Andy Burnham has confirmed that the removal of VAT from energy bills will go ahead, but the new Prime Minister is facing mounting criticism that the measure barely moves the needle for households struggling with the cost of living. According to critics, the average saving works out at only £3 a month, a figure the SNP says is far too little to make any meaningful difference.
VAT cut announced amid rising energy costs
The Labour Prime Minister has introduced the VAT cut as part of his government's response to soaring energy prices. However, the policy will not take effect until October, and even then it will deliver only a modest reduction for most families. The SNP's economy spokeswoman, Kirsty Blackman, highlighted that energy bills are now around £600 higher than what the Labour Party promised during the election campaign.
Blackman described the £3 monthly saving as "barely enough to buy a pack of baked beans or a tin of Spam," and argued that it does little to ease the pressure on household budgets. The cut, while welcome in principle, has been dismissed as symbolic rather than transformative.
SNP urges bolder action on cost of living
In a strongly worded statement, Kirsty Blackman called on the Prime Minister to go "much further and faster" to help families across the UK. She pointed out that many households are living payday-to-payday, with poverty rising by half a million people and UK unemployment reaching a five-year high under the current Labour government.
“Andy Burnham must go much further and faster to help households with the soaring cost of living in the UK, and to reverse the damage done under the Labour government, which has left many people hundreds of pounds worse off.”
The SNP representative also stressed that families in Scotland would derive no meaningful benefit from the changes announced so far, describing the measures as far too small to make a real difference. She concluded by saying that bolder action is needed to ensure people are better off, not hundreds of pounds worse off.
Meeting between Burnham and Swinney
The criticism comes after the first face-to-face meeting between Prime Minister Andy Burnham and Scottish First Minister John Swinney. A Downing Street spokesman confirmed that the issue of another independence referendum was raised but immediately ruled out.
“The Prime Minister stated up front that another referendum on independence was off limits because it would take our focus away from growing the economy and helping families with the cost of living.”
This stance has further fueled tensions between the UK government and the Scottish administration, with the SNP arguing that Westminster is not doing enough to address the economic crisis affecting ordinary people.
Economic impact and political fallout
The £3 a month figure has become a rallying point for opposition parties, who argue that the measure is inadequate given the scale of the cost of living emergency. The VAT cut, which was a key Labour pledge, now appears to be a double-edged sword for Burnham, as the modest savings have been seized upon by political opponents.
While the government maintains that the policy is part of a broader package of support, the SNP's criticism highlights the growing pressure on the Prime Minister to deliver more substantial relief. With poverty and unemployment both on the rise, the political debate looks set to intensify in the coming months.
What happens next?
As October approaches, households across England and Scotland will watch closely to see whether the £3 saving becomes a reality and whether further measures are announced. The SNP has made it clear that it will continue to press the government for more significant action. For now, the VAT cut stands as a modest step, but critics argue it is far from the bold intervention needed to tackle the cost of living crisis.
