Andy Burnham, the new MP for Makerfield and Prime Minister-in-waiting, is being urged to introduce an affordable energy guarantee for households as part of bold policy changes to address the cost of living crisis. A Persuasion UK study, shared with the Guardian, indicates that the Labour Party running on a platform of “cost of living populism” could help it win over Reform voters.
Support from Allies
Miatta Fahnbulleh, an MP and ally of Burnham, spoke out in the Guardian about the cost of living. “The cost of living is the most salient issue and this polling shows it’s not only the right thing to do in terms of addressing what people care about but it also makes sense politically for Labour,” she said.
Conservative Energy Plans
Conservative leader Kemi Badenoch earlier this year set out a plan to “get Britain drilling” by opening new oil and gas fields in the North Sea. She claimed that increased tax revenue from oil and gas extraction, plus the removal of VAT on bills and some smaller adjustments, would deliver £200 cuts to household energy bills.
Impact of Iran War
Cabinet minister Darren Jones earlier this year revealed that the government estimates price hikes as a result of the Iran war will be felt for at least eight months after the conflict ends. The chief secretary to the prime minister warned that people will see higher energy, food and flight prices for more than half a year after the war ends “as a consequence of what Donald Trump has done in the Middle East” and said there will be a “long tail from this”.
Burnham's Commitment
In his first major speech since returning as an MP, Burnham said: “I heard on doorsteps in Makerfield how people need a bit extra now to help with rising costs… I will do my very best to deliver it and, while not taking risks with the public finances, will seek to give Britain some breathing space as soon as I can.”
Treasury Work on Package
A Treasury source told The i Paper that work on a package was ongoing, pointing to the £150 cut to the average household energy bill after Reeves overhauled green levies in her last budget. The source added that there was “more you can do in the same space”. With Burnham on course to enter Downing Street as soon as 20 July, energy bills may become one of the first big policy tests of his prospective premiership.
