Energy Bills Set to Fall from April as Standing Charge Cuts Confirmed
London, 17 February 2026 – British households are set for a period of financial adjustment as the Government and energy regulators confirm significant changes to utility pricing. Following a period of sustained pressure on household budgets, Chancellor Rachel Reeves has confirmed a cost-of-living boost, while Ofgem prepares to implement a reduction in standing charges and unit rates starting 1 April 2026.
Energy Price Cap and Standing Charge Reductions
The energy price cap is forecast to drop significantly in April. Current projections from the Fuel Bank Foundation suggest a typical household paying by direct debit will see their annual bill fall from £1,758 to approximately £1,641—a reduction of £117. This coincides with a landmark decision to cut standing charges, which is expected to save the average consumer roughly £39 per year across gas and electricity accounts.
While these reductions offer some relief, analysts note that energy costs remain approximately £500 higher than pre-crisis levels. Furthermore, the Government has moved away from previous claims that its 2030 clean energy plan would independently lower bills by £300, focusing instead on immediate rebates and market reforms.
Wider Utility and Council Tax Updates
Beyond energy, other household “bills” are seeing structural changes. Major broadband and mobile providers have pledged to end unexpected mid-contract price hikes under a new Telecoms Consumer Charter. Meanwhile, local authorities, including Wiltshire Council, are urging residents to transition to e-billing for the 2026/27 Council Tax year, with a registration deadline of 23 February.
Key Utility Facts and Projections
The following table outlines the essential components of UK household bills and the confirmed changes for the upcoming quarter.
| Category | Details |
|---|---|
| Energy Price Cap (April 2026) | Forecast to drop to £1,641 for typical usage. |
| Standing Charge Cut | Typical £39 annual reduction starting 1 April 2026. |
| Cost of Living Rebate | £150 boost confirmed by the Chancellor for eligible households. |
| Council Tax Basis | Calculated on property value bands and resident numbers. |
| Green Levies | Comprise 16% of electricity costs and 5.5% of gas costs. |
| VAT on Utilities | Applied to continuous supplies of water, gas, and electricity. |
Frequently Asked Questions
What is included in a standard utility bill?
In the UK, utility bills typically refer to essential services required to maintain a home. This includes electricity, gas, and water. Many providers and financial guides also include Council Tax, broadband, and TV licences under the broader umbrella of household bills.
Are students exempt from paying bills?
Full-time students are generally exempt from Council Tax. However, they remain responsible for usage-based utility bills such as water, gas, and electricity, unless these are specifically included in a “bills-inclusive” rental agreement.
How can I lower my energy costs before April?
While the price cap will not drop until April, consumers are encouraged to compare whole-of-market tariffs. Some fixed-rate deals may offer better value than the projected price cap, particularly for high-usage households. Additionally, residents in areas like Somerset may be eligible for specific council-funded grants to improve home energy efficiency.
What is the new mileage-based electric vehicle tax?
The Government has proposed a mileage-based levy for electric vehicles (EVs). Recent analysis suggests this may disproportionately affect rural drivers who cover greater distances, leading to concerns that the tax could slow the transition to green transport.