Andy Burnham has said the government is considering further support for households facing cost-of-living pressures, while warning that limited public finances leave little room for measures that would require substantial additional spending.
The comments come as energy suppliers warn that household bills could rise sharply at the beginning of 2027. According to GB News, industry body Energy UK estimates that the typical annual household energy bill could reach about £2,100, bringing renewed attention to the affordability of heating homes through the colder months.
Government Considers Further Help While Warning Over Public Finances
Burnham said ministers were examining a range of possible measures but would have to balance any intervention against the state of government finances. Speaking to BBC Breakfast, he said “every possible measure is being looked at”, while acknowledging that choices would ultimately depend on what the government could afford.
According to BirminghamLive, Burnham said he did not believe warnings of a second significant energy crisis were an overstatement. He described conditions as “very challenging” for people paying for petrol or heating their homes, linking current pressures to instability in the Middle East.
Burnham has already removed VAT from household energy bills. The measure took effect this week and is scheduled to remain in place until April 2027. According to GB News, the VAT change is expected to save the average household about £45 a year.
Several green levies have also been removed from household electricity bills under measures introduced earlier in the year during Sir Keir Starmer’s government. Those changes are expected to reduce the typical annual bill by around £150.
Burnham said he would not support unfunded payments if they risked creating wider economic pressure, including higher mortgage costs. He referred to previous experience of such pressures and said the government would not return to that approach.
Energy Suppliers Call for Early Support for Poorer Households
Energy UK has urged the government to provide additional protection for the poorest households as suppliers prepare for another period of high energy costs.
The organisation estimates that a £2,100 annual bill at the beginning of 2027 would have a similar financial effect on households to a £2,500 bill during the 2022-23 energy crisis, partly because patterns of household energy use have since changed.
During the earlier crisis, the government introduced the Energy Price Guarantee, which limited the typical household bill to £2,500. The scheme was estimated to have cost the Treasury £24.8 billion and was criticised because support was not means-tested.
Dhara Vyas, chief executive of Energy UK, said the government should act before conditions deteriorate further. “We cannot afford to wait for the same scale of crisis before acting again,” she said, arguing that emergency measures introduced at the last minute risk being poorly targeted and more expensive.
According to GB News, seven months of disruption linked to conflict in the Middle East have contributed to falling gas storage levels across Europe. Rebuilding those reserves is expected to take time, raising the possibility that higher energy costs could continue into the spring.
Energy Secretary Miatta Fahnbulleh said the government was continuing to examine further ways to protect families from unaffordable bills while pursuing longer-term changes to the energy system.
