Trade unions urge UK government to reverse bank levy for £9bn energy bill relief
The TUC demands the reversal of a 2023 tax cut, projecting £9 billion revenue over four years to fund income-based energy discounts. Paul Nowak argues this social tariff is essential to curb inflation and assist millions of households facing winter heating costs.
Paul Nowak, general secretary of the Trades Union Congress (TUC), has told Prime Minister Andy Burnham that the government should introduce a social tariff. This proposal would discount energy bills based on household income, benefiting two-thirds of British families according to union estimates. The cost would come from a surcharge on banks. Current regulations reduced this levy from 8% to 3% in 2023, and the TUC estimates reversing the cut would raise £9 billion over four years. Nowak argues that high energy bills are fueling inflation, which creates a cycle of rising costs for consumers. In an interview ahead of the union's Brighton congress, he stated the upcoming Budget must demonstrate the government is serving the people again. While Prime Minister Burnham recently scrapped VAT on electricity as a breathing space measure, the TUC insists further action is required to support families concerned about winter heating.
