Tax banks to give some households energy bill cut, unions tell Burnham
By Iain Watson Political correspondent
Published 6 minutes ago
The leader of Britain’s trade unionists has told Andy Burnham the government should introduce a "social tariff", paid for by a bank surcharge, to help low and middle earners with their energy bills.
A Social Tariff Explained
A social tariff is a discount on bills based on household income, and the TUC believes two-thirds of households could benefit. The union estimates that reversing the bank surcharge, which was reduced from 8% to 3% in 2023, would raise £9bn over four years.
TUC Leader’s Perspective
Paul Nowak, TUC general secretary, said, "I think it will appeal to the prime minister. These are policies that make a difference in the real world and people can see a value in them."
Priorities for Burnham and Healey
Nowak outlined several "asks" for the new Prime Minister Andy Burnham and Chancellor John Healey, with the top priority being more assistance with energy bills: "We need to drive down inflation – those energy bills are fuelling inflation. And millions of families up and down the country are worried about turning on their heating this winter."
Existing Measures and Potential Challenges
Burnham has already introduced temporary measures, such as scrapping VAT on electricity bills from October. However, UK Finance, representing banks, argues that heavier levies could undermine growth and international competitiveness.
Nowak counters this concern: "I can’t believe banks would leave the UK just because we are restoring the surcharge to where it was in 2023. Bank share prices have risen faster here than in New York."
Additional Tax Measures
The TUC also advocates for:
- A windfall tax on social media companies.
- Equalizing Capital Gains Tax with income tax.
These proposals come from Lord O’Neill, a former minister and advisor to Burnham, who has expressed skepticism about wealth taxes. Nowak disagrees, stating, "With respect, I think he is wrong… It is right to ask those with broader shoulders to pay a fairer share."
