Energy secretary backs Martin Lewis’ call on ‘£150 off bills’

The UK Government backs Martin Lewis’ call to ensure all households, including fixed-tariff customers, receive the upcoming £150 yearly energy bill cut, aiming for fair and equal savings from April 2026.

Urvashi

- Editor

The UK’s Energy Secretary, Ed Miliband, has openly supported Martin Lewis’ request to make sure all homes, including those on fixed-rate tariffs, receive the upcoming £150 yearly cut in energy bills. This follows strong public concern that fixed-tariff customers might be left out of the savings.

The reduction is scheduled to start from April 2026 and will lower the annual cost of energy for typical households in England, Scotland, and Wales. The saving comes mainly because certain long-running scheme costs will be removed from bills.

Martin Lewis had warned that leaving fixed-tariff customers out would be unfair, as many people choose fixed deals to protect themselves from sudden price changes. The government now says it wants every household to benefit equally.

Why Energy Bills Will Fall by £150?

The £150 saving is linked to the end of a few energy policy costs that have been added to bills for many years. One of the biggest changes is the closure of the Energy Company Obligation (ECO) in March 2026. ECO helped fund home insulation and efficiency work, but the cost was passed to customers.

Another major change is a reduction in how much consumers pay toward the Renewables Obligation (RO). This is a scheme that supports renewable power generation. From April 2026, part of its cost will be taken off household bills, leading to a drop for almost all customers.

Together, these changes create an average annual saving of around £150 for typical dual-fuel households.

Why Fixed-Tariff Customers Are So Important?

About 37% of UK households are currently on fixed-term energy tariffs. These tariffs lock in a set price for a certain period and usually do not change until the contract ends. Because of this, many people worried that fixed-rate customers might not get the £150 reduction right away.

Martin Lewis argued strongly that this would not be fair. Many people choose fixed deals for stability, not to miss out on savings. He said that failing to include fixed-tariff customers would damage trust in the system and discourage people from switching suppliers in the future.

The government has now agreed that everyone should benefit, no matter what tariff they are on.

Government Letter to Energy Suppliers

On 28 November 2025, Energy Secretary Ed Miliband sent a formal letter to all major energy suppliers. In this letter, he clearly stated that:

  • All households must receive the full saving
  • Fixed-tariff customers must not be left out
  • Companies should work with the government and the regulator to deliver the change

This letter shows that the government is not leaving the issue to chance. It is directly instructing suppliers to apply the saving fairly.

The decision also aims to rebuild confidence in the energy market, where customers often worry about sudden price rises and unclear billing rules.

Martin Lewis’ Role in the Campaign

Martin Lewis raised the issue immediately after the Autumn Budget announcement. He questioned whether fixed-tariff homes would receive the saving, and asked the government to clarify its plans. During a live interview, Miliband said he was “determined” to make sure fixed customers were not excluded.

Following this, Martin Lewis continued to push publicly, saying he would do everything possible to make sure the saving reached every home. His efforts have now resulted in a clear government commitment and written action.

What does this mean for Households Going Forward?

If suppliers follow the government’s direction, millions of households on fixed deals should see their bills fall from April 2026. This will help many families manage costs during a time of continued financial pressure.

However, customers should keep an eye on their bills once the changes start. Although the government has clearly instructed suppliers, each company must update its systems and tariffs to apply the savings correctly.

This policy change is part of a larger shift in how the UK funds renewable energy and energy-efficiency programs. For now, removing some of these costs from bills will reduce the financial burden on households.

Overall, the Energy Secretary’s support for Martin Lewis’ call is a big step toward fairer billing and greater transparency in the energy sector.

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