Energy customers will be able to save up to £300 annually as the new Labour Government implements one of its key manifesto pledges, Great British Energy (GB Energy).
GB Energy aspires to permanently reduce, address the cost of living crisis and promote warmer homes to cut fuel poverty.
Energy Customers to Save Hundreds with Labour's GB Energy Reform
After an overwhelming triumph at the general election, Sir Keir Starmer has become Labour's first Prime Minister in 14 years.
Following his victory, clients across all energy providers including British Gas, Octopus Energy, EDF, E.On and many more can enjoy lower energy bills.
As outlined in Labour's manifesto, one of the first steps they will take involves the introduction of GB Energy.
GB Energy aims to reduce bills for every household by an approximately £300 a year.
Even though the energy price cap fell by 7% on July 1, many UK households are still struggling with surging energy bill costs, which are expected to soar towards the end of the year.
Labour's new domestically produced, publicly owned clean energy generation company will lead to permanent reductions in bills, enhance energy security and generate employment.
It will create 650,000 new job positions all over the UK through local energy generation.
Great British Energy will be supported in part by a substantial windfall tax on oil and gas giants achieving record profits.
Labour has made numerous pledges which will have an effect on households’ finances – but as it takes office, it will also encounter significant challenges as the cost-of-living continues to exert pressure.
The Government has pledged to launch GB Energy within the first months of the parliament.
To do so, it will be required to pass legislation, which it plans to do through a new Energy Independence Act.
Both Labour and the Conservatives support some type of windfall tax until 2029, seek to decarbonise most or all electricity by 2030, and want to increase solar and offshore wind.
Labour Unveils Ambitious Energy and Economic Reform Agenda
Securing the 326 seats need for a majority in the House of Commons — Starmer stated: “my Government will serve you, politics can be a force for good”, as he spoke to the nation from Downing Street for the first time as Prime Minister.
He said: “Our country has voted decisively for change, for national renewal and a return of politics to public service.
“Our work is urgent and we begin it today.”
In a conversation with Martin Lewis, the money-saving expert, Starmer also stated: “Our plan to switch on Great British Energy will take back control of our destiny and invest in cheap, clean homegrown energy that we control.
“Funded by asking the big oil and gas companies to pay their fair share through a proper windfall tax, so the proceeds can be invested in the future of the country.
“For those struggling to make ends meet, we’ll stop the scandal of expensive pre-payment meters being forced on vulnerable people, and we’ll work with the energy regulator to reduce the standing charges that hit poorer households.
“And we'll launch a Warm Homes Plan – spending an additional £6.6billion to upgrade Britain's homes, cut energy bills and boost jobs across the country.”