Households across Britain on price-capped variable tariffs will benefit from cheaper energy bills this spring, thanks to actions taken by the government – putting money in working people’s pockets in a major step forward in tackling the cost of living.
Around 65% of households are subject to standard variable tariffs and immediate changes to the price cap. Ofgem has now confirmed the price cap will fall by 7% from 1 April – £117 per household. Everybody will benefit from Labour’s budget decision to reduce the cost of bills, but new analysis from Newcastle Labour reveals households in Newcastle subject to variable tariffs alone will save an estimated £9,338,712 a year.
After energy bills rocketed under the previous government, average energy bills were lower in 2025 than 2024 in real terms – and now will be even lower in the second quarter of 2026.
This marks another major milestone in the government’s mission to cut the cost of living for the British people. This winter around six million households will have received the £150 Warm Home Discount, following its expansion last year to all eligible households on means-tested benefits.
Government action has also seen the national minimum and living wage increased, free breakfast clubs rolled out, and prescription fees and rail fares frozen – the latter for the first time in 30 years. Inflation has now fallen to a near-year low, following choices made at the Budget.
Publishing the data, Newcastle Labour leader Cllr Karen Kilgour said,
“We know things are still difficult, but Labour is taking action to help Newcastle families with the cost of living. £117 reduction in energy bills is exactly what households in Newcastle need – that’s real change, thanks to decisions taken by this government.
“And it doesn’t stop there. Labour has extended the £150 Warm Homes Discount to 6 million families, boosted the minimum wage, and frozen rail fares and prescription charges.
“We all want to see change happen faster – but slowly but surely Labour is turning this country around.”