Price cap 1 Oct–31 Dec 2026: £1,723 a year (typical dual fuel, Direct Debit) Electricity 26.32p/kWh · 54.83p/day Gas 7.97p/kWh · 29.68p/day What it means for you →
Big Ben and the Houses of Parliament in London at sunset

Budget watch

Autumn Budget 2026: what to watch for energy bills

The Chancellor delivers the Budget on Wednesday 28 October. Here’s what’s been reported, and what’s already confirmed, so you can separate fact from speculation.

Photo: Peter Kostov on Unsplash

Already confirmed

  • 0% VAT on household electricity in Great Britain until 31 March 2027.
  • Policy costs moved off bills: from April 2026 the Treasury pays three-quarters of the Renewables Obligation cost for households for three years, and ECO is ending.
  • Warm Home Discount: £150 for eligible households this winter.

What has been reported (not confirmed)

Ahead of the Budget, reports suggest the Treasury has been considering more targeted help with energy bills for lower-income households, and that there has been pressure from within government to cut more levies from bills. Treat these as speculation until the Chancellor’s statement. Public finances have also come under pressure from higher energy prices.

What it could mean for you

Targeted support would most likely reach households on means-tested benefits, possibly through existing schemes such as the Warm Home Discount. Changes to levies would show up in the price cap from a future quarter. We’ll update what’s changing on Budget day.

Last updated: 15 October 2026

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