Energy bills to be cut by £150 a year in cost of living boost for households

Chancellor Rachel Reeves has announced the removal of certain green levies from energy boost in a boost to cash strapped households

Millions of households will save an average £150 on their energy bills next year by removing add-ons.

Chancellor Rachel Reeves confirmed that she was ditching the Tories’ energy company obligation, a home insulation scheme which adds around £43 to the average bill, next April.

Documents from the Office for Budget Responsibility also show another levy the renewables obligation will be partly removed, at least temporarily. It currently adds around £90 to the average annual gas and electricity bills. The temporary removal will cost the Treasury £3billion next year, and then £2billion a year until 2028/29.

However, the Chancellor opted not to ditch the 5