Money Wellness
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calendar icon31 May 2024

Labour sets out plans to cut energy bills for good

If elected on 4 July, Labour has pledged to drive down energy bills.

Keir Starmer explained the party will achieve this by launching a publicly owned energy company.

He vowed Great British Energy will get working within months of a Labour victory to build clean power across the UK.

The company’s early investments will include wind and solar projects up and down the country. And the long-term plan to to make Scotland a world leader in cutting-edge technologies, including:

  • carbon capture and storage (a way to cut CO2 emissions produced during power generation)
  • hydrogen
  • floating offshore wind

The investment will be paid for through a windfall tax on big oil and gas companies.

Current state of play in the UK energy market

Energy prices have risen twice as fast in the UK as the European average during the Conservative’s time in power, according to Labour. The party says this has left us exposed to fossil fuel markets controlled by rogue states and dictators.

A recent warning from the Office for Budget Responsibility said remaining dependent on the international market left UK households vulnerable to another energy crisis and soaring prices.

Over the last two years, an average family has paid £1,880 more than the preceding years.

Labour pointed out the government also gave energy companies £94bn, despite the fact they were enjoying record profits.

‘Bone-headed opposition’

Ed Miliband, Labour’s energy security and net zero secretary, said:

“Great British Energy will kickstart our missions for clean power to lower bills and boost our energy independence.

“It’s time to move on from the Tories’ bone-headed opposition to clean energy, for which British families are paying the price.”

Avatar of Rebecca Routledge

Rebecca Routledge

A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.

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