Burnham cuts taxes on energy bills to ease cost-of-living burden

Minister Andy Burnham pledged to offer families struggling with the cost of living more “breathing space”.

On his second day as prime minister, Burnham vowed to support the “poorest households” with the cuts, which will be funded by cancelling his predecessor’s Digital ID programme and result in about £45 of savings per year for a typical household, according to a statement from his Downing Street office.

“For too long, too many people have struggled with the cost of living,” newly appointed Chancellor of the Exchequer John Healey said in a statement. “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”

The 5% cut on VAT, or value added tax, on electricity bills is expected to cost around £850 million in 2026-27.

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