Lib Dem plan to slash energy bills

8 June 2026

The Liberal Democrats have today set out a plan to cut energy bills by £100 for the average household, helping to tackle the cost of living crisis.

Lib Dem Victoria Collins, MP for Harpenden and Berkhamsted, has backed the party’s plans for an "Essential Energy Guarantee." 

It would see every household receive a basic energy allowance, equivalent to 50% of average energy consumption, at a discounted rate, helping with the cost of everyday essential energy needs like heating, lighting, and running medical equipment.  

This is the newest part of a package of common-sense policies put forward by the Liberal Democrats: ensuring all new homes are zero carbon, a new home insulation upgrade programme, breaking the link between electricity and gas prices, and removing the renewables obligation levy. Overall, the party's plans would halve energy bills for families in the next decade. 

According to House of Commons Library data, 7,9% of local households in Harpenden and Berkhamsted are in fuel poverty, struggling to afford their most basic energy needs. This intervention would save the average household £100 a year, while the poorest 20% would save an average of £140.

Families would receive extra allowances for children, and the most vulnerable - such as people with disabilities or on the lowest incomes would receive the discounted rate on all their energy use.

The scheme will be funded by clawing back £5 billion in unexpected windfall profits from monopoly energy network operators.

Liberal Democrat Victoria Collins MP for Harpenden and Berkhamsted said:

"It’s a national scandal that 3171 households in our area worry every day about keeping their homes warm.

"For too long, consecutive Conservative and Labour governments have relied on short-term solutions. The Liberal Democrat plans for an Essential Energy Guarantee is a permanent fix that ensures nobody has to choose between heating and eating, saving the average household in my constituency £100 a year. 

"We would force energy network monopolies to pay back their billions in unexpected profits to fund this support. I challenge Labour's leadership contenders to back our proposal and finally give families in Harpenden and Berkhamsted the long-term energy security they deserve."