The new Labour government, led by Prime Minister Andy Burnham, has confirmed that households in England will receive six-monthly Cost of Living payments. The scheme targets those living within 500 metres of new or upgraded overhead transmission lines and other eligible infrastructure, offering them reduced electricity bills.
Automatic discounts and application process
Most qualifying households will receive the discount automatically on their electricity bill every six months via their energy supplier, according to government officials. However, some may need to apply, such as those on commercial meters. Ministers said that eligible households will be directly contacted by their energy supplier or Ofgem with further information in the first half of 2027.
The government has also unveiled the first wave of new pylons and grid infrastructure, which will be located in areas where households are eligible for cheaper electricity bills. This is part of a broader strategy to modernise the UK's energy grid and reduce costs for consumers living near new infrastructure.
Pressure over oil and gas fields
The announcement comes as Mr Burnham faces pressure over the Rosebank and Jackdaw oil fields. Sadiq Khan, the Mayor of London, has called on the government to commit to revamped climate action and reduce the UK's reliance on oil and gas, especially as the UK experiences a summer of drought, wildfires, and heatwaves.
Writing in the Guardian, Khan said that Andy Burnham's administration must reaffirm its commitment to net zero and make clear it will continue to reduce the UK's reliance on oil and gas "to get Britain back on track." He described the "terrifying scenes" this summer as evidence that the world is now in an "era of extremes."
Cross-party consensus and expert warnings
Khan noted that the cross-party consensus on climate action in the UK has broken down, with opposition politicians and rightwing populists veering "wildly between denialism and fatalism," but he argued that progress is still possible. "My fear is that – without urgent action – the worst is still to come," Khan said. "If we are to protect our planet and the people who call it home, we must turn the tide on climate denial by preparing for a hotter future and embracing net zero like never before."
Nicholas Stern, a professor at the London School of Economics, also weighed in, stating: "New drilling and decelerating climate action would be bad for growth and for energy security in the UK, and a damaging signal for the world."
The government's cost of living payments are set to begin in the first half of next year, with most households receiving automatic discounts. The scheme is part of a wider effort to address energy costs while the government faces scrutiny over its climate policies.
