The new government’s first budget comes as the UK heads into its fourth winter of spiralling energy costs. The latest price cap pushed bills up 10% to an average £1,717 per year - lower than the peak of the crisis, but still 60% more than we were paying four years ago. And while the energy industry raked in £457 billion in profits since 2020, energy debt has risen to record levels. Households across the UK urgently need a reprieve.
So, what do we need to see in Rachel Reeves’ first budget? We’re looking for the Chancellor to do three key things:
- Support households that need it most. With around six million households still in fuel poverty, this is the last opportunity for the government to offer a lifeline. This must be the last winter in which there is merely a quick fix, the budget must set out a vision for the future where protection is in place well before winter comes around.
We’ll be looking out for any mention of a social tariff for energy - a discount energy deal that suppliers would be required to provide for some low-income or vulnerable consumers. But we would also welcome the expansion of existing support mechanisms, like the Warm Home Discount and the Cold Weather Payment.
- Set the scene for the Warm Homes Plan. We know that the only way to permanently bring down bills is through a rapid roll out of energy efficiency measures. This budget must lay the foundation for an ambitious Warm Homes Plan, as promised in Labour’s manifesto, early next year. Our heat-leaking homes are damp, cold and expensive to heat, leaving families suffering from damp, mouldy homes in winter.
Now we need to see the detail - like a timeline for implementing the plan, a commitment that those living in fuel poverty will be the first to benefit, and how heat pumps will be part of it.
- Recognise that the energy crisis is a health crisis. This is the fourth winter that households are facing the stark choice between heating and eating. This takes both a mental and physical toll on people across the UK now facing illnesses ranging from coughs and colds to asthma and pneumonia.
If the government is serious about getting the NHS back on its feet, it must recognise that that means protecting people from cold, damp homes which heighten the risk of serious illness.
After UK fossil fuel giant BP posted quarterly profits of £1.75billion ahead of the budget, Warm This Winter spokesperson Caroline Simpson said:
“Another week and another set of obscene profits. This time it's BP which has pocketed £44.5 billion since the start of the energy crisis.
“That’s why we urge the Chancellor in her budget tomorrow to get tough on profiteers who have made billions milking energy shocks that have left 6.5 million in fuel poverty by clawing back some of that ill-gotten gain to fund a social tariff.
“We know 75% of voters would back such a move, particularly financial help for older and disabled people, and they also back getting companies like BP to pay for it.
“It’s also why we would welcome any moves to set the country on the right course with a programme of investment, reversing over a decade of neglect. From ramping up renewable energy to insulating and ventilating the nation's leaky homes, we can and must upgrade our crumbling infrastructure and bring down everyone's bills for good.”
