More than 120 organisations, including Energy UK, the CBI, End Fuel Poverty and Age UK, have written to the chancellor urging him to remove "hidden taxes" from energy bills, arguing this would ease the cost-of-living crisis and stop businesses closing. The letter calls for levies that fund government policies, currently making up around 10% of bills, to be paid for by the Treasury instead of consumers, ahead of John Healey's first budget on 28 October.

The signatories want funding for renewable energy projects, nuclear power plants, the warm homes discount scheme and the feed-in tariff programme moved off bills entirely, saying this could cut average household bills by up to £250 a year and reduce business electricity prices by 20%. The letter notes UK energy bills are 70% higher than in 2021, with Cornwall Insight forecasting a further price cap rise to £1,872 annually in January amid pressure from the Iran war on wholesale prices. It follows Rachel Reeves's move last year to shift 75% of levy funding onto general taxation, and comes as the government faces scrutiny over its pledge to cut bills by £300 by 2030.