Energy secretary backs Martin Lewis’ call for those on fixed tariffs to benefit from '£150 off bills' from April
The energy secretary, Ed Miliband, has penned a letter to major suppliers calling on them to pass the Budget's '£150 off bills' on to those on fixed tariffs. The letter follows MoneySavingExpert.com founder Martin Lewis' asks on the issue, after he told the energy secretary he would "push very hard" on it.
Households will get '£150 off energy bills' from April 2026
The Chancellor announced in last week's Budget that from 1 April 2026, all homes in England, Scotland and Wales (not Northern Ireland) will see energy bills 'cut by £150 a year' on average.
This is due to the Energy Company Obligation (ECO) scheme ending in March 2026, as well as a reduction to the amount households pay towards the Renewables Obligation (RO) scheme through their bills from 1 April 2026.
Reacting to the announcement at the time, Martin said it would be "unthinkable" if the savings weren't passed on to those on fixed tariffs. He added that not including fixed households in the move would be "destructive to Government, suppliers and consumers, because it would break the whole idea of getting people to switch if they can't trust that these things would continue on".
In the Budget document, the Government stated: "We expect these savings to be passed on to customers on fixed tariffs from April 2026."
Martin Lewis: 'I will be pushing you very hard' to include those on fixes
During the Autumn Budget special of ITV's The Martin Lewis Money Show Live on Thursday 27 November, Martin spoke directly with Ed Miliband, the secretary of state for energy security and net zero. Martin pressed Mr Miliband to include households on fixes in the energy bill cut:
From The Martin Lewis Money Show Live on Thursday 27 November 2025 courtesy of ITV. All rights reserved. Watch the full episode on ITVX.
Below is a transcript of Martin's discussion with Mr Miliband:
Martin Lewis: "The biggest question I'm being asked, is what about people who are on fixed rates next April? Will they see their rate come down too?"
Energy secretary Ed Miliband: "We're determined that people feel the benefit, including those on fixed rates, and we're going to be working with the companies. We've obviously had discussions with them, confidentially, in advance.
"We're determined to make sure that those benefits are passed on to people on fixed rates and we will be making sure that we work with you to pressure the companies to make sure it happens. I think that's what they want to do, but we're going to make sure that they do."
Martin: "And I will be pushing you very hard to make that happen."
Mr Miliband: "And rightly so, as you always do."
Following the discussion, Martin added: "And I will be pushing him, absolutely. Look – it would be unthinkable if this didn't happen. It would bastardise the entire energy market and stop people switching. It's going to happen, it happened during the Energy Price Guarantee. It's not a 100% guarantee."
The energy secretary writes to energy suppliers
On Friday 28 November 2025, Mr Miliband then wrote a letter to energy suppliers, urging them to include consumers on fixed-term tariffs in the upcoming energy bill cuts:
Rt Hon Ed Miliband MP
Secretary of State
Department for Energy Security & Net Zero
55 Whitehall
London
SW1A 2HP
28 November 2025
Ensuring all households benefit from the Budget's action on energy costs
Energy prices remain too high. Wednesday's Budget acts decisively to take an average £150 of costs off people's energy bills from April 2026. This government has made a clear commitment to cut people's bills and help ease the financial pressure on millions of families, as we know energy costs cause such anxiety for many people, and that is why we are acting now.
Thank you for your continued collaboration and commitment to supporting household energy customers across the country. The partnership between government, the regulator and energy suppliers has been vital in navigating the challenges of recent years.
As we move forward, we want to set out our clear expectation that every single penny of our intervention at this Budget is passed onto consumers, including those on existing fixed term tariffs. Around 37% of the market is now on a fixed term tariff and government is clear that they must benefit from this reduction in bills.
We urge you to continue to work with our department to ensure that this happens. This close, joint working will be both welcomed and reassuring for customers, demonstrating our shared commitment to fairness and consumer protection.
Thank you once again for your partnership and for your efforts to ensure that these positive changes reach every household.
Yours sincerely,
Rt Hon Ed Miliband MP
Secretary of State
Martin McCluskey MP
Parliamentary Under-Secretary of State
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