Healey faces pressure to add fresh energy aid as household bills climb 4%

John Healey is under mounting pressure to propose fresh energy assistance in the 28 October budget as a 4% increase in the energy price cap threatens to raise average household bills to £1,723 a year. While the cap will hit a three-year high, a VAT reduction on electricity bills announced by Andy Burney will shave £45 off the cost for consumers. A coalition of campaigners, charities and unions has sent an open letter demanding both universal and means-tested aid, warning that the lack of action could worsen the cost-of-living squeeze.

Treasury insiders say the budget will be tightly focused on fiscal restraint, with tax devolution and other major reforms likely pushed to a spending review next year. Labour MPs express concern that the Treasury does not fully grasp the severity of the energy crunch, and the TUC calls for faster, larger-scale relief. The government also faces pressure to extend the VAT holiday and shift clean-energy levies onto general taxation.