Tax banks to give some households energy bill cut, unions tell Burnham
The TUC is urging Prime Minister Andy Burnham to implement a 'social tariff' for energy bills, funded by increasing taxes on banks. While the TUC argues this would help struggling households, banking industry representatives warn that higher taxes could hinder economic growth.
Why it matters
The proposal highlights the tension between addressing the cost-of-living crisis and maintaining the competitiveness of the UK financial sector.
By Iain Watson Political correspondent Published 8 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 is a discount on bills based on household income, and the TUC says it believes two-thirds of households could benefit.
The TUC says the bank surcharge, which was reduced in 2023 from 8% to 3% by the then Conservative government, should be reversed - and estimates it would raise £9bn over four years.
TUC leader Paul Nowak 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."
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