Despite welcoming Burham’s plans, Consumer Scotland said that it wants to see more steps being taken to tackle affordability issues facing households.

Consumer Scotland chief executive Sam Ghibaldan, said: “This announcement is welcome at a time when many households are struggling to pay their fuel bills.

“However, there remains a strong case for more targeted support for households alongside wider action to tackle the growing burden of energy debt.

“We strongly recommend both UK and Scottish governments continue to work with us and other key bodies to develop policies that will help households struggling most with the cost of living.”

Ghibaldan added: “In the longer term, reducing the cost of electricity is central to encouraging consumers to participate in the energy transition by reducing the running costs of low carbon technologies such as heat pumps and supporting consumers to move away from volatile fossil fuels.”

CAS also felt that further measures to tackle affordability issues are needed. CAS director of impact David Hilferty, said: “Action to remove VAT from electricity bills is welcome. 

“What needs to follow is action at scale that provides real breathing space in what feels like a never-ending cost-of-living emergency.”

Hilferty added: “That means bold and lasting change such as an affordable social tariff and faster progress on the energy debt relief scheme. 

“It’s long past time to rewire the energy system so that everyone can afford to keep the lights on and their homes warm.” 

The CIH concurred that whilst the move shows promise there needs to be additional strategies in the pipeline to address affordability challenges for households.

In response to the Prime Minister’s announcement, the CIH said: “This is a positive first step that demonstrates serious intent to tackle the cost of living while making cleaner heating cheaper to run. 

“Alongside this, more action will be needed to address the scale of the challenges many households continue to face, including high energy bills and growing energy debt.

“We hope to see bold measures in the Autumn Budget to reduce energy costs further, support those struggling most with energy affordability and accelerate the transition away from fossil fuel heating.”

The CIH added: “Making homes warmer, healthier and cheaper to run must remain a central part of the government’s approach to tackling fuel poverty and improving living standards.”

Independent Age, which is a UK charity that supports older people experiencing financial difficulties, felt that the move was significant but also said that their needs to be changes in the energy social tariff. 

Independent Age chief executive Joanna Elson, CBE, said: “Today’s VAT cut to electricity bills is an important and welcome acknowledgement that immediate action is needed to drive down energy costs. 

“We hope the removal of the 5% VAT charge from October – reducing the typical annual bill by around £45 – signals the start of sustained action by the new Prime Minister to ease the relentless financial pressures on older people living on low incomes.”

Elson added: “We are already hearing from older people on low incomes who are rationing their energy use or cutting back on the essentials, and that’s before the winter months take hold when energy use increases.

“If Andy Burnham is to make good on his pledge to ease the cost-of-living pressures and help millions of older people living in poverty, we urge him to go further and lead his government to increase the Warm Home Discount from £150 to £400 without adding the cost to energy bills and develop a more comprehensive energy social tariff for people of all ages on low incomes.”