Andy Burnham considers radical shake-up to cut energy bills
News Source
•Sat, 18 Jul 2026 10:45:01 GMT
📰 What Happened
Andy Burnham is considering a radical plan to cut household energy bills by £130 a year. The proposal, drawn up by the thinktank Nesta, would change how household gas is charged and remove some policy levies from electricity bills. It would cost the taxpayer £3.2 billion a year but make heat pumps cheaper to run than gas boilers.
The plan would make electricity cheaper relative to gas. This would encourage people to switch to heat pumps, which are cleaner but currently more expensive to run. In his speech as the new Labour leader, Burnham promised to reduce the price of 'essentials.' A cost of living package is expected to be one of his first announcements as Prime Minister.
🔍 The Backstory
UK households have faced some of the highest energy bills in Europe since the 2022 energy crisis. Russia's invasion of Ukraine sent gas prices soaring. While prices have come down, bills remain high because of policy costs added to electricity. For years, green levies have been loaded onto electricity bills, making clean heating look expensive.
The UK has a legal target to reach net-zero carbon emissions by 2050. Heating homes is one of the biggest sources of emissions. Heat pumps are the main alternative to gas boilers, but adoption has been slow due to upfront costs. Burnham's plan would make heat pumps cheaper to run, helping the UK meet climate goals while saving households money.
🎯 Why It Matters
£130 off energy bills would make a real difference to millions of families struggling with the cost of living. It would also speed up the switch to clean heating, which helps fight climate change.
Andy Burnham is considering a radical plan to cut household energy bills by £130 a year. The proposal, drawn up by the thinktank Nesta, would change how household gas is charged and remove some policy levies from electricity bills. It would cost the taxpayer £3.2 billion a year but make heat pumps cheaper to run than gas boilers.
The plan would make electricity cheaper relative to gas. This would encourage people to switch to heat pumps, which are cleaner but currently more expensive to run. In his speech as the new Labour leader, Burnham promised to reduce the price of 'essentials.' A cost of living package is expected to be one of his first announcements as Prime Minister.
UK households have faced some of the highest energy bills in Europe since the 2022 energy crisis. Russia's invasion of Ukraine sent gas prices soaring. While prices have come down, bills remain high because of policy costs added to electricity. For years, green levies have been loaded onto electricity bills, making clean heating look expensive.
The UK has a legal target to reach net-zero carbon emissions by 2050. Heating homes is one of the biggest sources of emissions. Heat pumps are the main alternative to gas boilers, but adoption has been slow due to upfront costs. Burnham's plan would make heat pumps cheaper to run, helping the UK meet climate goals while saving households money.
£130 off energy bills would make a real difference to millions of families struggling with the cost of living. It would also speed up the switch to clean heating, which helps fight climate change.