John Healey faces increasing pressure to introduce additional energy support measures in his upcoming Autumn Budget as household energy bills continue to rise sharply. Labour MPs and cabinet members have expressed concerns ahead of Mr Healey’s Budget announcement on October 28, urging swift action to address the escalating cost of energy as the Ofgem price cap is predicted to surge from the start of the new year.
From Thursday, typical household energy prices are expected to increase by 4%, which amounts to roughly £60 more annually-or about £5 extra each month. This rise will push the average annual gas and electricity bill for a typical household paying by direct debit up to £1,723, assuming this level persists over the year.
However, forecasts suggest even greater increases could be looming in January. According to Cornwall Insight’s latest analysis, the usual annual energy bill could climb as high as £1,999.
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A Labour MP, speaking to the Guardian, highlighted the urgency of expanded support, warning that without it, public morale will suffer. “The problem is the Treasury are just not understanding where the country are,” they said.
General Secretary of the Trades Union Congress (TUC), Paul Nowak, echoed these concerns. He noted, “The Prime Minister has rightly recognised the need to give people breathing space with so many households under the cosh-but this energy bill emergency means the Government must go further and faster at the Budget to protect households.”
Nowak advocated for comprehensive measures to reduce costs, including a social tariff funded by a tax on profits from banks. “That means cutting energy bills for the majority of households with a social tariff, paid for by a tax on banks’ enormous profits,” he added.
Adam Scorer, Chief Executive of National Energy Action, also called for targeted assistance, emphasising the need to support the most vulnerable. “The autumn Budget must deliver additional targeted support for households most at risk this winter, alongside action to tackle energy debt and improve the least energy efficient homes,” he stated.
In response, Energy Secretary Miatta Fahnbulleh acknowledged the financial strain on households, saying, “I know energy price rises weigh heavily on homes across the UK this winter.”
She highlighted recent government measures, including a VAT reduction from October 1 that is expected to save households around £45 annually. This follows the £150 in costs previously removed from bills earlier this year. Fahnbulleh added, “Alongside this, we continue to look at what more we can do to protect families from unaffordable bills, as we drive down bills for good through clean power.”