A thinktank has proposed that every UK household should receive a minimum amount of energy at subsidised rates as part of a wider effort to bring down rising bills.
The New Economics Foundation says the support should be funded through North Sea taxes and should give households enough energy to heat two rooms, provide hot water and run essential appliances such as a fridge and washing machine.
Under the proposal, the subsidised allowance would be set at current price levels. The thinktank estimates that the policy would cost about £4.5bn.
The idea is intended to help households avoid falling further into debt as energy costs remain a strain for many people. By guaranteeing a basic amount of energy at lower rates, the proposal aims to protect homes from the sharpest effects of higher bills while preserving access to essential day-to-day use.
The suggestion comes as energy affordability continues to be a concern across the UK, with many households still facing pressure from elevated living costs. The New Economics Foundation argues that a universal minimum energy allowance could offer direct relief and a clearer way to support everyone, rather than relying only on broader measures that may not reach those most in need.
According to the thinktank, the allowance would cover the basics needed to keep a home functioning: warmth in two rooms, hot water, and the power to operate key appliances. It is designed as a floor, not a full replacement for household energy use, meaning any consumption above that threshold would still be paid for at standard rates.
The proposal links the subsidy to North Sea taxes, presenting it as a way to finance support without placing the full burden on ordinary bill payers. The thinktank’s estimate of £4.5bn indicates the scale of public funding that would be required to make the scheme work at the level it describes.
As presented by the New Economics Foundation, the plan is a response to the ongoing challenge of energy poverty and a call for a more direct intervention in household bills. It would provide every home with a base level of subsidised power, regardless of income, while aiming to reduce the risk of debt and deprivation linked to the cost of keeping a home warm and usable.
