment in grid infrastructure will protect billpayers in the long term.
Government estimates suggest that without planned network reinforcements expected by 2030, electricity system constraint costs could rise by an additional £5 billion — costs that would ultimately be borne by consumers.
Economic Strategy
The Prime Minister said lowering bills is part of a wider economic plan focused on stability, growth and investment across all regions of the country. By combining short-term relief with structural reform, the government aims to create what it describes as a stronger and more secure economy.
As households prepare for reduced bills in April, ministers say further action will follow to shield families from future energy shocks and permanently reduce reliance on volatile fossil fuel markets.
