Incoming Prime Minister Andy Burnham is considering measures to cut energy bills by £130 a year for every UK household, as he prepares to take office on Monday. The new Labour leader aims to tackle the cost-of-living crisis that has contributed to political instability over the past decade.
Proposed Changes to Energy Bills
According to reports from the Guardian, Burnham is reviewing a proposal that would change how household gas is charged and remove certain levies from bills. The plan also seeks to make electricity cheaper relative to gas, making heat pumps more affordable for millions of households. This could reduce costs for hard-up families struggling with stagnant wages and rising expenses.
Addressing the Cost-of-Living Crisis
Burnham has stated his ambition to ensure "essentials" are more affordable following a decade marked by the Covid pandemic and the cost-of-living crisis. Nearly two decades of stagnant wages have left many households with limited disposable income. The proposed reforms aim to provide immediate financial relief while promoting cleaner heating options.
Expert Support for the Plan
Experts say removing "legacy" charges from bills can make a tangible difference. Andrew Sissons, director of Nesta’s sustainable future project, which developed the proposals, told the Guardian: “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.”
