Keir Starmer’s ambitious pledge to cut energy bills by up to £300 by 2030 is facing serious challenges, according to a new report from industry body Energy UK. With energy costs set to rise in April, urgent action is needed to keep this promise on track.
The Challenge: Rising Costs and Inaction
Energy UK’s research highlights that while the government’s clean power system plan has the potential to lower bills in the long term, the benefits won’t be felt by 2030 without significant intervention. They also criticise the lack of a clear action plan to reduce household bills.
Key Findings:
- April Price Hike: The average energy bill will increase by £111 to £1,849 a year, putting further strain on households.
- Persistent High Costs: Bills remain 34% higher than pre-crisis levels, and customer debt is at a record high.
- Clean Power Benefits Delayed: The benefits of a clean power system won’t materialise by 2030 without immediate action.
- Reliance on Imported Gas: Volatile wholesale gas prices, influenced by geopolitical events, are a major factor in high bills.
Energy UK’s Recommendations:
- Flexible Energy Use: Encourage households to shift energy use to off-peak times, saving up to £115 a year with “flexibility equipment” like batteries and heat pumps.
- Reduce Imported Gas Reliance: Accelerate the transition to clean energy to minimise exposure to volatile gas prices.
- Shift Policy Costs: Move policy costs from electricity bills to gas and general taxation, potentially saving £400 a year for homes with electric heating.
- Government Investment: Increase public funding to support the transition to clean power.
- Improve Grid Connections: Speed up grid connection for clean energy projects.
- Improve contracts for difference scheme: Make the scheme more effective.
Government Response:
The government maintains that its clean energy plan will deliver a more secure and affordable energy system. They highlight ongoing efforts to reform grid connections and improve support schemes. They also note that 170,000 homes will receive energy-saving upgrades.
What This Means for You:
The rising energy costs and the challenges to Starmer’s £300 cut highlight the ongoing volatility of the energy market. It is important to look at ways to reduce your energy consumption, and to see if you are eligable for any help with energy saving measures.
- Call Energy Advice Helpline for free on 0800 802 1869
- Complete our short eligibility checker to find out if you qualify for free help to reduce bills or improve the energy efficiency of your home.
