Rachel Reeves’ energy bill cut divides opinion among Salford shoppers

Shoppers in Salford have reacted to Rachel Reeves’ budget after she pledged to reduce the average annual household energy bill by £150.

She has committed to scrapping the Energy Company Obligation, which forces energy companies to pay for measures like insulation and new heating systems for low-income households in 2026.

ECO is paid for through a levy on bills, and Labour say ending it will save Salford households hundreds annually.

At Salford precinct, shopper Oliver Shorter, 21, was reluctant to celebrate the decision. He said: “t sounds like a good idea on paper, but I feel the Labour Party aren’t exactly doing what they promised to do.”

Oliver also questioned how the government will finance this during a time of economic crisis  

“I know they’re trying and it is a quite hard situation that they are in. But more could be done across the level.”

A 75-year-old shopper, who wished to remain anonymous, expressed concern about the governments priorities.

They said:  “I think they’re putting money into the wrong things. Food bills are going up, gas electric, water. 

“My gas and electric bills come in at about £1,500 a year, £150 off that is a pittance.” 

Reeves plans on helping families which are struggling with the cost-of-living crisis which is why they have decided to provide people with aid by cutting bills. 

Their main way to help struggling families is the move to take £150 off energy bills and poorer households will be able to receive a reduction of up to £300. 

Liam Purcell, chief executive of Church Action on Poverty who works with people in Salford, stated: “The cost-of-living scandal has swept millions of people into deep hardship, and news that some bills might finally come down will naturally be a relief to low-income householders. 

“Removing the green levies from householders’ bills in the short term must not, however, mean a weakening of the national commitment to accelerate the move to affordable, clean energy. 

“Environmental justice and economic justice go hand in hand, and national procrastination on the bigger decisions will make it much harder to make more significant progress in lowering householders’ bills further, and reforming the broken energy system.” 

Find out more about the budget here.