Burnham admits ‘we can’t faff around’ on reducing energy bills as he mulls scrapping standing charges
The energy secretary has remarked that Andy Burnham insists the government "can’t faff around" on reducing domestic energy bills, after being asked by the prime minister to explore abolishing standing charges on gas.
Miatta Fahnbulleh said she was considering "all the options," while acknowledging that poorer households using significant energy could be disadvantaged if these fixed costs are merely transferred to unit rates.
She noted, however, that the public "absolutely hates" having no say over fixed billing fees, arguing that "even shifting it into the unit rate gives people that agency".
Addressing reporters, Ms Fahnbulleh spoke shortly after Mr Burnham informed the Commons he had asked her and chancellor John Healey to investigate removing the charges and present their findings to MPs as soon as possible.
She told a Westminster press gallery lunch on Thursday: “I love working with him because Andy is very clear… in his mind about the sorts of things that he wants us to do, and he’s really impatient with change.
“And so, if you ask the department, ‘Oh, you know, standing charge reform’, they’re like, ‘Oh, we’d have to consult. This is a 10-year proposition’.
“And Andy’s like, ‘I want you and John to look at it and come back with an answer’. So we’re looking at the options.
“Now, the thing I do know is that the public absolutely hates standing charges, and it’s a control question.
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“People just find that really egregious, and their ability to manage their energy bills by deciding how much they want to use on their terms is essentially taken away from them.
“So, even shifting it into the unit rate gives people that agency.”
Ms Fahnbulleh said modelling suggested the move could reduce the bills of “a big stack of low-income through to middle-income households”.
“There are some people that will be impacted negatively because they are essentially low-income, high users, and so you need to think about mitigations. But we’re looking at all the options.
“But the thing that he is very clear on is we can’t faff around. We need to get on with this. So watch this space.”
Standing charges are a fixed daily fee added to energy bills, regardless of how much gas or electricity a customer uses.
The standing charge does not pay for the energy itself, but covers the cost of delivering gas and electricity to homes and businesses – including the cost of essential maintenance and infrastructure upgrades.
Campaigners have urged the government to make plans to support all households with energy costs this winter, with forecasters warning household bills could soar by almost another £300 from January.
Ms Fahnbulleh, who was appointed to head the energy brief by Mr Burnham in July, said making energy more affordable for households and businesses was her top priority.
“Candidly, we will win or lose the next election on our ability to make progress on the cost of living,” she said.
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