New parents in Lothian could be missing out on free support to help with the cost of everyday baby essentials.
Britain’s biggest discounter is continuing to give away a £100 Aldi voucher to one family every week as part of its Mamia New Parent Fund, to be used on everything from nappies and wipes to toiletries.
It comes as new Aldi analysis reveals parents who choose Mamia nappies, baby wipes and formula could save over £550 during their baby’s first year compared with leading branded equivalents*.
Since the initiative launched earlier this year, Aldi has already gifted thousands of pounds in vouchers to parents across the UK.
Julie Ashfield, Chief Commercial Officer at Aldi UK, said:“The reality is that the costs don’t stop once you’ve bought the pram and decorated the nursery – it’s the everyday essentials that really add up week after week for parents.
“When you’re suddenly buying supplies like nappies and baby wipes alongside your normal shop, even small savings can make a meaningful difference over the course of a year.
“That’s exactly why we continue to invest in keeping everyday baby essentials affordable through our Mamia range, while our New Parent Fund is another way we’re helping families during those early years.”
New parents in Scotland who want to apply for Aldi’s Mamia New Parent Fund should email mamiaparentfund@aldi.co.uk with a receipt showing their latest Mamia purchase. One family will be chosen each week throughout 2026 to receive a £100 voucher to spend in any UK Aldi store.
As cost-of-living crisis worsens, Islamic Relief UK deliver food packs across the country to struggling families as part of Qurbani
Islamic Relief UK will be working with over 40 local partners, from this week as part of the religious festival of Qurbani to deliver food packs to vulnerable families and individuals affected by the country’s worsening cost-of-living crisis.
More people throughout the country are struggling with the cost-of-living, and pressure is starting to build up against local charities and foodbanks as demand rises. According to Islamic Relief UK’s recent survey, over a quarter (28%) of their local partners have had to turn people away as they cannot keep up with the intensifying demand. Now with the added impact of the Middle East crisis, the economic situation will only further push more families into poverty.
Qurbani is one of the most important months of the Islamic calendar, as Muslims across the UK donate what they can to those struggling to afford food for their families.
This year, Islamic Relief is working partners throughout the UK, in cities such as London, Birmingham, Liverpool, Leeds, Leicester, Burnley, Cambridge, Glasgow, Exeter and more, and will be working with local charities, food banks, mosques and football clubs to deliver for those who need it most.
Nadeem Baqir, UK programme manager for Islamic Relief UK said: “This Qurbani should be a time for us all to reflect on the most vulnerable. Far too many families across the country are struggling with the cost of food, and too often we hear reports from our local partners about parents who must go without to make sure their children can eat.
“But at the same time, we can see communities pulling together and looking after each other, just like our wonderful partners, who provide food to those who cannot afford it, even as they themselves are put under increasing pressure as the number of people in need rises.
“As more families struggle to make ends meet, there is a clear need for government action to ensure the support families receive is sufficient to help them afford their essential needs and prevent more households from falling into poverty.”
The UK Government has published a list of 125 everyday essentials – including fruit, oils and core pantry staples – targeted for tariff reductions, alongside uprating mileage rates to support working people with the cost of living
Government launches consultation on suspending tariffs on OVER 100 everyday essentials with the full list now available.
This Government is the first in 15 years to uprate mileage rates for 3 million people who use their own vehicle for work, saving over £120 a year for a worker doing 6,000 business miles.
The support is an additional saving for motorists following the Chancellor’s third extension to the fuel duty freeze which has put another £120 back into their pocket since last year.
Working people are set to benefit from further cost of living support, as the Government publishes a list of over 100 everyday essentials set to see targeted cuts to tariffs alongside uprating mileage rates for the first time in 15 years.
The consultation is seeking views from businesses and other stakeholders on the potential impacts of a second package. It covers a wide range of everyday essentials, from fresh fruit and vegetables, oil and baked goods, to chocolate, sauces, and soft drinks.
The list of 125 items include garlic, avocados, mangoes, nectarines, vegetable oil, olive oil and baked beans. This builds on the tariff suspension announced in April.
In parallel, we are also seeking views on whether suspension of tariffs on certain fertilisers could help farmers cope with the impact of rising fertiliser prices as a result of the conflict in the Middle East.
Chancellor of the Exchequer, Rachel Reeves, said: “The war in Iran isn’t our war, but one we will need to respond to, and my priority is keeping prices down for households and businesses.
“That’s why we’re freezing fuel duty, increasing the mileage rate for the first time in 15 years and slashed VAT temporarily this Summer to help reduce the cost of days out.”
This comes as carers, plumbers, builders and millions of other workers across the country who use their own vehicle on the job will have cheaper journeys after the Chancellor uprated mileage rates last week.
In the largest ever uprating of the rates a 10p per mile increase in tax‑free mileage rates for this tax year, backdated to April 2026, has been introduced to ease the cost of living for hardworking Britons.
Increasing the tax free per mile rates from 45p for the first 10,000 miles to 55p per mile will save around £120 for a worker doing 6,000 business miles. Up to two million employees and one million self-employed people will benefit.
This is in addition to savings drivers will make from the Chancellor’s further extension to the fuel duty freeze until the end of the year. That’s the third time Rachel Reeves has frozen fuel duty to support motorists, saving them £120 since last year.
Recognising how farmers and hauliers have been particularly exposed to high fuel prices, and their importance to UK supply chains, more relief has been announced.
For farmers and others who use red diesel and rebated biodiesel, the rate for those fuels has been cut by over a third – the lowest in over two decades. For hauliers, a road tax holiday has been put in place for a year from 1 July.
Transport Secretary Heidi Alexander said: “We are a government firmly on the side of drivers, and that means acting when hardworking people are being left out of pocket.
“The people who use their own vehicle for work are the backbone of our country – the carers, the tradespeople and the public sector workers who keep services running. For too long, they have been expected to shoulder rising costs with support that simply has not kept up.
“We’re doing all we can to ease everyday pressures on working people – that means real money back in their pockets and delivering for the people who keep Britain moving.”
Andrea Egan, General Secretary, Unison said:“This simple measure will provide immediate help for countless frontline workers in public services. Particularly at a time when living costs are going through the roof once again.
“People who need their own cars for work have been left thousands of pounds out of pocket for far too many years.
“UNISON has campaigned hard for this long overdue change. It’s good to know the chancellor has listened to the concerns of staff penalised by frozen rates.
“There’s still more to do to ensure no one is losing out and the union will continue to campaign for more over the coming months.”
This follows a much wider package of support rolled out by the Chancellor last week branded ‘Great British Summer Savings’.
It includes free bus travel for 5–15-year-olds in England, VAT slashed on children’s meals in restaurants, and VAT cut for all admissions to theatres, theme parks and other attractions.
This will help families enjoy the weekend treats, days out and staycations that make life enjoyable during the cost-of-living squeeze caused by the war in the Middle East while supporting the businesses that depend on summer footfall.
Cutting £150 on average of costs from household energy bills, freezing prescription charges and rail fares, and increasing the national minimum and living wages by hundreds of pounds are some of the actions taken at the Budget that are continuing to support families each month.
Supporting families with the cost of living and eradicating child poverty will be a key focus of the Scottish Government, First Minister John Swinney has said.
Ahead of a visit to meet parents and children at a Bookbug session in Wester Hailes the First Minister said tackling the cost of living, ensuring people get support before reaching a crisis, and helping children and parents in the early years will be key priorities for the new Cabinet.
In March, the Scottish Government set out plans to drive further reductions in child poverty. This includes committing an additional £500,000 over two years to expand Bookbug, supporting a further 20,000 low-income families across Scotland.
Mr Swinney said: “Every child in Scotland deserves a future free from the scourge of poverty. It will be the defining mission of my government to support families with the cost of living and eradicate child poverty.
“Our policies are already helping to keep an estimated 100,000 children out of relative poverty this year – but we are determined to deliver truly ambitious change to reduce the cost of living.
“This includes expanding all year round childcare to all children from nine-months to the end of primary school, introducing a £2 nationwide cap on bus fares, increasing the Scottish Child Payment to £40 for under-ones and delivering comprehensive ‘Whole Family Support’ that wraps around families in their communities, helping break the cycle of poverty.”
Social Justice and Housing Secretary Shirley-Anne Somerville said: “I am delighted to take on the role of Cabinet Secretary for Social Justice and Housing.
“I look forward to driving further progress on the work started in the last parliamentary term to eradicate child poverty, tackle the cost of living and accelerate the delivery of more affordable homes.
“Reducing child poverty in Scotland is at the heart of this government’s ambitious agenda for change and we will work across government, the parliament and with our much-valued third sector, to give families the safety and security they need.”
Cost of living boost with free bus travel for children and targeted food tariff cuts
Free bus travel for children throughout August, helping families across England get out and explore
Comes as products including biscuits, chocolate, dried fruit and nuts set to see targeted cuts to agri-food tariffs, to help to reduce pressure on food prices.
Move is latest in government drive to support families and help ease pressures on household budgets.
Families travelling this summer will benefit from free bus travel for children as the Chancellor ramps up efforts to help with the cost of living (we already have this in Scotland – Ed.)
The Chancellor is committing more than £100 million to fund the free fares scheme and also continuing to support bus services. Every child aged five to 15 in England will travel free on participating local buses throughout August – with unlimited journeys, no registration required, and at no cost to families.
It is part of a scheme called ‘Great British Summer Savings’. The Chancellor will set out more details today on how the Government will support families and businesses this summer.
Prime Minister Keir Starmer said: “We know many hard‑working families are still feeling the squeeze and too often think they have to hold back.
“By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we’re putting money back into people’s pockets and making life that bit easier.
“This government is focused on practical steps that help right now — easing pressure on household budgets, supporting parents during the school holidays, and backing British businesses.”
It comes as the government prioritises protecting households and businesses from rising costs, and the announcements today will build on the work to cut energy bills, protect motorists and crack down on unfair profiteering.
This month the government has delivered £117 off energy bills on average, increased the minimum wage again and frozen rail fares and prescription charges, thanks to the choices the Chancellor made at the Autumn Budget.
As the war in Iran puts pressure on prices at home, the government has stepped in with a tax cut for hauliers to keep our shelves stocked and economy moving, extended the 5p fuel duty freeze to protect motorists at the pump, and emergency relief for families in rural communities who have been hit by a sharp increase in the price of heating oil.
The Chancellor will say that in an era of global conflict, this government has the right economic plan, as economic indicators showed the UK beating the forecasts again this week. The UK was the fastest-growing economy in the G7 at the start of this year, and Monday the IMF upgraded our growth forecast for 2026. Yesterday we saw inflation falling faster than expected, thanks to the action taken at the budget to keep energy prices down.
Chancellor of the Exchequer Rachel Reeves said: “My number one priority is protecting households from rising costs. This summer I want every family to be able to enjoy themselves, that’s why we’re launching the Great British Summer Savings Scheme, and why we’re helping kids with free bus travel throughout August.
“As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”
Transport Secretary Heidi Alexander said: “Free bus travel for every child in August means parents can plan days out, visit loved ones and make the most of the holidays without the added financial pressure.
“We’ve already seen what’s possible – in the West of England, the Mayor’s free travel scheme is making a real difference, particularly for young people in the most deprived communities. That’s exactly the kind of impact we want to deliver for families right across England this summer.
“This builds on the work we’re already doing to make buses better for everyone – from the £3 bus fare cap and the landmark Bus Services Act, to our £3 billion investment in local services and frozen rail fares for the first time in 30 years. We’re making sure public transport works for people, not against them.”
Free bus travel for children will run from 1 to 31 August and covers participating local bus services across England. This could save a family with two children who make a weekly return trip at a £1.50 child fare £27 in August.
It comes following a successful pilot ran last summer by the Mayor for the West of England, Helen Godwin.
Helen Godwin, Mayor of the West of England, said: “Kids Go Free in the West of England has seen around 1.4 million free journeys over the summer, Christmas, and Easter holidays since my election last year.
“It’s brilliant that, after we have invested devolved funding to make a difference that people across the West can see and feel, the government is rolling out Kids Go Free nationally this August!
“There’s been a huge increase in public transport use through our offer already, including children and families travelling on our new green buses. Bus travel from our lowest income areas doubled year-on-year last summer, with kids able to just hop on board and no registration needed.
“I’m so excited to see Kids Go Free return again for the school summer holidays – helping more children and young people to explore the best of what the West has to offer.”
This funding also includes support for bus services that have experienced increased costs, recognising the vital service they provide particularly for school children, pensioners and those living in rural communities. The Government will work with the sector to decide how this support can be allocated with the greatest impact.
Separately, as part of wider efforts to reduce pressure on prices, the Government is launching a business engagement exercise, with a view to making further targeted cuts to agri-food tariffs, suspending tariffs on over 100 types of products including biscuits, chocolate and dried fruit and nuts.
The expected benefit to consumers is more than £150 million a year. The full list of products will be published next week, with business engagement commencing next week. As per previous commitments, the list takes account of domestic production and food security and does not include any significant UK primary agriculture production. This is on top of the expected consumer benefits from agri-food tariff suspensions, announced at the end of April, of around £100 million to £400 million each year.
Today’s announcements build on action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage. Yesterday (May 20) the Government announced extending the 5p fuel duty cut until end of year.
Michelle Ovens, CBE, CEO & Founder of Small Business Britain, said: “It’s fantastic to see the Chancellor’s commitment to additional funds for the free fares scheme.
“Giving children across the country the opportunity to travel freely during the summer holidays is vital in broadening aspirations, building life experiences, and encouraging young people to envision a future without boundaries.”
Ben Plowden, Chief Executive of Campaign for Better Transport, said: “This is a welcome move to help more families to get out and about by bus this summer and highlights the importance of affordable public transport in easing cost-of-living pressures on hard-pressed households.
“Investing in affordable, reliable bus services is one of the most cost-effective ways of improving people’s quality of life and tackling rising energy costs year-round.”
Lydia Horbury, CEO of passenger champions Bus Users UK said: “Making bus travel free for children throughout August is a hugely welcome step that will help families, encourage greater use of public transport and give young people more independence and opportunity over the summer holidays.
“For many households, even small savings can make a real difference, and this initiative removes both cost and complexity by making travel simpler and more accessible. It is also a wonderful opportunity for more families to experience the convenience and value of local bus services first hand.
“We hope this not only supports communities over the summer but also inspires lasting confidence in public transport and encourages the next generation to see buses as an easy and sustainable way to travel.”
Jason Prince, Director of the Urban Transport Group, said: “Buses are the most used form of public transport, essential in connecting people to opportunities.
“Building on the successful fares offers of many of our member transport authorities, Kids Go Free is a welcome and timely intervention – helping to make public transport more affordable over the summer holidays, and supporting families and young people to get to where they want to go.”
THERE ARE SOME WORDS OF CAUTION, HOWEVER …
Helen Barnard, Director of Policy and Research at Trussell said:“We are deeply concerned about the rising cost of living and the risk this will drive even more people into hunger and hardship, piling pressure on food banks that are already under immense strain.
“This package of summer support will do little to reassure people already struggling to pay their bills and put food on the table that the government has grasped the potentially dire impact of coming price rises, or is prepared to protect people at most risk of being forced to the doors of food banks.
“We expect energy bills to start rising this summer, continuing into the winter, with food and other costs also expected to rise over the year into winter and especially in early 2027. The government must urgently prepare a package of targeted measures to protect people on the lowest incomes from being forced into severe hardship as these cost pressures take hold.
“Last year, food banks in the Trussell community provided more than 2.6 million emergency food parcels across the UK. This isn’t right. The UK government must put appropriate plans in place to protect people on the lowest incomes from bearing the brunt of further spikes in prices and ensure that everyone can afford the essentials.
“The government made a UK manifesto promise to end the need for emergency food. We will not see this become a reality without further bold action to build on the progress it has started.”
Director of Policy and Influencing at Independent Age Morgan Vine said:“The cost of living support measures announced today to reduce the price of some food and travel are positive, but do not address the biggest issue weighing on older people living in financial hardship right now, energy bills.
“It’s inevitable that energy prices are going to soar as we move through summer and into the colder months.
“People in later life on low incomes tell us they are increasingly anxious and are already cutting back on essentials. Many simply cannot afford any further increases in their bills. We urge the UK Government to announce as soon as possible additional targeted energy support for low-income households.
“People of all ages on low incomes urgently need this reassurance so that they have a chance at keeping their homes warm during the colder months.”
Three million UK households are being forced to skip meals and cut family visits according to new research from Which? that reveals the human impact of cost of living pressures and collapsing consumer confidence.
Which?’s latest Consumer Insight Tracker shows that households across the country are having to take more and more drastic measures to mitigate rising costs.
In the month to 10 April, Which? found consumer confidence fell to -62 – the lowest level since the height of the cost of living crisis in 2022 (-70). This decline reflects a widespread pessimism as the vast majority of UK adults (71%) think the UK economy will worsen over the next 12 months, while fewer than one in ten (9%) think it will improve.
Which? found an overwhelming majority of UK adults (85%) are now worried about food prices – up from 83 per cent in February. This concern is forcing lifestyle changes as two thirds (67%) of households have made at least one adjustment to their shopping or eating habits in the last month to reduce how much they spend on food.
The most common adjustments are buying cheaper products (43%), buying more supermarket own budget-range items (37%), and buying extra items when on promotion (31%).
Concerningly, Which? found one in seven (15%) UK households reported going without some foods and one in ten – equivalent to three million households – are now skipping meals to keep the cost of their weekly shop down.
Food is not the only major concern for households, Which? found eight in ten (83%) UK adults are worried about fuel prices – this figure has shot up from 71 per cent in February of this year. Over two thirds (69%) have made adjustments to their driving habits to battle costs, with knock-on effects on their social and family lives.
Most common adjustments include making fewer leisure trips over the last month (33%), and planning journeys more carefully (23%). However, about one in eight said they had visited friends and family less (13%).
This increase in concern over everyday essentials reflects how financial difficulty has risen rapidly throughout 2026. Consumer sentiment was already bad prior to the Middle East conflict, but has fallen sharply in the last two months.
In the month to 10 April, over half (53%), or an estimated 15 million UK households, made adjustments to cover essential spending, such as cutting back on essentials (29%), using savings (25%), selling possessions (9%), or borrowing from friends or family (9%).
Worryingly, 7.7% of UK households missed a house bill, loan, or credit card payment. The average rate of missed payments over the last three months was 7.5%, up significantly from 5.7% at the end of last year. If this trend continues, missed payments will reach levels seen during the peak of the cost-of-living crisis over the next few months.
These findings intensify pressure on the government to find interventions that will ease household costs, improve consumer confidence and restore faith in markets. Businesses must also do everything possible to support their customers and ensure they are offering genuine value for money as millions of households struggle to cover the basics.
With many households now reaching a breaking point, Which? is calling for urgent policy interventions outlined in a manifesto launched in Parliament this week to tackle unfair rip-offs and improve access to essentials.
The manifesto includes a priority call to reform the Healthy Start scheme, a vital nutritional safety net for low-income families during pregnancy and early childhood. Which? is warning that its value has failed to keep pace with food inflation and is urging the government to uprate payments, expand eligibility to all families on Universal Credit, and encourage supermarket support to ensure those struggling most can afford a healthy diet.
As financial difficulty continues to rise, anyone struggling to afford essential payments such as housing, bills or credit cards should speak to their provider immediately for support.
Rocio Concha, Which? Director of Policy and Advocacy, said: “Our latest research highlights the deepening strain not only on household finances, but also on people’s physical and social wellbeing as cost of living pressures bite.
“Many are already making difficult choices, such as skipping meals. Without meaningful interventions the number of people taking drastic measures is likely to increase.
“We need to see urgent action, as set out in our Cost of Living Manifesto, to address these costs and help restore confidence before even more households are pushed into serious financial difficulty.”
Drivers are being urged to act now as motoring costs threaten to climb with fuel price volatility, insurance hikes and rising repair bills hitting household budgets hard.
Motoring experts at car leasing comparison site LeaseLoco have offered drivers practical tips to help cut everyday motoring costs and avoid being caught out by price rises.
Petrol and diesel prices have been unpredictable in recent years but ongoing tensions in Iran have pushed oil markets back into the headlines.
Disruption to Middle East supply routes are creating fresh uncertainty and the potential for sudden price spikes at the pump over the coming weeks.
Spring and summer also typically see higher driving volumes thanks to bank holidays and ‘staycations’ which can push pump prices even higher.
At the same time, insurance premiums remain elevated following a sharp rise in claims costs and vehicle repairs.
Car maintenance is another growing concern as warmer weather reveals damage caused over winter, including pothole wear, tyre deterioration, worn brakes and battery strain.
Drivers who delay routine maintenance often face larger repair bills later in the year, especially as garages tend to become busier ahead of peak travel season.
John Wilmot, CEO of car leasing comparison site LeaseLoco.com said: “Many drivers assume their biggest motoring cost is fuel, but several expenses tend to rise together in spring and summer.
“Increased travel pushes up fuel demand and cars begin to show the effects of winter wear and tear.
“But small habits can make a surprisingly big difference. Improving fuel efficiency, staying on top of maintenance and reviewing insurance cover can collectively save drivers hundreds of pounds over the coming months.
“Taking action early is key, as waiting until a problem appears often means paying more than needed.”
To help motorists stay ahead of rising costs, LeaseLoco’s motoring experts recommend:
1.Shop around well before your insurance renewal
Start comparing quotes three to four weeks ahead of your renewal date. Insurers can reward early shoppers with lower premiums, while leaving it until the last minute can lead to higher prices.
2.Review your cover and excess levels
Removing unnecessary add-ons and adjusting your voluntary excess could reduce premiums, as long as it remains affordable in the event of a claim.
3.Avoid last-minute fuel purchases
Filling up near motorways, holiday routes or on peak travel days often means paying more. Planning fuel stops and using price comparison apps can help drivers find cheaper stations nearby.
4.Check tyre pressure at least once a month
Under-inflated tyres increase fuel consumption, reduce tyre lifespan and compromise safety. Correct tyre pressure improves efficiency and reduces wear.
5.Clear out excess weight from your vehicle
Roof racks and heavy items in the boot all increase fuel usage. Removing anything not needed for daily driving can improve efficiency immediately.
6.Adopt smoother driving habits
Gradual acceleration, gentle braking and maintaining a steady speed can significantly reduce fuel consumption. Using cruise control on longer journeys can also help.
7.Stick to regular servicing schedules
Oil changes, filter replacements and basic checks keep engines running efficiently and can prevent expensive breakdowns later in the year.
8.Check your air conditioning early
Faulty air conditioning systems often go unnoticed until the first hot day. Early checks can prevent costly repairs and improve fuel efficiency.
9.Combine errands into fewer trips
Multiple short journeys from a cold engine use far more fuel than one longer trip. Planning routes in advance reduces unnecessary mileage.
10.Consider car sharing or alternative travel when possible
Families across the country will be better protected from energy crises, as government moves to break link between gas and electricity prices
Families across the country will be better protected from energy crises, as government moves to break link between gas and electricity prices
New plans include long‑term fixed‑price contracts for renewables, protecting families when gas prices spike
Immediate action to tax excess profits through the Electricity Generator Levy by raising the rate from 45% to 55%, ensuring an increased proportion of the extraordinary revenue generated when the gas price spikes is available to government to support businesses and households with the cost-of-living
Comes as government doubles down on drive for clean, homegrown power with raft of measures to unlock public land, speed up planning and cut bills for families
Plans to better protect families and businesses by ending the unfair way international gas prices push up electricity prices across Great Britain take a major step forward today.
Instability in the Middle East has shown that Britain’s reliance on international fossil fuel markets leaves families and businesses exposed to volatile gas prices, driving the cost-of-living crisis even though much of the country’s electricity comes from cheaper renewables and nuclear.
When wars, geopolitical tensions or supply shocks abroad push up global gas prices, electricity bills rise with them, exposing families to crises they have no control over.
Over time, this problem is easing as new clean energy projects are built on fixed price contracts that protect consumers from gas price volatility. But a significant share of renewable generation – about 30% of Britain’s power supply – is still exposed to wholesale prices set by gas, leaving families vulnerable when international prices rise.
Therefore, to shield families from future crises, today the government is setting out new measures to ‘break the link’, reducing the impact that volatile gas prices have on the price of electricity. This will be done by:
Voluntary long term fixed contracts: offered to existing low-carbon generators not on fixed‑price contracts – covering around a third of Britain’s power supply. This will help protect families and businesses from higher bills when gas prices spike, with contracts offered only where they deliver clear value for money for consumers
An updated Electricity Generators Levy: immediate action to tax excess profits through the Electricity Generator Levy by raising the rate from 45% to 55%, ensuring an increased proportion of the extraordinary revenues generated when the gas price spikes is available to government to support businesses and households with the impacts of the conflict in the Middle East on the cost of living
Measures announced today will further reduce the share of electricity exposed to gas price shocks and provide generators the economic incentive to move on to fixed contracts not linked to volatile gas. The government is monitoring the impact of the current crisis on energy bills and will be ready to step in to provide targeted support where necessary.
Britain has already moved from gas setting the price of electricity around 90% of the time in the early 2020s, to around 60% today. Through the government’s clean energy mission, it is estimated gas will set the wholesale price around half of the time by 2030.
Prime Minister Keir Starmer said: “We need to get off the fossil fuel rollercoaster – this will make energy bills more stable and take the pressure off family budgets.
“When global gas prices spike, people here shouldn’t be picking up the tab.
“Our focus is simple: easing pressure on household budgets now, while building a homegrown energy system that protects families from global instability in the years ahead.”
Energy Secretary Ed Miliband said: “As we face the second fossil fuel shock in less than 5 years, the lesson for our country is clear: The era of fossil fuel security is over, and the era of clean energy security must come of age.
“That’s why we’re doubling down on clean power, to give our country energy security and bring down bills for good.”
Chancellor Rachel Reeves said: “Hardworking British families and businesses should not bear the brunt of global gas price shocks while electricity generators are making exceptional profits.
“Alongside moving generators onto the competitive pricing assured through wholesale Contracts for Difference, increasing the EGL to 55% will help to break the link between high gas prices and high electricity prices – offering households and businesses stronger protection against future energy shocks.”
Further measures
Speaking today at the Good Growth Foundation, the Energy Secretary set out further measures to help cut bills for families and deliver more clean, homegrown power:
Bigger grants for households on heating oil and LPG
The crisis in the Middle East has impacted those on heating oil and LPG the hardest. The government is today announcing an increase to the Boiler Upgrade Scheme (BUS) grant for properties heated by oil and LPG, taking the total grant to £9,000. This will help those households and small businesses in England and Wales most impacted by rising energy prices, particularly in rural areas, to electrify their heating and provide greater certainty over energy bills.
Further details on Transitional Energy Certificates
Today in advance of legislation, we are publishing further details on Transitional Energy Certificates to provide greater certainty and clarity for industry looking to invest in already-explored areas near existing licensed fields, supporting a fair and managed transition.
Faster upgrades for social housing
The government is already investing £1.2 billion to upgrade 100,000 social homes over the next 2 years. To accelerate further, the government is today providing an additional £100 million of funding for the Social Housing Fund, subject to final approvals, to support the delivery of up to a total of 57,000 solar installations for households this financial year. Through the Social Housing Fund and social housing regulations in the ‘Warm Homes Plan’, this will help households cut bills by hundreds of pounds and support up to a million homes reach EPC C.
Solar panels for schools and colleges
Building on the success of Great British Energy’s solar scheme, the government is backing the company to extend support for more rooftop solar installations on a further 100 schools and colleges this year. Up to £40 million of government investment, subject to final approvals, Great British Energy will deliver new rooftop solar and renewable schemes – helping the public sector cut energy costs and reinvest savings.
Public land
Driving forward plans to massively expand renewables across the Public Estate – including using brownfield land, industrial sites and railway sites to host solar panels and wind turbines. This could unlock up to 10 GW of capacity, even using only a fraction of government land, powering the equivalent of around 5 million homes.
Planning and land rules
Streamlining outdated rules to unblock the grid and speed up clean, homegrown power, through the biggest overhaul of planning, land access and grid connection processes since the start of the government’s clean energy mission — cutting delays for essential grid upgrades and renewables, and exploring new routes for developers to build and connect their projects faster.
EVs, heat pumps and solar
Plans to make it easier for people to switch to cheaper electric transport and heating, by making EV chargers, solar panels and heat pumps easier to install for renters, flat-dwellers and households without a driveway.
The government is exploring ways to ensure that low-income households can benefit from plug-in solar through our ‘Warm Homes Plan’ this year, and have earmarked up to £25 million with a view to piloting support for plug-in panels in partnership with local authorities and mayors: our vision is a street by street approach where tens of thousands of low-cost solar panels are delivered to those most in need.
Reformed National Pricing
Households and businesses will benefit from a cheaper, more efficient energy system through a new Reformed National Pricing Delivery Plan. The delivery plan shows how smarter planning and faster delivery of electricity infrastructure could unlock up to £20 billion in benefits between 2030 and 2050.
