Conservative leader Kemi Badenoch has advised Prime Minister Andy Burnham against implementing an energy price cap for individuals receiving benefits this winter. Badenoch warned that the government should not "launch an expensive energy bailout for Benefits Street," citing increasing pressure from the left for new government action to support low-income households facing rising energy costs.
The regulator Ofgem announced a 4 percent increase in its price cap on Thursday, raising the average dual fuel bill to £1,723. Experts anticipate a further 16 percent rise in January, potentially pushing average bills to £1,999, exacerbated by the ongoing conflict in the Middle East impacting UK gas supplies.
Burnham has already introduced a temporary reduction in VAT on electricity bills, providing households with an estimated saving of £45 annually. The Trades Union Congress is advocating for more substantial measures, including a "social tariff" to significantly reduce energy bills for those with the lowest incomes.
Shadow Energy Secretary Andrew Bowie echoed Badenoch's concerns, stating, "The siren call of the left for a Benefits Street bailout is growing louder by the day. But Britain cannot afford to blow even more taxpayers' cash on welfare." The Conservative party asserts that removing the Carbon Tax and renewable energy subsidies from energy bills would lower costs for all families. They also advocate for increased drilling in the North Sea to generate tax revenue and offset energy costs, criticizing Burnham's postponement of decisions on the Jackdaw and Rosebank sites.
Badenoch remarked, "We need to return to common sense on energy. Britain should be drilling our own oil and gas in the North Sea and using the tax revenues to bring down bills. We should also scrap all the Net Zero levies and subsidies that force up the cost of energy bills. Instead, Andy Burnham is tinkering around the edges, and even backtracking on his promise to drill our own oil and gas because he's scared about the Green Party winning a by-election in London. None of this is doing anything to help people facing rising bills this winter."
A spokesperson for the Labour Party responded, "Andy Burnham's core focus is easing the pressure on the cost of living. Over the summer one of his first acts as Prime Minister was to cut taxes on energy bills. Nobody needs lectures from a Tory Party who crashed the economy and let the benefits bill soar. While they snipe from the sidelines, Labour will get on with bearing down on the cost of living and driving good growth in every postcode of Britain."
In recent regional interviews, Badenoch also suggested that Burnham's recent speech implied a potential early election, despite his public statements to the contrary. "All the policies he announced are for after an election, so if he's not calling an election why is he talking about things happening in 2030? He says a lot of things with a smile, but I actually think that he's got very different plans for us and for our country," she stated.