Andy Burnham considers radical shake-up to cut energy bills
Summary
Andy Burnham, the new Labour leader, is considering plans to reduce household energy bills by about £130 a year and make electric heat pumps cheaper than gas boilers. The plan involves changing gas charges and removing some extra costs from energy bills, which would be paid for by the government at a cost of £3.2 billion a year.Key Facts
- Burnham aims to lower prices on essential items, including energy costs.
- The proposal comes from the thinktank Nesta and is under review by Burnham’s team.
- The plan would change gas billing by removing the standing charge and some policy levies from bills.
- The government would spend £3.2 billion each year to cover these changes.
- Making electricity cheaper than gas would encourage more people to use heat pumps for heating.
- Nesta recommends clearing unpaid household electricity debts costing £2.7 billion, benefiting around 2 million people.
- The plan could save about £22 a year for the poorest 84% of households.
- Savings also come from cutting taxes and charges on electricity, adding up to the total £130 annual reduction in bills.
- These changes would need funding through the next budget, possibly including tax increases.
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