At Chijos News, we know that cost-of-living stories are not just statistics, they are real conversations happening in Nigerian and African homes across the UK. From London to Manchester, Birmingham to Glasgow, energy bills remain one of the biggest pressures on diaspora households balancing rent, school fees, remittances and daily expenses. Here’s what the latest Ofgem decision means for you from April.
Millions of British households will see their energy bills fall from April after regulator Ofgem announced a 7 per cent cut to its energy price cap, offering some relief amid ongoing cost-of-living pressures.
The new cap will be set at £1,641 per year for a household with average electricity and gas usage. That represents a £117 drop compared with the January to March level.
For many families across the UK including thousands in the Nigerian and wider African diaspora community, any reduction in monthly bills will be welcomed. However, consumer groups warn that energy costs remain significantly higher than they were before the global energy crisis.
Why Are Energy Bills Falling?
According to Ofgem, the main reason behind the reduction is a change in government policy announced in last year’s budget.
The government decided to shift 75 per cent of the cost of the Renewables Obligation, a scheme that funds renewable power generation away from household bills and into general taxation. In addition, it scrapped a scheme that required energy suppliers to fund insulation and heating upgrades for low-income households.
Together, these measures are expected to remove around £150 a year from the average energy bill.
Tim Jarvis, Director General for Markets at Ofgem, said the changes to policy costs were the key driver behind the latest cut.
Wholesale gas and electricity prices, which form a major part of Ofgem’s price cap calculation, have also fallen in recent months. That has helped bring overall costs down.
However, there is another side to the story.
Why Bills Are Still High
Despite the reduction, energy bills remain around 30 per cent higher than they were in winter 2021/22, before Russia’s invasion of Ukraine triggered a surge in global gas prices.
Network costs are also rising. As the UK upgrades its electricity transmission system — a £24 billion investment — additional levies are being added to household bills. These network costs rose by £66 compared with the previous price cap period, offsetting some of the savings households might have expected.
For families already struggling, the relief may feel modest.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said that even with the price cut, many households remain in cold and damp homes and continue to face unaffordable bills.
For diaspora families in the UK who often support relatives abroad while managing high housing costs at home, energy expenses can quickly strain already tight budgets. While the headline figure of £1,641 per year sounds like progress, it still represents a sharp increase compared with pre-crisis levels.
Government Response
Prime Minister Keir Starmer said the April reduction demonstrates that the government is taking action to ease financial pressure on households.
“I know there is more to do – and my government is pulling every lever to bear down on the cost of living,” he said in a statement.
The energy price cap, introduced in 2019, limits what suppliers can charge customers on standard variable tariffs. It currently covers around two-thirds of UK households.
What This Means for UK Households
From April, most households on standard tariffs should see slightly lower direct debit payments or reduced charges per unit of energy used. However, actual bills will still depend on how much gas and electricity a household consumes.
As temperatures fluctuate and energy usage changes, families are still being encouraged to monitor consumption and explore fixed-rate deals where suitable.
For many Nigerians and Africans living in the UK, energy costs remain one of the clearest indicators of the broader cost-of-living crisis. While April’s price cap reduction brings a measure of relief, the reality is that bills are still far above what households were paying just a few years ago.
At Chijos News, we will continue to track UK energy price changes, government policy decisions and their real impact on diaspora communities trying to navigate life in Britain.
