The cost of energy has trebled in a year. Without intervention, the energy price cap will increase to £3,549 in October and rise again in 2023. Millions of UK households would be plunged into fuel poverty. The new Prime Minister has indicated that a substantial support package will be introduced to avert this immediate crisis. The government response must bring down energy bills in the short and long term, while also lowering inflation and reducing the risk of a prolonged recession.
By reducing our chronic dependency on gas, the government can address many of the economic and health challenges threatening the UK’s return to growth and wellbeing. This briefing sets out how to lower energy bills for good, strengthen the economy, and increase our energy security.
- Emergency financial support to mitigate the impact of surging energy bills.
- £5bn total investment in energy efficiency this Parliament to lower household, business, and public sector exposure to high gas prices and permanently bring down energy bills. Starting with £2bn to ramp up existing energy efficiency schemes, with a further £3bn over the next three years to launch a new long-term programme to support millions more households.
- Energy market reform to ensure the benefits of low-cost renewables flow to consumers, accelerating the transition away from expensive gas, and removing legacy renewable policy costs from consumer bills.
- Green finance regulatory reform to leverage private investment and rapidly reduce the economy’s energy cost base by transitioning to net zero.