Our thoughts on Andy Burnham’s initial announcements
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This morning, new prime minister, Andy Burnham, has announced plans to remove VAT from household electricity bills from 1 October.
The change is expected to see a reduction in the annual Ofgem price cap by around £45, with suppliers passing savings on to customers – meaning a drop in costs of bills anticipated to be around £45 a year for a typical household.
Charities, care homes, and small businesses who qualify for the domestic energy VAT relief and are not registered for VAT, or those eligible for the reduced rate, will also benefit.
We welcome Andy Burnham and his team’s announcement and hope that this early commitment to addressing the cost-of-living crisis is just the first step of many, when it comes to improving the lives of local people.
Families and individuals experiencing poverty often have higher energy bills, as do those who are ill or disabled, and moves to reduce costs in advance of the peak winter-usage period are vital. Reductions to standing charges in addition to the measures outlined could be even more targeted, to bring bills down even further.
We see all too often people who are living in cold, damp houses, unable to afford to put the lights on or switch on the heating. It’s unacceptable for this to be the case in 2026, and we’re keen for Andy Burnham to keep up the momentum and keep people at the heart of the decisions he makes, as pledged in his first speech as prime minister. Everyone deserves dignity, hope, and a safe, secure, warm home.
His commitment to ending rough sleeping is also one we welcome and is one that is possible with the right funding and people working in committed partnerships at local, regional and national levels.
Homelessness is an issue that has a profound impact on the lives and dignity of too many people in our communities in Greater Manchester and Lancashire. Thousands are living in a constant state of flux, in unsafe or unhealthy conditions and, alongside ending rough-sleeping, we also urge the government to commit to addressing the issues that mean many families and individuals are sofa-surfing or living in unsuitable temporary accommodation. With Andy Burnham also talking about increasing numbers of council houses, we also strongly encourage the new government to go even further by investing in even more affordable housing and tackling the wider causes of poverty.
Having served as Mayor of Greater Manchester, Andy Burnham knows very well many of the communities our charity supports and the challenges facing people experiencing poverty, homelessness and disadvantage locally.
We are keen to work with the new government and all partners, seeking to ensure the voices of people experiencing poverty continue to be heard – and most importantly that they’re not just heard, but are also valued and acted upon.
We’ll soon be writing to the prime minister to highlight what needs to change to help local people transform their lives, and we’d love to hear from you. Please get in touch if there’s anything you think we should consider including in our letter. Email: a.taylor@caritassalford.org.uk