Burnham’s cost-of-living steps welcomed, but disabled campaigners say he must do much more

Disabled campaigners have welcomed Andy Burnham’s first major policy decision – to temporarily scrap VAT on electricity bills – but say he must do much more to address disability poverty.

In his first speech as prime minister, outside No 10 on Monday, Burnham said he wanted to “do something to give people some breathing space now, some help with the cost of living”.

He revealed the following day that this would partly be through removing VAT – currently at five per cent – from domestic electricity bills from October.

This is expected to cut bills for an average household by £45 a year, although it is only funded so far until April 2027.

The commitment lasts until April, with further cost-of-living measures expected to be announced at the budget later this year by the new chancellor, John Healey.

Burnham said on Tuesday: “Westminster has not been working for people for too long, with families struggling with the cost of living.

“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as prime minister.

“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”

Yesterday, Burnham (pictured) also announced a new £2 cap on single bus tickets in England, outside London, from 1 January until 31 December 2027.

The cap will replace the existing £3 cap and will cost about £400 million.

But the disabled people’s organisation Difference North East has called on Burnham to go further on bus fares.

In an open letter to the new prime minister, it called on him to follow the example he set as mayor of Greater Manchester and remove “unnecessary” time restrictions on disabled people’s concessionary bus passes across England.

Many areas of England only allow free bus travel through concessionary passes after 9.30am.

Dr Christopher Hartworth, director of DNE, said in the letter to Burnham: “You know first-hand what a practical difference [removing the restrictions] makes to disabled people, making it easier to get to work, education, healthcare, volunteering and everyday life.

“We’re campaigning for disabled people in the North East to have the same opportunities.

“The Department for Transport has confirmed that the powers already exist to make this change.”

He added: “You’ve spoken about wanting government to improve people’s everyday lives.

“Disabled people are facing many challenges at the moment, but this is one practical change that could do exactly that.”

Fazilet Hadi, head of policy for Disability Rights UK, said: “The first two years of the Labour government have seen a worsening of living conditions for millions of disabled people, including spiralling costs of food, energy and housing, actual and proposed cuts to social security payments, increased rationing and charges for social care and a crisis in the Access to Work scheme.

“Andy Burnham offers hope of a reset, particularly given his experience of working with disabled people and DPOs* in Greater Manchester.

“However, only time will tell whether his premiership puts Labour on a different path.”

She called for him to commit to work with disabled people to coproduce a cross-government, “transformational” and funded disability plan; and to abandon further proposed cuts to social security and prioritise “fairness over budget projections” in the review of personal independence payment.

She also called for Burnham to set up a new National Care Service; abandon the government’s special educational needs reforms; and stop the rationing of the Access to Work scheme.

Tressa Burke, chief executive of Glasgow Disability Alliance, welcomed Burnham’s tone on cost-of-living issues and the removal of VAT from electricity bills.

But she said: “We look forward to hearing about further measures which will benefit people living in poverty which would include reversing the punitive and illogical approach being taken to disability benefits.

“Disability benefits recognise the extra costs many disabled people face and help ensure those costs do not become barriers to everyday life.

“They can also often support disabled people to be in work.

“We would urge the new PM to focus on how we can support people through adequate disability benefits, fair and accessible work and wider supports which are much needed at this time.

“We all benefit when people have the security to participate in work, family life and their communities.

“Financial security helps people focus on living their lives rather than constantly managing hardship and so the tone and direction being set by the new PM is welcome at this early stage.”

*Disabled people’s organisations

Picture by Lauren Hurley/No 10 Downing Street