“Andy Burnham is considering radical plans that could cut household energy bills by £130 a year and make running a heat pump cheaper than a gas boiler.

In his speech on Friday as he became the new Labour leader, Burnham promised to reduce the price of “essentials”, and a cost of living package is expected to be one of his first announcements in Downing Street.

The energy proposal, drawn up by the thinktank Nesta and being examined by Burnham’s team, would change the way household gas is charged and remove some policy levies from bills, at a cost of £3.2bn a year to the taxpayer.

Making electricity cheaper relative to gas would make running heat pumps a more attractive option, and shave £130 off average bills.”

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