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Households in Rented Homes to Save Up to £587 Annually on Energy Bills by 2030
8 Nov
Summary
- Measures could reduce typical household fuel bills by £178 per year by 2030
- Families in rented, inefficient homes could save up to £587 annually
- Government urged to remove renewables subsidies and improve efficiency standards
According to a report published on November 8th, 2025, a think tank has urged the UK government to take immediate action to lower energy bills and tackle the ongoing cost-of-living crisis. The Green Alliance says a package of measures could reduce the typical household fuel bill by £178 a year by 2030, and provide much higher savings of up to £587 for families renting draughty, inefficient homes.
The think tank recommends the government cut energy bills by removing renewables subsidies, reducing system costs, and implementing efficiency standards for landlords. They argue that while the government has recognized the need to bring down costs, measures like cutting VAT on energy would be a "forever more move" that would be politically difficult to reverse.
Instead, the Green Alliance proposes using the £2.3 billion the VAT cut would cost to remove some green levies, such as feed-in tariffs for household solar power and subsidies for early clean electricity projects. This, they say, would give greater savings to those who rely on direct electric heating, often lower-income households in deep fuel poverty.
The think tank also calls for the government to implement a private rental sector minimum energy efficiency standard equivalent to Energy Performance Standard (EPC) C by 2030, which they say would be "crucially important for lifting huge swathes of households that are currently experiencing fuel poverty out of it."
