Burnham vows to shield households as inflation and energy bills rise

Andy Burnham has promised to do “what I can” to help households through increasingly difficult economic conditions after UK inflation accelerated and forecasts pointed to further pressure on energy bills.

Consumer price inflation rose to 2.9 per cent in July, from 2.6 per cent in June, marking its highest level since March. The increase came after a 13 per cent rise in the energy price cap lifted the typical annual gas and electricity bill by £221 to £1,862.

The outlook for households is worsening. Cornwall Insight expects the next quarterly price cap, covering October to December, to rise by a further 4 per cent when Ofgem announces the figure on August 26.

Burnham, speaking during a visit to the North East, attributed much of the renewed inflationary pressure to the Middle East conflict, which has pushed up energy and fuel costs.

“We can’t control though what is going on in the Middle East,” the Prime Minister said, while promising that the Government would act where it could to support households.

The inflation figures underline the increasingly difficult environment confronting Burnham just weeks into his premiership. Higher energy and petrol costs risk feeding into broader prices at a time when household budgets remain stretched.

The data also raised the prospect of a sharp increase in regulated rail fares next year. Retail Prices Index inflation, used in the annual fare-setting formula, climbed to 3.2 per cent in July from 3 per cent in June. If the Government applies the same formula used previously, regulated fares in England could rise by about 4.2 per cent in 2027.

Meanwhile, the Competition and Markets Authority opened investigations into Trainline, Virgin Atlantic and RED Driving School over concerns that customers were not being shown the full cost of services upfront.

Economists expect inflationary pressures to intensify as the Middle East conflict continues. Matt Swannell, chief economic adviser at the Item Club, said July’s increase could mark the beginning of a sustained rise in inflation through the remainder of the year.

With oil prices again above $90 a barrel, higher transport and energy costs are expected to feed through to consumers.

The Government’s challenge is now to demonstrate that Burnham’s promise of help can translate into meaningful relief without adding further pressure to the public finances.