Energy affordability is again becoming a major concern. The Resolution Foundation has proposed an emergency scheme that could cut annual energy bills by up to £175 for lower-income households this winter. The proposal comes as wholesale gas prices rise and concerns grow that higher costs could push more families into financial difficulty.

What is being proposed?

The thinktank suggests a targeted scheme costing around £2 billion. Support would be restricted to households where the highest earner takes home £24,000 a year or less. Around 40% of households could potentially qualify.

The scheme could be ready for the January 2027 energy price cap adjustment, with eligible households receiving a £175 reduction.

Key points include:

• Up to £175 off annual energy bills.

• Around 40% of househo ...