Andy Burnham is considering a proposal to reduce energy bills by £175 for households with lower incomes, following recommendations from the Resolution Foundation. The foundation has outlined a £2 billion emergency plan aimed at helping those facing increased living costs this winter.
According to the report, the proposed scheme would offer annual energy bill discounts of up to £175 to consumers where the highest earner in the household earns £24,000 or less per year. This targeted approach is designed to assist more than 80% of the poorest families, extending support beyond those currently receiving means-tested benefits.
Jonathan Marshall, principal economist at the Resolution Foundation and co-author of the report, emphasised the urgency of the situation: “The government can get ahead of this if it acts now. A targeted energy discount could save eligible households £175 a year and reach more than four-fifths of the poorest families, while expanding support beyond just those on means-tested benefits.”
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He also highlighted long-standing shortcomings, stating, “Successive governments have failed to build a robust system for dealing with household energy prices.”
In response, a spokesperson from the Department for Energy Security and Net Zero remarked, “The energy secretary’s focus is bringing bills down for good. We will tackle the cost of living to make life’s essentials affordable again and bring back hope.”
Prime Minister Burnham plans to spend much of August travelling throughout the country to engage directly with the public, seeking their views on how the Government can improve daily life. He is expected to announce a series of “everyday fixes” aimed at reducing costs, promising to “pull every single lever we can to provide people with some room to breathe on the cost of living.”
In a recent article for The Guardian, he wrote: “I will also be asking people what action they want to see on the cost of living. Because if we want to find the problems that make everyday life harder, we need to listen to the people dealing with them.
“So over the summer, I will be getting out to regions across the country to hear directly from people about the challenges they face and the changes they want to see.
“Westminster has spent too long asking people to wait for life to get better. This government is determined to make it better and to bring back hope.
“My message to people is simple: this will be a cost-of-living government and we will be on your side to prevent you being overcharged, trapped or misled.”