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The £134 Energy Boost: 5 Crucial Things Octopus And British Gas Customers Need To Know For April 2026

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The "£134 Energy Boost" is not a myth; it is a confirmed, significant saving set to impact millions of households across the United Kingdom. As of today, December 2025, this major financial relief has been announced by leading suppliers like Octopus Energy and British Gas, promising a substantial cut to the typical household's annual energy bill starting in the spring of next year. This is a direct response to recent government policy changes aimed at restructuring how energy costs are calculated, specifically targeting the removal of certain historical charges and environmental taxes that have long been bundled into electricity bills.

This welcome news arrives as families continue to navigate the complexities of the UK's energy market and the persistent pressure of the Energy Price Cap. The £134 figure represents the average expected annual saving, meaning some customers could see even larger reductions. Understanding the mechanism behind this "boost"—what it is, when it starts, and how it will be delivered—is essential for every customer looking to manage their household budget effectively in 2026 and beyond.

The Complete Breakdown of the £134 Energy Boost

The term "134 energy boost" is a widespread shorthand for a new government-backed policy that will fundamentally change the cost structure of UK electricity bills. It is not a one-off payment from a supplier, but a permanent reduction in the costs that are passed on to consumers. This measure is designed to make electricity cheaper relative to gas, aligning with the UK’s long-term goal of decarbonisation and encouraging the switch to electric-powered solutions like heat pumps and electric vehicles.

1. What Exactly is the £134 "Boost" and When Does it Start?

The £134 figure is an average annual saving that will be applied to the typical household's energy bill. This is a direct result of government policy to remove specific "legacy costs" and "green levies" from electricity bills. This change is not immediate but is scheduled to take effect from April 1, 2026.

  • It is NOT a cash handout: Customers will not receive a single £134 payment into their bank account.
  • It is a Bill Reduction: The value will be delivered through credits, savings, or tariff advantages that reduce the overall cost of your energy usage over time.
  • It is an Average: While £134 is the typical saving, households with higher electricity consumption (such as those with electric vehicles or heat pumps) may see a greater financial benefit.

2. Who is Eligible for the Bill Reduction?

The key piece of information confirmed by major suppliers is the broad eligibility for this saving. Octopus Energy, for example, has confirmed that every single customer will reap the rewards of the energy savings unveiled in the Budget. Similarly, British Gas has committed to passing on the savings. Since this is a structural change to the way costs are calculated, it is expected to apply automatically to all domestic energy customers under the new regulatory framework, regardless of their specific tariff (fixed or variable) or payment method (Direct Debit or prepayment).

The core eligibility factors are:

  • Being a domestic energy customer in the UK.
  • Being supplied by a provider that has committed to passing on the savings, such as Octopus Energy or British Gas.

3. The Policy Driving the Savings: Legacy Costs and Green Levies

To understand why this saving is happening now, one must look at the specific charges being removed. The £134 reduction is primarily achieved by removing certain historical charges and green levies from the electricity component of the bill. These charges were originally implemented to fund older environmental programs and social schemes, but they have been criticised for disproportionately burdening electricity users.

Octopus Energy CEO Greg Jackson has commented on the change, calling it a "positive step in the right direction for customers" and emphasising that making electricity cheaper is crucial for the UK's energy transition. This policy aims to:

  • Lower Electricity Costs: Make electricity more affordable to incentivise the move away from fossil fuels.
  • Restructure the Bill: Reallocate the funding mechanism for environmental and social schemes, ensuring they are not a direct, regressive tax on consumption.
  • Provide Financial Relief: Offer tangible financial assistance to households struggling with high energy bills.

4. How Will the £134 Reduction be Applied to Your Bill?

The process for receiving the benefit is designed to be seamless and automatic, meaning customers do not need to apply or take any specific action.

For most customers, the £134 average saving will be applied as:

  1. Automatic Tariff Reduction: The underlying unit rate for electricity will be lower than it would have been without the policy change. This means every bill you receive from April 2026 onwards will be lower than expected.
  2. Account Credit or Savings: The benefit will be delivered through credits, savings, or tariff advantages that collectively amount to the average saving over the year.

Suppliers like Octopus Energy are already focused on improving the customer experience, with recent updates allowing customers to reclaim their credit balance directly via their online account or mobile app, and faster refund processes. While this is separate from the £134 boost, it shows a trend towards greater transparency and ease of access to customer funds.

5. The Broader Impact on the UK Energy Market and Future Tariffs

The removal of these costs is a foundational change that will have wider implications for the UK energy market. By making electricity cheaper, the government hopes to stimulate investment in electrification technologies. This could lead to a proliferation of new, innovative tariffs from providers like Octopus Energy that further reward high electricity consumption, such as specialised tariffs for EV charging or home battery storage.

The commitment by major players like Octopus and British Gas to pass on these savings sets a precedent for the entire industry. It’s a clear signal that the focus is shifting from managing a crisis to building a more sustainable and affordable energy future. Customers should monitor announcements from their specific supplier in early 2026 for the precise details of how their new tariff rates will reflect this significant £134 average reduction.

The £134 Energy Boost: 5 Crucial Things Octopus and British Gas Customers Need to Know for April 2026
134 energy boost
134 energy boost

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