Energy bills to fall by £150 after Rachel Reeves makes Budget announcement
- Households are set to receive an average £150 cut in energy bills, following government changes to energy levies.
- The reduction is achieved by moving 75% of older renewables subsidies from electricity bills to general taxation, saving £88, and by scrapping the Energy Company Obligation (ECO) scheme, saving £59.
- Chancellor Rachel Reeves defended the decision to end the ECO scheme, which provided energy efficiency measures, by labelling it a 'failed scheme' that cost households more than it saved for most fuel-poor families.
- Campaigners and industry bodies criticised the scrapping of ECO as a 'devastating blow', arguing it cuts funding for green homes, will cost jobs, and undermines efforts to tackle fuel poverty.
- While welcoming the shift of renewables subsidies, environmental groups urged the Government to outline how the gap left by ECO will be addressed to support low-income households and home decarbonisation.