Charities urge Chancellor to cut cost of electricity in Autumn Budget

12 November 2025

51 MPs, MSPs, Peers, and charities have called on the Chancellor Rachel Reeves to cut the cost of electricity in the Autumn Budget by moving social and environmental levies off electricity bills.

In an open letter, 10 Labour MPs have joined parliamentarians from all seven parties to warn that Britain’s high electricity prices are disproportionately impacting the poorest and most vulnerable – in large part due to levies that were originally designed to help low-income households.

Households reliant on direct electric heating (such as electric radiators and fan heaters) are more likely to be in fuel poverty – yet a far higher proportion of their income goes toward social and environmental levies, the letter states.

Research commissioned by The MCS Foundation found that moving these levies off electricity prices could save households up to £300 on their bills. Dual fuel customers would save an average of £130 annually.

The letter’s signatories say that, with energy bills now ranking as the public’s most worrying household expense, the Chancellor has “no time to waste” in cutting the cost of electricity.

Garry Felgate, CEO of The MCS Foundation, which coordinated the letter, comments:

“Every household in the UK needs access to secure, affordable electricity – nobody should be forced to choose between heating and eating this winter. Cutting the cost of electricity by moving social and environmental levies would not only be a significant step towards ensuring this isn’t the case – it will also see progress toward the Government meeting the pledge made just last year to cut energy bills by £300.

“In the Autumn Budget, the Chancellor has an opportunity to implement fair reforms that will go a long way towards helping millions of households by cutting the cost of electricity.”

The letter’s signatories recognise the challenges faced by the Exchequer, but argue that not only would moving levies off electricity bills benefit the most vulnerable, it would also help meet net-zero goals by incentivising the switch away from fossil fuel boilers to electric heat pumps. Some levies were introduced to fund the development of renewable energy infrastructure – a goal that remains essential – but experts including the Climate Change Committee argue that by raising the price of electricity these levies are now disincentivising the transition away from fossil fuels.