• 36 cross-party parliamentarians, including 9 Labour MPs, sign open letter urging action to cut bills
• Signatories ask Chancellor to move social and environmental levies to off electricity bills in Autumn Budget
• This move could save as much as £300 annually, meeting the Government’s pre-election commitment, benefiting the most vulnerable

12 November 2025 (London): 54 MPs, MSPs, Peers, and charities have today called on the Chancellor Rachel Reeves to cut the cost of electricity in the Autumn Budget by moving social and environmental levies off electricity bills (1).

In an open letter, nine Labour MPs have joined parliamentarians from seven parties to warn that Britain’s high electricity prices are disproportionately impacting the poorest and most vulnerable – in large part due to levies that were originally

Households reliant on direct electric heating (such as electric radiators and fan heaters) are more likely to be in fuel poverty – yet a far higher proportion of their income goes toward social and environmental levies, the letter states.

Research commissioned by The MCS Foundation found that moving these levies off electricity prices could save households up to £300 on their bills. Dual fuel customers would save an average of £130 annually.

The letter’s signatories say that, with energy bills now ranking as the public’s most worrying household expense, the Chancellor has “no time to waste” in cutting the cost of electricity.

Garry Felgate, CEO of The MCS Foundation, which coordinated the letter, said, “Every household in the UK needs access to secure, affordable electricity – nobody should be forced to choose between heating and eating this winter. Cutting the cost of electricity by moving social and environmental levies would not only be a significant step towards ensuring this isn’t the case – it will also see progress toward the Government meeting the pledge made just last year to cut energy bills by £300.

“In the Autumn Budget, the Chancellor has an opportunity to implement fair reforms that will go a long way towards helping millions of households by cutting the cost of electricity.”

Further information from:

Jamie Osborn, Communications and Media Manager

[email protected] | 07975 881585

Notes to editors

1. The MCS Foundation advocates moving social and environmental levies off electricity bills into general taxation. Government support for social and environmental tariffs is vital in tackling fuel poverty, decarbonising heat and retrofitting homes. It is essential that these social and environmental tariffs  continue and thrive, but are funded through general taxation, not through electricity bills. We strongly advocate that no reduction or cuts should be made to these schemes https://www.theguardian.com/uk-news/2025/nov/04/chancellor-considers-cut-green-levies-reduce-cost-of-energy-bills-rachel-reeves

The full text of the letter is below:

Dear Chancellor,

Subject: Use the Autumn Budget to lower electricity prices 

The cost of living crisis is still hitting millions of households across Britain. Prices remain high, and the latest rise in the Energy Price Cap will only make things worse.

The public wants to see action to reduce energy bills, which now ranks as the most worrying household expense amongst the population. 

Britain has some of the highest electricity costs in Europe. A significant factor in keeping prices high is the social and environmental levies placed directly on households’ electricity bills. These levies make up 18% of a typical household’s electricity bill and disproportionately affect the most vulnerable. 

Households reliant on direct electric heating, such as electric radiators and fan heaters, are more likely to be in fuel poverty – yet they pay a far higher proportion of their income funding social and environmental levies.

Research from The MCS Foundation shows that moving these levies off electricity prices could save households, including those on direct electric heating and those with heat pumps, up to £300 on their bills. 

Reducing the cost of electricity has the dual benefit of tackling fuel poverty while providing a significant financial incentive for households to electrify – a necessity for tackling climate change and meeting our net-zero obligations. 

Social and environmental levies were introduced to raise revenue to support those in fuel poverty and boost renewable energy. While these areas are still in critical need of funding, retaining levies on electricity is now running directly counter to these initial aims, by disincentivising the switch away from fossil fuel heating.

While we appreciate that there are political and economic challenges that must be overcome, we believe now is the time for bold action. We urge you to use the Autumn Budget to reduce bills and incentivise electrification. There’s no time to waste.

Yours sincerely,

The MCS Foundation

Adrian Ramsay MP

Afzal Khan MP

Ambient

Angus MacDonald MP

Ariane Burgess MSP

Baroness Buscombe

BEAMA

Caroline Voaden MP

Centre for Net Zero

Christine Jardine MP

Delyth Jewell MS

Earl Russell

Electrical Contractors’ Association (ECA)

Elena Whitham MSP

Ellie Chowns MP

Emma Harper MSP

Energy Savings Trust

Gideon Amos MP

Graham Leadbitter MP

Ground Source Heat Pump Association (GSHPA)

Heat Pump Association

Heat Pump Federation

Helen Maguire MP

James Naish MP

Joshua Reynolds MP

Lindsay Whittle MS

Lord Morrow

Lorraine Beavers MP

Luke Myer MP

Max Wilkinson MP

Michael Matheson MSP

Michelle Thomson MSP

Noah Law MP

Patrick Harvie MSP

Paul McLennan MSP

Paul Sweeney MSP

Peter Prinsley MP

Power for People

Regen

Rhys ab Owen MS

Roz Savage MP

Simon Opher MP

Sioned Williams MS

Skipton Building Society

Solar Energy UK

Steve Darling MP

Tepeo

Terry Jermy MP

The Association for Decentralised Energy (ADE)

The Electric Car Scheme

Toby Perkins MP

UKGBC

UK100

About the MCS Foundation

The MCS Foundation oversees the consumer protection scheme for heat pumps, solar panels and other renewable technologies, as an independent body novated by Government in 2018. We hold certified data for domestic renewable energy installations, commission research, and campaign for wider uptake of renewable energy, to drive a carbon-free future for all UK homes. https://mcsfoundation.org.uk/