Budget 2025’s £150 Energy Bill Cut: Short-Term Relief, Long-Term Uncertainty for UK Electricians
Budget 2025 announced a £150 average reduction in household energy bills from April 2026, achieved by ending the Energy Company Obligation (ECO) scheme and shifting 75% of Renewables Obligation (RO) costs from consumer bills onto general taxation. For households struggling with energy costs, this is welcome relief. The Treasury will fund the RO transfer at £2.3 billion annually, moving the burden from regressive per-unit levies to the broader tax base. But here's the problem: the ECO scheme that's being abolished generated £1.7 billion every year for energy efficiency installations in fuel-poor homes. Insulation, heating upgrades, electrical work that permanently reduces energy demand.