Key events
Government looking at ‘fundamental reforms’ to lower energy bills
Julia Kollewe
Miatta Fahnbulleh, the energy sectary, said the government will explore “what more we can do” to help those struggling with high bills, via “fundamental reforms” including investment in renewable energy.
Families will be understandably concerned about the cost of energy bills this winter, which is being driven up by the Iran war.
Energy is an everyday essential and it needs to be affordable for everyone, which is why we have cut VAT on electricity bills from October, to give families some breathing space.
This has limited the rise in the price cap and follows the £150 in costs we removed from bills earlier this year, and we will keep looking at what more we can do to protect families from unaffordable bills.
The government is looking at “fundamental reforms” to drive down energy bills for good, the energy secretary said.
Speaking to Sky News, Fahnbulleh said:
If you look at energy bills, if you look at how much of a family’s finances it is taking up, it is far too expensive.
So, whether that is short-term support that we’re providing to provide a bit of breathing space, which is what the government has done and will continue looking at that, or more fundamental reforms that we need to make to the energy market to drive down bills for good, we are absolutely determined to do that.
She argued renewable energy investment is “absolutely critical” to breaking the link between high gas costs and bills.
Fahbulleh also said she was “frustrated” global events had increased bills in the UK but would not be drawn on criticising Donald Trump for starting the war in Iran.
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Opening summary: Burnham to announce plan for 10,000 work experience placements for young people
Morning, and welcome to our UK politics blog. Prime minister Andy Burnham is nipping to the shops this morning to announce a plan to get teenagers working, as the government seeks to tackle the “youth unemployment crisis”.
Burnham will be in Sainsbury’s to welcome the supermarket’s plan to offer 10,000 work experience placements in deprived areas, focusing on communities with a high number of young people not in education, employment or training, otherwise called Neets.
Here are the deets: from October, Sainsbury’s will offer work experience and skills sessions for young people from the age of 14 in England, Wales and Scotland. Running for a year, it is hoped the plan will “help young people build confidence, gain experience and get a foot in the door,” Burnham said.
“I encourage more businesses across the country to do the same,” he added. “Access to opportunity and work experience shouldn’t depend on who you know, it should be within reach for every young person wherever they live – and that’s what I’m determined to deliver.”
The prime minister is due to speak to the media from about 9am, but other headlines this morning may overshadow the press briefing.
Ofgem, the energy regulator for Great Britain, announced the energy price cap will increase by 4% from October, meaning millions of households will face the highest energy charges in three years this winter. The Guardian’s energy correspondent Jillian Ambrose reported the following:
Gas and electricity prices will rise by 4% from October under the new cap, months after climbing 13% at the start of July to take account of soaring global energy market prices caused by the war on Iran.
Ofgem, said the new rate for about 22m households was equivalent to £1,723 a year for a typical household’s gas and electricity use, compared with the rise to £1,663 for the July to September period.
As the bill rises in consecutive quarters the typical household will pay an extra £350 a year more than in 2024, when the Labour government came to power with a promise that it would cut bills by £300 a year by the end of the decade.
Read the full report here:
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