Healey urged to offer energy support in budget as bills rise 4%

As energy bills for millions of households in Great Britain are set to rise by 4% from Thursday to an average of £1,723 per year, there is growing pressure on Chancellor John Healey to offer additional energy support in next month's budget. At Labour's conference in Liverpool, Healey acknowledged that the government faces limited resources to alleviate the worldwide economic shocks impacting Britain, emphasizing that his budget would adhere to fiscal discipline.

Despite a decision by Labour to cut VAT from electricity bills, saving the average household £45 per year from October 1, households still face rising road fuel costs due to record-high diesel prices. Treasury sources insist that the October budget will be tightly focused on challenging global circumstances, with bond market volatility adding pressure to the public finances.

Some Labour MPs are concerned that Healey's team may have underestimated the severity of the energy crisis. A group of leading campaigners, charities, trade unions, and thinktanks, including the New Economics Foundation and the Joseph Rowntree Foundation, have urged the government to provide a package of universal energy support and targeted measures to assist those most affected. As the cost of living crisis deepens, the group warns that inaction would exacerbate the situation.