Keir Starmer has been warned that “urgent action” is needed to meet his goal of cutting energy bills by up to £300 by 2030, as millions of UK households face higher costs from April. A report by industry body Energy UK said the government’s clean power plan would ensure lower bills in the next decade, but the effect would not be felt by the end of this decade.
Last month, Starmer reiterated his commitment to the £300 cut, saying he wanted “bills to be low for a prolonged period of time”. However, the average gas and electricity bill for a typical household in Great Britain will rise by £111 from April to £1,849 a year under the price cap, after colder weather and limited renewables drained gas storage in Europe, pushing prices higher.
Energy UK made a series of proposals to lower bills, including encouraging households to use appliances at times of lower demand or when there is excess wind and solar energy. Households with “flexibility equipment” such as a battery, heat pump or electric vehicle could save £115 a year, while others could save smaller amounts by altering habits, like running their dishwasher at night.
The report also called on the government to invest public money to significantly reduce bills and remove policy costs from electricity bills. Moving these costs to gas and funding a small amount from general taxation could cut bills by £400 a year for homes with electric heating, while guaranteeing no households would face increased costs.
On Tuesday, the government announced up to 170,000 homes in England would get energy-saving upgrades, including insulation, double glazing, solar panels and heat pumps, as part of its warm homes plan. Local authorities and social housing providers began allocating £1.8bn in government support, targeted at low-income households and tenants in social housing.
Energy UK’s research came after a separate report accused Ofgem of “unreasonable and unprofessional behaviour”, including contacting workers at energy companies outside working hours. The Department for Energy Security and Net Zero said the government had a plan to make Britain a clean energy superpower, recognising that this is the only way to protect households.
