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TUC backs a UK social tariff funded by a bank surcharge reversal

The union estimates the restored bank surcharge would raise £9bn over four years to discount energy bills for low and middle earners.

Reported · Written up by our desk · Trade & Tariffs

Britain's trade union movement has urged the government to introduce a so-called social tariff to cut energy bills for lower and middle income households, with the plan funded by reversing a bank surcharge reduction made in 2023, the BBC reports.

According to the TUC, a social tariff would discount bills based on household income and could extend support to two thirds of households. The TUC estimates restoring the surcharge would raise £9bn over four years.

TUC leader Paul Nowak told Labour prime minister Andy Burnham that next month's Budget should demonstrate the government is focused on households' finances, arguing that high energy bills are still fueling inflation.

The BBC reports that UK Finance, which represents banks and lenders, warned that heavier bank levies could undermine growth goals and hurt international competitiveness, while Nowak pushed for additional tax changes including measures aimed at capturing wealth more effectively.

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