HOUSEHOLD energy prices will fall by 7 per cent from April, in a move hailed by campaigners as “welcome relief,” but bills remain far above pre-pandemic levels.

Regulator Ofgem’s price cap will drop by £117 — about £10 a month — for the average dual-fuel household. 

However, bills remain £599 — 57 per cent — above winter 2020-21 levels and 5 per cent higher than in July 2024.

The reduction is also lower than the average £150 cut pledged by Chancellor Rachel Reeves in November.

End Fuel Poverty Coalition co-ordinator Simon Francis said that government decisions were “starting to make a difference” and the lowering of the cap would “bring some welcome relief to households who have been under intense pressure from high energy costs.

“But, of course, bills remain hundreds of pounds above pre-crisis levels, and for millions of families in cold, damp homes, this will not feel like the cost-of-living crisis is over.

“If the country is going to tackle energy affordability for good, this must be the start of deeper reform, not the end of the job.”

Mr Francis added that consumers “may need to be cautious about rushing into fixed deals right now” due to changes in unit rates and standing charges still working through the system.

Uplift deputy director Robert Palmer said: “This is welcome news for millions of households, as it shows the UK is starting to turn a corner on energy bills.

“Weaning ourselves off volatile gas is the only real long-term route to affordable energy bills.”

Citizens Advice chief executive Dame Clare Moriarty said: “A fall in energy prices is welcome, but for many people bills remain stubbornly high. 

“For millions of households, this has stopped being a temporary hardship and become an ongoing threat to their financial stability.

“The divide between those who can and cannot keep their homes warm and safe demands urgent action. 

“Too many people, particularly those with disabilities, families with children and renters, remain trapped in cold, damp homes they cannot afford to heat.”

Emily Seymour of consumer rights group Which? said that people with fixed deals will also see bills drop thanks to changes to government scheme funding requirements, though “actual savings will depend on how much energy individual households use.”