Tag: cost of living crisis

Burnham to cut tax on household electricity bills to give breathing space on cost of living

New Prime Minister takes immediate action to cut taxes on electricity bills to give millions of households breathing space this winter

  • New Prime Minister takes immediate action to cut taxes on electricity bills to give millions of households breathing space this winter
  • Tax cut this year funded from cancelled Digital ID programme will see VAT on electricity bills removed from October 1
  • In one of his first acts as Prime Minister Andy Burnham promises to “put more money in people’s pockets and bring back hope”

Millions of households across the UK will benefit from immediate action to help with their electricity bills this winter, the Prime Minister has announced as one of his first decisions in office. 

This follows his commitment to the nation on the steps of Downing Street yesterday to give people some breathing space and help with the cost of living. 

Government is tackling rising bills with a tax cut to remove VAT from domestic electricity bills from October 1 in time to impact the next Ofgem price cap. This immediate action applies and is funded for this financial year.

The cost of this immediate action for this financial year – taken now, before the next price cap – is being funded from the cancellation of the (£1.8bn) Digital ID programme.

Any further action, including on funding for longer-term measures, will be taken at the Budget alongside an OBR forecast.  All decisions at that point will continue to be funded and also consistent with the government’s fiscal rules.

Prime Minister Andy Burnham said: “Westminster has not been working for people for too long, with families struggling with the cost of living.  

“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.

“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”

Cutting VAT on electricity bills is expected to take around £45 off the yearly Ofgem price cap in October. This is on top of the £150 removed from bills at the last Budget.  

By targeting electricity bills, more people will be supported with rising bills and the government is helping to keep inflation down.  

All suppliers are expected to pass the VAT reduction on to all customers, including those on fixed tariffs, as they did with the £150 of costs taken off energy bills announced at the last Budget.

Small businesses who qualify for the domestic energy VAT relief and are not registered for VAT, as well as charities and residential care homes eligible for the reduced rate will also benefit.  

Chancellor of the Exchequer John Healey MP said: “For too long, too many people have struggled with the cost of living. 

“Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter. 

“This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”

Welcoming the announcement, local MP Tracy Gilbert MP said:  “Families across Edinburgh North and Leith have been paying the price for the cost-of-living crisis for far too long. This VAT cut on energy bills is welcome news that will make a real difference to household finances.

“Labour is taking practical action to reduce costs for working people and deliver the change people voted for. This is a government that is on your side, helping families with the pressures they face every day.”

Responding to the announcement of the scrapping of the 5% VAT charge on electricity bills, Independent Age Chief Executive Joanna Elson, CBE, said: “Today’s VAT cut to electricity bills is an important and welcome acknowledgement that immediate action is needed to drive down energy costs.

“We hope the removal of the 5% VAT charge from October – reducing the typical annual bill by around £45 – signals the start of sustained action by the new Prime Minister to ease the relentless financial pressures on older people living on low incomes.

“We are already hearing from older people on low incomes who are rationing their energy use or cutting back on the essentials, and that’s before the winter months take hold when energy use increases.

“If Andy Burnham is to make good on his pledge to ease the cost-of-living pressures and help millions of older people living in poverty, we urge him to go further and lead his government to increase the Warm Home Discount from £150 to £400 without adding the cost to energy bills and develop a more comprehensive energy social tariff for people of all ages on low incomes.”

Cutting VAT on electricity bills is expected to take around £45 off the yearly Ofgem price cap in October. This is on top of the £150 removed from bills at the last Budget.  

By targeting electricity bills, more people will be supported with rising bills and the government is helping to keep inflation down.  

All suppliers are expected to pass the VAT reduction on to all customers, including those on fixed tariffs, as they did with the £150 of costs taken off energy bills announced at the last Budget.

Small businesses who qualify for the domestic energy VAT relief and are not registered for VAT, as well as charities and residential care homes eligible for the reduced rate will also benefit.  

As part of the ‘day one commitment to bring back hope to Britain’, the change supports the poorest households, who spend a higher percentage of their income on energy bills. 

Energy bills have risen since Russia’s invasion of Ukraine and have been exacerbated because of the war in Iran. But people need support now, which is why the government has acted to provide immediate breathing space for millions of households.

TUC says hike in bank windfall tax “long overdue” as bank bonuses hit £25 BILLION

  • Bank bonuses have never been higher in cash terms and have seen their highest real terms quarter since the 2008 financial crisis
  • Bonuses totaled £25 billion in the financial year ending in 2026 Q1
  • Record bonuses come on top of banks registering eyewatering profits with the big four banks – Barclays, HSBC, Lloyds and Natwest – making over £1 billion profit a week in Q1
  • TUC general secretary says huge payouts show that a hike in the bank surcharge tax is “common sense and long overdue”

New analysis from the TUC reveals bank bonuses have hit a post-crash record – as the union body calls for a hike in the bank windfall tax, which it says is “common sense and long overdue”.

Ahead of the Chancellor’s Mansion House speech on Tuesday, the TUC is calling for an increase in the bank surcharge tax to permanently cut energy bills for the majority of households through a social tariff. 

Across the financial and insurance industry, a total of £25 billion was paid out in bonuses in the financial year ending in March 2026.

Analysis of the first quarter of 2026, when most bonuses are paid, show that bank bonuses have never been higher in cash terms – and saw their highest real-terms quarter since 2008. 

Annual growth of bonuses is also escalating and was 16% in the first quarter of 2026. This has only once been higher since 2008 financial crash.

A cap on bank bonuses to curb the excessive risk taking that led to the 2008 financial crash was removed by the previous Conservative government in 2023.

The union body says that “while sky-high bills are looming for ordinary working people, bank bonuses are booming” which is further evidence that banks could easily afford to pay more tax. 

Currently the bank surcharge is an additional 3% corporation tax on the profits of banking companies above £100 million, which was reduced from 8% in April 2023 by the Conservatives.

TUC analysis reveals an increase in the bank surcharge could raise between £9bn-60bn over the next four years:

  • A 16% surcharge, which is doubling what it originally was before the Conservatives cut it, would deliver £24bn over four years.
  • A 35% surcharge, which would be the same level as the windfall tax the Conservatives imposed on energy companies, would deliver £60bn over four years.

Even just reversing the Tory cuts and setting it at 8% – which the TUC says is the “bare minimum” – would raise £9bn over four years.

Eyewatering profits

The bonus figures come on top of latest profit data which show the big four banks – Barclays, HSBC, Lloyds and Natwest – have made £13.8 billion in the first quarter of 2026 alone, despite HSBC profits taking an unexpected hit because of fraud-related charges. 

This comes after the big four banks made profits of £45.7bn in 2025. TUC analysis of the wider banking sector shows profits are 40% higher than in the lead up to the 2008 financial crisis.

The TUC says that an increase in the bank surcharge could raise significant funds over the coming years – particularly given the scale of banks’ current windfalls.

The union body also warns that if – as inflation goes up – the Bank of England holds interest rates at a higher level than previously expected, banks will be set to make even more money. 

Bank profits have been turbocharged by the removal of the bank surcharge just as high interest rates meant excess profits for banks. 

This has led to higher returns both from net interest (the difference on interest charged to borrowers and paid to savers) and interest paid to banks on reserves they hold at the Bank of England. 

Tax banks to cut bills

The TUC is calling for an increase in the bank surcharge tax to deliver a permanent social tariff to cut energy bills to all those on low and middle incomes by up to £559 a year.

The scheme design includes a built-in trigger for support levels to ratchet up during acute energy cost crises – such as the current period – to keep bills manageable. 

This will protect living standards and help ensure consumer spending holds up. It will also protect our economy from sustained shocks by keeping energy prices down and helping to reduce inflation. 

The TUC says if put into place now, the scheme – including the emergency tariff – would cost £3.4-5.9bn per annum, which could be paid for through increasing the bank surcharge. The union body says this would boost the economy far more than allowing big banks to stockpile excess profits. 

TUC General Secretary Paul Nowak said: “While sky-high bills are looming for working people, bank bonuses are booming.

“Every time there is talk of taxing banks, some of the richest people in the country start whining and try to claim they can’t afford to pay any more.

“But the big banks are making a killing off the back of higher interest rates and mortgage misery across the country. They can well afford to pay more tax.

“The case for an increase in the bank surcharge tax has never been greater. It’s a long overdue common-sense solution – and the government should use to money raised to cut people’s energy bills.”

Kids eat free this summer at Canopy Kitchen & Courtyard

As families across Edinburgh search for ways to keep children entertained during the school summer holidays, Canopy Kitchen & Courtyard is launching a “Kids Eat Free” offer from 6 July to 6 August, creating the perfect family friendly day out at the Edinburgh Meadows.

Perched on the edge of one of the city’s most loved green spaces, within the historic Old Royal Infirmary, now The Edinburgh Futures Institute, Canopy Kitchen & Courtyard is perfectly placed for a family day out. Enjoy an afternoon in the park, a visit to the nearby playground, or simply some time outdoors before sitting down for a relaxed meal together. 

More than just a restaurant, Canopy Kitchen & Courtyard has become a creative community hub, where guests are greeted by a bright family friendly atmosphere, and fresh menu of locally sourced classics. While the menu changes to make the most of fresh seasonal ingredients, children can expect familiar favourites such as cream of tomato soup, fluffy pancakes served with fresh strawberries or grilled pork sausages with mashed potatoes, peas and gravy.

Open to both locals and visitors, the month-long offer is designed to make family dining a little more affordable during the school holidays, while giving families another reason to enjoy time together outdoors this summer. 

Available 6 July – 6 August. One complimentary children’s meal available with every adult main course purchased. Offer valid for children aged 12 and under. Subject to availability and cannot be used in conjunction with any other offer.

To find out more or book a table, please visit: https://www.canopyedi.com/ 

Come to Drylaw Neighbourhood Centre for Monday meals

Come along on Monday to our breakfast café, 9 – 10:30am for some tasty hot filled rolls and hot drinks.

We also have lunch on from 11:30am – 12:30pm. A firm favourite – baked potatoes on the menu!

The Monday Café is open to everyone, and all meals are free; a small donation is appreciated if you are able.

Today: Community Lunch at Empty Kitchens Full Hearts

Menu for Friday the 3rd of July 🥣

We are excited to share a delicious community meal with you. We do our best to have a variety of options, including vegetarian and a delicious pudding.

What’s on the menu today:

Root veg soup

Tuscan bean chicken stew

Veggie haggis pasta

Please check the board or ask our volunteers about allergens. And just a heads-up, our food is served until it runs out!

Do come along and enjoy. Thank you!

Summer Breakfast Club returns to Muirhouse

Summer Breakfast Club is back at the hub!

Cereal, fruit, snacks and drinks available 10-12 every Mon to Sat during the summer holidays!

This year we’ve joined forces with the North Edinburgh Arts team to deliver this and a whole programme of family events and activities!

TODAY: Community Meal at Empty Kitchens Full Hearts

Menu for Friday 26th June 🥣

We are excited to share a delicious community meal with you tomorrow. We do our best to have a variety of options, including vegetarian and a delicious pudding.

What’s on the menu today:

Broccoli soup

Mexican beef stew with rice

Veggie haggis curry with rice

Please check the board or ask our volunteers about allergens.

And just a heads-up, our food is served until it runs out!

Do come along and enjoy. Thank you!

Great British Summer Savings: Tax cut on kids’ meals and days out goes live

  • Every family across the UK will pay less tax on meals and days out as new VAT cut helps families enjoy trips to the seaside and making memories with loved ones.
  • “I cannot think of a simpler and more accessible way to bring some affordable treats into family life this summer” – more businesses back the scheme and commit to passing on savings to customers including Butlin’s, Burger King, Wetherspoons and Picturehouse.

ALL FAMILIES can enjoy children’s meals in restaurants and days out for less from today as the Great British Summer Savings tax cut goes live today.

With every family set to benefit, the scheme will see VAT cut from 20% to 5% on eligible activities across England, Wales, Scotland, and Northern Ireland. This tax cut will help families enjoy weekend treats, days out, and day trips that make the most of the summer.

Meanwhile, the scheme will support businesses by generating additional summer footfall. Businesses up and down the country have confirmed their involvement in Great British Summer Savings, including some of Britain’s most prominent attractions and eateries.

Picturehouse, Everyman Cinemas, Vue, Butlin’s, Wetherspoons, Shepherd Neame pubs, McDonald’s, KFC, and Burger King are among the businesses that have made the commitment to pass on these savings to customers since the Chancellor held a roundtable with major leisure and hospitality companies last week.

Prime Minister Keir Starmer said: “The cost of living isn’t just about paying the bills, it’s about being able to afford the moments that matter with your family.

“Whether it’s a trip to the cinema, a day out together or family meal, too many parents have had to hold back because of pressure on household budgets – that’s why we’re slashing VAT on family days out this summer.”

Haven Holidays is also participating and expects to give up to £5 million back to families across their 39 parks during the scheme. Families will benefit whether they have already booked their holiday or book in the coming weeks.

In addition to passing on the reduction in VAT on their kids’ menus, Haven holidaymakers who purchase the Play Pass as part of their booking will receive a £7.50 voucher for each child.  These vouchers can be redeemed against any of the many activities available on its parks.  

Chancellor of the Exchequer, Rachel Reeves, said: “I know the cost of living is a number one concern for families, and it can be even harder over the summer holidays when kids want to do things and money is tight. So we’re making it that bit easier for families to make memories together and enjoy the little treats – while giving a boost to businesses across the UK.

“This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, and freezing prescriptions and rail fares.

“We are able do this because we have the right economic plan, resulting in the UK having the fastest growing economy in the G7.”

Prices will be slashed for:

  • Children’s menu meals served in restaurants for consumption on the premises
  • Children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions
  • Admission tickets, for both children and adults, to a range of attractions, including amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.

Lyn Goleby, Founder and Chair of Picturehouse, said: “I cannot think of a simpler and more accessible way to bring some affordable treats into family life this summer.

“We’re looking forward to a summer of family cinema that is super charged in every way except price.”

Simon Palethorpe, CEO of Haven, said: “Summer is a time for making memories, and that’s why we’re giving back up to £5 million to our guests and owners as part of the Government’s Great British Summer Savings initiative.

 “We know household budgets remain under pressure, and we want to help our holidaymakers enjoy more of what matters – whether that’s a hole-in-one on the Crazy Golf, a leap of faith off The Jump tower or another shot to hit the bullseye in the Archery.” 

A Butlin’s spokesperson said: “We’re pleased to support the Great British Summer Savings initiative by passing on the temporary VAT reduction where eligible.

“Families visiting our resorts will enjoy savings on Day Visits and children’s meals across a range of our dining venues during the campaign period.”

Today: Enjoy a sunny lunch at Drylaw Neighbourhood Centre

☀️ A little taste of sunshine is coming your way this Monday! ☀️

With the sun hopefully shining, we’ve got a lovely sunny lunch planned for you all.

Join us for a delicious Italian lemon spaghetti with garlic bread, followed by some homemade banana muffins for dessert.

🍽️ Lunch is served 11:30am – 12:30pm

You’re welcome to sit in and enjoy a chat, or grab a takeaway to enjoy at home.

Free for everyone – we’d love to see you!

And don’t forget, breakfast is on as usual too! ☕🥐

Hot rolls and drinks from 9:00am – 10:30am