Rachel Reeves has confirmed that all UK households will receive £117 off their energy bills, as she prepares to be replaced as Chancellor by Andy Burnham. The Greater Manchester Mayor, widely expected to succeed Sir Keir Starmer as Prime Minister, is likely to appoint Ed Miliband or Wes Streeting to the Treasury role.
VAT Cuts and Energy Bill Savings
In a government press release on Thursday, June 25, Ms Reeves championed her record, confirming VAT cuts for families and highlighting energy bill savings. She said: “I know the cost of living is a number one concern for families, and it can be even harder over the summer holidays when kids want to do things and money is tight.”
She added: “So we’re making it that bit easier for families to make memories together and enjoy the little treats - while giving a boost to businesses across the UK. This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, and freezing prescriptions and rail fares.”
Economic Context
The £117 saving arrives as households face rising prices due to the new Ofgem price cap. Ms Reeves attributed the support to the government’s economic plan, stating: “We are able do this because we have the right economic plan, resulting in the UK having the fastest growing economy in the G7.”
Labour will soon launch the Great British Summer Savings deal finder – an online tool helping families discover summer offers from businesses in their area.
Leadership Transition
Ms Reeves, who became the first female chancellor after Labour’s landslide election victory in 2024, has been shoring up her position since it became likely Burnham would be the next prime minister. She told the BBC that “no one could doubt” her commitment to Starmer, with whom she has worked side by side since he entered No 10.
She said: “I’ve been by his side for six years now as shadow chancellor and then as chancellor of the exchequer. I know that whoever is prime minister and chancellor in the future will inherit a stronger economy than the one I inherited two years ago.”
