New PM's First Week: What the Cost of Living Help Means for You

Andy Burnham has taken office as Prime Minister and is already rolling out measures aimed at helping British households with the cost of living crisis. Here’s what’s been announced in his first week — and what it could mean for your wallet.

Energy bills: A £45 annual saving

On day two of the new government, Burnham announced a cut to VAT on electricity bills. The government says a typical household will save around £45 a year. While some have questioned where the money is coming from, early feedback from southern households has been positive. As one Portsmouth mum told the BBC: “It’s £45 we didn’t have. I think it’s a start.”

If you’re struggling with energy costs, this saving should appear automatically on your bill — you don’t need to do anything to claim it.

Bus fares capped at £2

By day three, the PM had announced a cap on bus fares at £2 across the country. This is being funded by reprioritising existing government money. If you use buses regularly for commuting or getting around, this could add up to real savings over a month or year.

Help for pubs and small businesses

On day four, Burnham turned his attention to struggling businesses, announcing a 20% cut to business rates for pubs and small live music venues. While venue owners have welcomed this, some say it’s not enough — with rising VAT, minimum wage increases, and other pressures mounting.

What comes next?

The government has also opened “No 10 North” in Manchester, a new regional office focused on economic growth and devolution across the UK. This signals a shift in how government decisions may be made going forward.

What should you do?

Keep an eye on your energy bills to check the VAT reduction is applied correctly. If you use buses, look into season tickets or travel cards that might benefit from the £2 cap. And if you own a small business, check gov.uk for details on the business rates relief scheme.

For more information on government support, visit gov.uk or contact Citizens Advice if you need help with cost-of-living support.