The Energy Secretary Ed Miliband has written to energy companies warning all households must benefit from the Budget’s action on energy costs, saving households £150 a year
Ed Miliband has written to energy suppliers to ensure they pass on savings announced in the Budget to consumers, including those on fixed tariffs.
The Chancellor Rachel Reeves announced measures this week that will save millions of households an average £150 on their energy bills next year.
Now the Energy Secretary has written to energy companies warning all households must benefit from the Budget’s action on energy costs.
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In a letter seen by The Sunday Mirror, he said: “Energy prices remain too high. Wednesday’s Budget acts decisively to take an average £150 of costs off people’s energy bills from April 2026.
“This government has made a clear commitment to cut people’s bills and help ease the financial pressure on millions of families, as we know energy costs cause such anxiety for many people, and that is why we are acting now.
“As we move forward, we want to set out our clear expectation that every single penny of our intervention at this Budget is passed onto consumers, including those on existing fixed term tariffs.
“Around 37% of the market is now on a fixed term tariff and government is clear that they must benefit from this reduction in bills.”
Ms Reeves ditched the Tories’ energy company obligation, a home insulation scheme, which is expected to save a typical household £67 a year.
Another levy, the renewables obligation, was partly removed, which would have added around £78 to the average annual gas and electricity bills from April.
Labour sources say the fact that six million families are getting the £150 Warm Homes Discount means the party can claim – at least for those households – that it has met its manifesto pledge to cut energy bills by £300.
Delivering the Budget on Wednesday, the Chancellor said: “Money off bills, and in the pockets of working people. That is my choice.
“Not to neglect Britain’s energy security, like the Tories did. Not to leave working families to bear the brunt of high prices, like the Tories did.
“But to get energy costs down now and in the years to come. That is the Labour choice.”