Octopus Energy to pass on Autumn Budget savings to both variable AND fixed customers

The energy supplier announced today that all of its variable and fixed tariffs will be reduced from 1 April 2026 to reflect the change in policy costs.

Octopus Energy is the first supplier to confirm that the savings from Budget will be passed on to fixes, and it's said these will be applied automatically. However, the supplier says further detail on how this work in practice is yet to be decided as it's awaiting additional technical information from the Government.

Martin Lewis: 'I hope all firms follow suit'

Commenting on the announcement on X, Martin has urged other energy suppliers to follow suit. He said:

What was announced in the Budget

In the Autumn Budget, it was announced that from 1 April 2026, households in England, Scotland and Wales will see energy bills cut by '£150 a year' on average due to various green levies paid by consumers being removed from bills.

The Government confirmed that it will end its Energy Company Obligation (ECO) scheme in March 2026, as well as reducing the amount households pay towards the Renewables Obligation (RO) scheme through their energy bills from 1 April 2026.

Together, the Government says these measures will save a household around '£150 a year' on average, though the savings are compared to 'everything else remaining equal'. Roughly 40% of the cost of energy bills depends on the wholesale rate of energy (what energy firms pay for it) and that changes daily; and policy costs change (usually rise) too.

The ECO scheme doesn't apply to households in Northern Ireland, so this saving won't apply here. There is a similar scheme to RO running in Northern Ireland, but it'll be down to the Executive to decide whether to follow the UK Government in partially funding this scheme and therefore passing on the costs to consumers.