From April 2026, the UK’s Power Worth Cap will fall by 7%, slicing electrical energy by 3.5p per kWh and fuel by 33p per kWh for households on normal tariffs.
However Martin Lewis says the present Worth Cap continues to be “pants” and warns that the most cost effective mounted offers may undercut it by round 15%.
He spoke to Jonathan Brearley, head of Ofgem, on his Cash Present, who confirmed that suppliers will move on the reductions, however he did affirm that the standing cost is “staying roughly the identical”.
Why Lewis says ‘the value cap continues to be pants’
Martin Lewis has repeatedly criticised the Power Worth Cap for failing to completely defend households.
“Those that use essentially the most vitality will see the most important advantages, however should you can ditch it, you must,” Lewis mentioned on his Martin Lewis Cash Present Reside.
The cap units limits on unit charges and standing fees for normal tariffs, however payments can nonetheless rise if households use extra vitality. Jonathan Brearley added that the standing cost is “staying roughly the identical,” whereas the April discount displays the tip of the ECO4 scheme and adjustments to the Heat House Low cost, which shift some prices from standing fees onto unit charges.
How the most cost effective mounted offers may save extra
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Even with the Worth Cap falling by 7%, mounted tariffs typically provide even larger financial savings. Lewis mentioned: “The 14% most cost-effective fixes out there right now could drop even additional by April, probably 15% under the Worth Cap.”
These offers profit from the identical authorities price cuts that apply to the cap, together with decreased contributions to the Renewables Obligation and the closure of the Power Firm Obligation.
Households on mounted offers can see their payments mechanically fall, making them doubtlessly a better choice than staying on a variable price-capped tariff.
Find out how to change or lock in financial savings
To benefit from the reductions, shoppers ought to verify when their supplier will apply their tariff cuts. Lewis recommends utilizing comparability instruments such because the MoneySavingExpert Low cost Power Membership to seek out the perfect mounted offers based mostly on utilization and area.
“Nearly each family on a typical tariff ought to see their provider move on these financial savings, however the quickest approach to assure a decrease invoice is to maneuver to a hard and fast deal in case your supplier permits it,” Brearley mentioned.
By reviewing tariffs now, Lewis says households can lock within the April reductions and doubtlessly pay lower than the Worth Cap for the remainder of 2026.
