From April 2026, the UK’s Energy Price Cap will fall by 7%, cutting electricity by 3.5p per kWh and gas by 33p per kWh for households on standard tariffs.
But Martin Lewis says the current Price Cap is still “pants” and warns that the cheapest fixed deals could undercut it by around 15%.
He spoke to Jonathan Brearley, head of Ofgem, on his Money Show, who confirmed that suppliers will pass on the reductions, but he did confirm that the standing charge is “staying roughly the same”.
Why Lewis says 'the price cap is still pants'
Martin Lewis has repeatedly criticised the Energy Price Cap for failing to fully protect households.
“Those who use the most energy will see the largest benefits, but if you can ditch it, you should,” Lewis said on his Martin Lewis Money Show Live.
The cap sets limits on unit rates and standing charges for standard tariffs, but bills can still rise if households use more energy. Jonathan Brearley added that the standing charge is “staying roughly the same,” while the April reduction reflects the end of the ECO4 scheme and changes to the Warm Home Discount, which shift some costs from standing charges onto unit rates.
How the cheapest fixed deals could save more
Is now the time to get a fixed energy deal? Read more here: https://t.co/N7Oit5Byut #MartinLewisFebruary 24, 2026
Even with the Price Cap falling by 7%, fixed tariffs often offer even bigger savings. Lewis said: “The 14% cheapest fixes available today may drop even further by April, possibly 15% below the Price Cap.”
These deals benefit from the same government cost cuts that apply to the cap, including reduced contributions to the Renewables Obligation and the closure of the Energy Company Obligation.
Households on fixed deals can see their bills automatically fall, making them potentially a smarter option than staying on a variable price-capped tariff.
How to switch or lock in savings
To make the most of the reductions, consumers should check when their provider will apply their tariff cuts. Lewis recommends using comparison tools such as the MoneySavingExpert Cheap Energy Club to find the best fixed deals based on usage and region.
“Almost every household on a standard tariff should see their supplier pass on these savings, but the fastest way to guarantee a lower bill is to move to a fixed deal if your provider allows it,” Brearley said.
By reviewing tariffs now, Lewis says households can lock in the April reductions and potentially pay less than the Price Cap for the rest of 2026.
