Households across Merseyside and the UK will see a drop in energy prices.
Energy prices are set to fall from 1st April 2026. Ofgem, which regulates the energy markets in Great Britain, has announced a 7% fall.
The energy price cap is now set at £1,641 per year for a typical household. This applies to households who use electricity and gas, paying with direct debit, standard credit, prepayment meter, or an ‘Economy 7’ meter.
In today’s Prime Minister’s Questions, PM Kier Starmer said that the reduction has been “Driven by the action that this Labour government has taken”.
He continued by saying: “We promised to cut the cost of living, we are cutting the cost of living”.
Cameron Barry, who lives in Liverpool, welcomed the reduction. She said: “Energy bills have put a huge strain on my monthly budget so reduction could really make everyday living, making other payments and saving, more manageable overall.”
The energy price changes can be confusing. Here’s some answers to common questions.
What is the price cap?
The UK energy price cap limits the price of a unit cost of energy. It does not cap your total energy costs, it caps the amount that suppliers can charge for each unit of gas and electricity. The more energy your household uses, the more you will pay.
For further information on the price changes, visit the Ofgem website for a full breakdown.
How will this effect me?
The 7% drop is the biggest drop since summer 2025. For those who use an average amount of energy, you can expect to see a decrease of around £10 a month.
How long will these prices last?
The price cap level is reviewed every three months, and this current cap will last until 30th June.
Where can I go for advice on my bills in Merseyside?
There are multiple options available if you would like some advice on your energy bills.
Citizens Advice Liverpool can offer you free advice on your energy use.
Liverpool City Region Combined Authority can offer cost of living advice.
YES Energy Solutions can offer free advice on reducing heating costs and improving your energy efficiency.
