Energy bills remain a major concern for families across the UK, with many looking to the Government for financial support this winter.
Andy Burnham said he has asked ministers to “to look at whether we can remove standing charges from gas bills” and has already cut VAT from electricity bills.
However, industry experts argue that’s not enough.
Energy UK, the body that represents energy suppliers, said that household bills could rise to £2,100 by January, if action is not taken – up from the current average of £1,723.
So, what measures could Chancellor John Healey announce at the Budget on 28 October to make energy bills more affordable? Here, we speak to experts to find out.
Abolish the standing charge
Burnham said he had asked the Chancellor and Secretary of State for Energy Security and Net Zero, Miatta Fahnbulleh, to remove the standing charges off energy bills.
This would remove the component of households’ dual fuel bills which is charged regardless of how much energy the household is using and means those who use the least energy would benefit the most from the change.
According to energy research centre Nesta, which has proposed abolishing the charge, the typical household would save £27 a year under this system.
VAT removed from energy bills
VAT on household electricity was cut from 5 per cent to zero from 1 October, but only until the end of the 2026-27 financial year on 31 March.
It is saving the typical household £45 a year on their bills.
Targeted support
Some experts have called for the Government to deliver targeted support above the current Warm Home Discount which provides a one-off £150 rebate on energy bills for low-income or pensioner households.
Energy UK said this could come in the form of an increased amount for those eligible or as a debt relief scheme for billpayers – not penalising those who fall behind on bills.
It said households in need should receive £450 a year to effectively address the fuel poverty gap.
The current discount was recently expanded to six million households, with the scheme being extended to winter 2030-31.
It comes as energy bills are predicted to rise, with experts warning there could be a crisis similar to that seen several years ago when the government put in place the Ofgem energy price cap.
Dhara Vyas, the chief executive of Energy UK, said: “We cannot afford to wait for the same scale of crisis before acting again. We must heed the lessons from that time.
“The Government must act now to prevent this situation getting worse and causing even more problems over the longer term. This immediate action must be followed by more permanent measures to tackle the problems of high energy bills and debt which we know will persist otherwise.”
Many energy providers already offer schemes to help customers who are struggling with their bills and should check with them directly if they are eligible for help.
Expand support to people on benefits
Citizens Advice has called for expanded support for people in receipt of child benefit and personal independence payments (PIP).
This, the charity says, will protect households with children and disabled households who desperately need help over the coldest months of the year, but currently fall outside the means-tested benefits criteria.
It said there should be a permanent system that gives struggling households support based on their actual energy needs, adding Labour must deliver on its existing commitments to upgrade leaky, inefficient homes by fully funding the Warm Homes Plan.
Dame Clare Moriarty, chief executive of Citizens Advice, said: “Our advisers are seeing disabled workers weighed down by massive energy debts, and parents who are working but still unable to cover the costs of basics for their family. That’s why we’re calling for a vital two-step approach this Budget.
“The Government has promised to protect living standards but failing to act on both these fronts risks causing immediate, avoidable hardship now and in future winters, for those who can least afford it.”
Make homes more energy-efficient
Burnham could help lower energy bills by offering financial support towards installing loft installation, cavity-wall insulation and solid-wall insulation to stop heat escaping, National Energy Action said.
Matt Copelands, its interim director of policy, said: “No one should be forced to choose between heating their home, putting food on the table and managing their health. Yet that is the reality facing millions of households this winter.”
Funding double-glazing, draught-proofing and other improvements to help homes retain heat are also ways households could be made more energy-efficient.
Copelands added: “Without decisive action, millions of people will face another winter of hardship and the pressure on public services will only grow.”
The Government could do this by speeding up grants for low-income households, like the local grant and warm homes social housing fund as well as helping councils and housing associations upgrade homes that are expensive to heat.
It could mean pensioners living in a poorly insulated home could receive a home assessment followed by publicly funded loft insulation, wall insulation or solar panels, where suitable, without having to pay themselves.
Caroline Abrahams, charity director at Age UK, saying: “No one should be forced to ration heating or cut back on essentials, yet persistently high energy prices mean many older people are doing exactly that.
“We urge the Chancellor to deliver a Budget that protects older people from hardship this winter and beyond.”
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