What is the Labour Party proposing for the energy industry? 

With Prime Minister Rishi Sunak announcing a General Election on July 4th, major political parties are unveiling their proposals before releasing their manifestos. These include policies on the energy sector, plans to keep consumer prices low, efforts to achieve net-zero emissions, and ways to reduce your bills. 

At Energy Advice Helpline, we understand that the energy market can be confusing. That’s why we’re publishing a series of articles to examine what each major UK political party is proposing ahead of the election. First up, let’s explore what the Labour Party energy proposals are.

What is the plan for ‘GB Energy’?

We recently wrote about the Labour Party’s plan to create GB Energy, a public energy company. The aim is to accelerate progress towards net-zero, by partnering with the private sector to increase the dependence on offshore wind power, instead of burning fossil fuels. GB Energy, if created, will have a re-shift the focus onto renewable energy sources, helping the UK to reach the all-important 2050 net-zero target

According to their website, Labour claims that if elected, they will:

  • Save £93 billion for UK households.
  • Deliver 100% clean power by 2030.
  • Cut energy bills for good.
  • Create thousands of good local jobs.
  • Deliver energy security.
  • Make the UK energy independent.
  • Build an energy system for the future, run for the British people.

What else is Labour proposing for UK energy?

Labour Party energy policy may have its flagship with ‘GB Energy’, but that’s not all. If elected, the Party is also proposing to have 100% clean energy by 2030. This target is set 5 years earlier than the current Government target for 2035.

The focus on clean energy is also evident in the proposals to increase taxation for oil and gas companies. A windfall tax is a tax placed on firms that

A windfall tax is used to target firms which benefit from something for which they were not responsible. For example, energy companies have benefitted from huge profits with the soaring demand  after COVID restrictions were lifted, again when Russia invaded Ukraine.

Labour has proposed increasing it to 38%, taking the overall tax rate to 78%. This “proper windfall tax” on oil and gas companies set to raise a proposed £10.8 billion over five years, which Labour say they plan to spend on green investment.

Labour will switch on Great British Energy, a publicly-owned clean power company, to cut annual energy bills for good, paid for by a windfall tax on oil and gas giants, and we’ll insulate millions of homes – making families up to £800 better off a year.

Labour Party, 26/05/2024

What can you do to save on your energy bills?

You can begin your money-saving journey today by applying for government-backed grants and schemes. Applying for these takes as little as 30 seconds with our checker below:

The process of applying is short and simple with Energy Advice Helpline. Whilst our energy bills may not be at the forefront of our minds over the sunny summer months, it’s the perfect time to prepare you home so that you can make savings on your energy bills when winter arrives!

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