Andy Burnham is facing his biggest crisis yet, with energy bills predicted to rise by as much as 30% in January, adding £516.90 to the average household's gas and electricity costs, according to money expert Martin Lewis.
Lewis, who rose to public prominence during the last energy crisis, warned that bills could surge by the staggering figure, based on current prices which are already 4% up on the previous week. The forecast currently predicts a 21% rise, which would still add £361.83 to bills in the New Year.
Critical seven weeks ahead
Lewis hinted at the possible need for government intervention during his appearance on ITV's Good Morning Britain on Thursday. The next seven weeks are critical to the energy price cap assessment period, and if the conflict in the Middle East worsens significantly, prices will spike again, reflected in the next price cap with increases as high as 30%.
Burnham, who came to power on promises to bring bills down, is facing the prospect of hundreds of pounds being added to energy bills less than six months into his tenure as Prime Minister, through no fault of his own.
Options for intervention
Since the start of his term, Burnham introduced a VAT cut on energy bills, a £2 bus fare cap, and a boost for pubs and bars. However, his £45 VAT cut has been absorbed by a £65 rise in energy prices.
The PM could accept that the war has spiked bills, or intervene with a Liz Truss-style cap on the cap, subsidising energy firms' profit margins. He could also rip up Ofgem's price cap rules, such as de-linking the relationship between wholesale gas therms and electricity tariffs, a calculation method that has been criticised for affecting households that don't use gas.
Potential constitutional crisis
Whatever path he takes could be critical, not just for a PM with ambitions to stay the course, but for the entire country, which could teeter from a fresh cost of living crisis to a constitutional one if yet another PM faces the chop in the most tumultuous period in electoral history.
