Andy Burnham, the new Labour Party leader set to become Prime Minister on Monday, is reportedly planning a radical energy bill shake-up that could be announced as early as his first day in office. The proposal aims to cut household energy bills by £130 a year and make running a heat pump cheaper than a gas boiler.
Details of the Energy Proposal
The plan, drawn up by the thinktank Nesta, would change the way household gas is charged and remove some policy levies from bills. This would come at a cost of £3.2 billion a year to the taxpayer. The proposal is being analyzed by Burnham's team of allies over the weekend.
Andrew Sissons, the director of Nesta’s sustainable future project, said: “For years, legacy policy costs have been heavily loaded on to electricity bills, making clean heating options artificially expensive. By combining a zero-taxpayer-cost reform of the gas standing charge with these targeted tariff cuts, the government can deliver around £130 a year in immediate financial relief for the majority of UK households, while making clean heating the cheapest option on the market.”
Burnham's Vision for a Better Britain
In his speech on the Downing Street steps on Monday, Burnham will lay out his “vision for a better Britain”, with policies to help with the cost of living announced in his first week. The energy proposal is expected to be a key part of this agenda.
Industry Support for Electricity Cost Cuts
The Nuclear Industry Association and other energy bodies have urged Burnham to cut electricity costs while keeping Britain’s energy transition and infrastructure investment on course. In a letter to Burnham, the organisations highlighted that the sector employs around one in 23 people across the UK and generates more than £260 billion in economic activity.
They stated: “The energy transition will only succeed if it is practical, fair, and felt by the public as a source of better jobs, stronger communities, and lower bills.” They added: “For too many households and businesses, electricity is still too expensive. That is not just an energy issue. It is a cost-of-living, competitiveness, and fairness issue. If we want people and businesses to choose cleaner technologies, electricity must become more affordable.”
