February 2026 price cap sees bills fall: Uswitch expert view

The price cap will fall from £1,758 to £1,641 for the period from 1 April to 30 June. This 7% drop is mainly due to government intervention on energy bills as part of the 2025 autumn budget, where green levies have been removed from bills and put into general taxation instead. This results in an average reduction of £150, although, as Uswitch’s Richard Neudegg says, this won’t be a “uniform £150 cut to bills”.

What’s the Uswitch view?

Richard Neudegg, director of regulation at Uswitch.com, said: “This 7% drop in April’s energy price cap is a meaningful cut for household bills, taking default tariffs to their lowest level in almost two years. While energy won’t feel ‘cheap’ for consumers, this is a welcome move in the right direction. 

“The main driver of this price drop is the Budget decision to remove some levies from consumer bills. 

“Critically, this Government-led reduction means every household in Britain will see their rates reduced from April, not just those on the typically more expensive price cap default tariff. 

How will the reduction actually impact customers’ bills?

Neudegg continues: “The levy changes are mostly in the electricity unit rates, so the exact reduction in bills will vary per household, based on energy usage. This is not going to be a uniform £150 cut to bills - higher-usage homes will see the biggest savings, while those using less energy may see a more modest change.

“Within the price cap, there will also be changes in standing charges - those households with gas supply will see a decrease. Standing charges overall remain a frustration point for many consumers, making up around 19% of the average household’s bill.

So how should customers react to this price cap update?

The advice from Neudegg is simple: “Despite this change, households stuck on the price cap should not rest on their laurels. Customers switching to a cheap fixed tariff could see their bills up to 19% cheaper than today’s standard rates once the reduction kicks in, compared with the 7% reduction from simply sticking with the price cap.

“There are currently 30 fixed energy deals on the market that undercut the current price cap. With savings of up to £260 for the average household, taking action is a must - and their rates will get even cheaper from April.”