In a significant boost for millions of British households, energy bills have officially dropped as of April 2026. Following the latest Ofgem price cap update, the average annual energy bill has fallen by £117, providing much-needed relief to families across the UK.
Combined with the newly increased National Living Wage, which has risen to £12.71 per hour, many residents are seeing a double financial win this month. Here is how these changes affect your pocket and what you need to do to ensure you’re getting the best deal.
The New April-June Price Cap Explained
From April 1 to June 30, 2026, the energy price cap is set at £1,641 per year for a typical household (paying by Direct Debit). This is a 6.6% decrease compared to the previous quarter.
- Electricity: Average unit rate has dropped to 24.67p per kWh.
- Gas: Average unit rate is now 5.74p per kWh.
Note: The “Price Cap” is not a limit on your total bill; it is a limit on the price per unit. If you use more energy, you will still pay more.
Why Are Bills Falling?
The reduction is largely thanks to the government’s decision to remove “Green Levies” (like the Energy Company Obligation) from customer bills, saving households an average of £150 annually. Additionally, wholesale gas prices have stabilized, allowing Ofgem to lower the rates for everyone on standard variable tariffs.
3 Things You Must Do Now
- Submit a Meter Reading: If you don’t have a smart meter, submit a reading immediately. This ensures your supplier doesn’t charge you at the older, more expensive March rates for April usage.
- Check Your Standing Charges: While unit rates have fallen, standing charges (the daily fee to stay connected) remain high. Compare different suppliers to see who offers the lowest daily fee.
- Verify Your New Wages: If you are a worker, check your latest payslip. The National Living Wage increase to £12.71 means a full-time worker could see a £900 annual boost.
Looking Ahead: Will Prices Rise Again?
Analysts from major suppliers like British Gas and E.ON are already predicting a potential rise in July 2026 due to global market fluctuations. Now is the time to consider “Fixed Tariffs” that stay below the current cap to lock in these lower prices for the rest of the year.