The British government will reduce energy bills by £150 annually, by shifting costs into the tax area and eliminating the ECO program.

The British government, through Finance Minister Rachel Reeves, has announced a significant measure to reduce financial pressure on households by lowering energy bills by an average of £150 per year. This will be achieved by shifting some costs into the area of general taxation and by abolishing the Energy Company Obligation (ECO) program, which requires energy companies to support the insulation of homes for low-income families, a program that will be eliminated in April 2026.

The decision comes in response to warnings from the National Audit Office regarding potential fraud and poor quality of work within the program. However, environmental organizations, such as Greenpeace UK, have criticized the decision, warning that the elimination of the program will leave millions of households in energy poverty, in cold and damp homes. Additionally, the government will shift 75% of the costs of the Renewables Obligation scheme, which funds renewable energy, to general taxation to reduce direct bills.