The newly appointed Prime Minister Andy Burnham has made lowering energy bills his first policy priority, according to Reuters. The announcement, also covered by TradingView, marks a clear shift in Downing Street’s agenda. But what does this mean for the 19 million households still on standard variable tariffs, and for the landlords facing 2028 EPC deadlines?
What Burnham has, and hasn’t, said
According to Reuters, Burnham’s office confirmed that the Prime Minister has directed the Department for Energy Security and Net Zero to produce options for reducing household bills within 100 days. The statement did not specify a target percentage or a timeline for legislation. TradingView’s report added that the move is seen as a response to the cost-of-living crisis, but cautioned that no concrete policy has been tabled. The catch is that lowering bills while maintaining net-zero targets requires significant investment in grid infrastructure and home efficiency, costs that historically get passed to consumers.
What it costs a typical 3-bed semi
The average UK household spends roughly £1,800 a year on gas and electricity under the current price cap. A 10% reduction, plausible if Burnham pushes through a temporary VAT cut on energy or expands the Warm Home Discount, would save a typical 3-bed semi about £180 annually. But a more realistic scenario, given Treasury constraints, is a 3-5% cut through targeted social tariffs and expanded ECO4 funding, saving £54-90 a year. That’s not nothing, but it won’t transform household budgets.
Who qualifies, and who doesn’t
If Burnham follows through on hints in his campaign, the focus will be on low-income households and those in fuel poverty, roughly 13% of UK homes. Middle-income families on standard tariffs are unlikely to see direct relief unless a broader price cap reform is enacted. Landlords should pay close attention: tighter EPC deadlines (C by 2028 in Scotland, proposed for England) could force upgrades that cost £5,000-15,000 per property. The Boiler Upgrade Scheme currently offers £7,500 for heat pumps, but only to owner-occupiers. Burnham’s team has not confirmed whether that will change.
What this means for grants and EPC ratings
The Prime Minister’s focus on bills could accelerate the rollout of ECO4, which provides free insulation and heating upgrades for low-income households. But the scheme’s current budget of £1 billion a year is already oversubscribed. A meaningful expansion would require Treasury approval, which is far from guaranteed. For homeowners considering solar panels or heat pumps, the signal is positive but uncertain: grants may become more generous, but the timeline is unclear. The smart play is to get EPC assessments done now, before any rush inflates costs or waiting times.
Next steps for homeowners
If you’re on a standard variable tariff, check whether you qualify for the Warm Home Discount (you get £150 automatically if on Pension Credit, or apply if on low income). For those planning upgrades, the Boiler Upgrade Scheme is open until 2028, apply now to lock in the current £7,500 rate. Landlords should schedule an EPC assessment and budget for a C rating by 2028. And watch for Burnham’s 100-day report: if it includes a VAT cut on energy or expanded grants, act fast, application windows will likely be short.
Frequently Asked Questions
No. The 100-day review period means no changes before October 2026 at the earliest. Even then, any reduction is likely to be modest, around 3-10% for eligible households.
No. The current Boiler Upgrade Scheme offers £7,500 and is open until 2028. Waiting risks missing the grant or facing higher installer demand. Apply now.
Not directly, but the policy focus on bills may strengthen the case for enforcing EPC band C by 2028. Start planning upgrades now to avoid fines.
