OCTOPUS Energy has become the first major supplier to confirm it will slash bills for millions of customers following the Autumn Budget.
The energy giant today promised that savings announced by Chancellor Rachel Reeves will be passed directly to households from April 1, 2026.
Octopus said the price cut will apply to everyone – whether you are on a variable tariff or a fixed deal.
Customer’s don’t have to do a single thing to claim the savings either.
The supplier has guaranteed the reduction will be applied automatically, removing the headache of administration.
The move comes after Rachel Reeves vowed to tackle high energy bills “at the source” in her Autumn Budget, scrapping “legacy costs” and green levies that have historically inflated electricity prices.
These policy changes are expected to knock around £134 off the typical yearly energy bill.
Greg Jackson, the founder and chief executive of Octopus Energy, said the company wants to ensure “no one misses out” on the relief.
He said: “Octopus has long called for cuts in policy costs to help bring bills down, so we are delighted to see the government taking action.
“These changes will bring a welcome relief to customers, and we’ll pass them through on all of our tariffs as soon as they kick in, so no one misses out.
“Octopus customers can rest easy – we’ll do it all automatically. We hope other suppliers will follow our lead so everyone can benefit.”
The news will come as a vital lifeline for Brits who have been battered by volatile energy prices.
While this cut is coming in April, households are still bracing for a tough winter.
Regulator Ofgem recently announced a surprise hike to the price cap, meaning the average household bill is set to rise to £1,758 from January 1, 2026.
That January hike equates to roughly 28p extra a month or £35 a year – but experts had warned bills could spiral even higher in the spring due to network upgrades and net zero policies.
However, today’s confirmation from Octopus suggests that the Government’s intervention to scrap green levies will help cushion that blow significantly come April.
Octopus’ move will pile pressure on rival energy firms like British Gas, E.ON, and EDF to make the same pledge.
Usually, when policy costs change, it can be a lottery regarding how quickly suppliers pass on the savings—and customers on “fixed” deals are often left out in the cold because their price is locked in.
By promising to cut costs for fixed tariff customers too, Octopus has set a new standard.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
