Burnham appoints new energy secretary and cuts energy bills

Miatta Fahnbulleh has been appointed Secretary of State for Energy Security and Net Zero, taking charge of the department on 20 July 2026 following a Cabinet reshuffle by new British Prime Minister Andy Burnham.

Fahnbulleh succeeds Ed Miliband, who has moved to the role of Foreign Secretary. She previously served as a junior minister at the Department for Energy Security and Net Zero before joining the Ministry of Housing, Communities and Local Government in 2025.

The MP for Peckham in south London enters the role at a pivotal time for UK energy policy, with the government seeking to accelerate clean power deployment, strengthen energy security and expand investment in low-carbon technologies. 

As Energy Secretary, Fahnbulleh will oversee policy areas including renewable energy, nuclear power, electricity networks, hydrogen, carbon capture and storage, and the UK's wider net zero strategy.

Prior to entering Parliament in 2024, Fahnbulleh was chief executive of the New Economics Foundation and previously held senior policy roles at the Institute for Public Policy Research (IPPR) and the Cabinet Office. She studied philosophy, politics and economics at the University of Oxford before completing a PhD in economic development at the London School of Economics.

Pivotal moment

Fahnbulleh’s appointment was heralded as particularly timely by Make UK, the manufacturers' association. Director of policy and public affairs Verity Davidge said: “We congratulate Miatta Fahnbulleh on her appointment as Secretary of State for Energy Security and Net Zero at a pivotal moment for manufacturers. Energy costs remain one of the biggest barriers to investment, competitiveness and decarbonisation, and industry will want to see urgent action to bring bills closer to those faced by our international competitors.

“Manufacturers are ready to play their part in delivering the UK’s net zero ambitions, but they need a policy framework that supports investment rather than adding cost and uncertainty. Accelerating grid connections, reducing non-commodity costs and ensuring electricity prices are internationally competitive must be central priorities, alongside ensuring the British Industrial Competitiveness Scheme is brought forward and widened to all manufacturers.

Davidge added: “We look forward to working with the new Secretary of State to ensure manufacturers can invest, grow and decarbonise here in the UK.”

Energy-tech enthusiasm

Burnham’s new cabinet appointments also generated a positive response from some parts of the energy technology industry. Discussing the broader context, David Hall, president of UK & Ireland for Schneider Electric, said: “Energy security must be at the top of the new government’s agenda. Bringing down bills for households and businesses requires resilience to be built into the heart of our energy system. 

"That means maintaining momentum towards Clean Power 2030 and accelerating electrification to unlock the full potential of affordable, homegrown renewable energy while reducing our dependence on volatile fossil fuel markets.”

Hall advised: “The new government should adopt a coordinated approach that aligns infrastructure investment, energy demand, market signals and skills development to accelerate delivery. There is no time to waste. 

"By taking decisive action now, we can build an energy system that lowers emissions, strengthens energy security, supports high-quality jobs and drives economic growth in every part of the UK.” 

VAT removal response

There has also been a – more mixed – reaction to Burnham’s other big announcement of the day: an £850 million tax cut on electricity bills – achieved by scrapping VAT – that will save a typical household £45 a year. The cost of this immediate action for this financial year (taken before the next price cap) is being funded from the cancellation of the (£1.8 billion) Digital ID programme.

For Nigel Pocklington, CEO of the UK green energy firm Good Energy, the news was welcome but tempered by a request to focus on British business as well as households. "Any step that helps lower energy bills is welcome, particularly ahead of winter when many households will be facing higher heating bills. Removing VAT from electricity bills will provide some immediate relief, and it's a positive sign that bringing down energy costs is one of Andy Burnham's first announcements.” 

"It's also important to recognise that today's measures will do little for many businesses, which continue to face high energy costs that hold back investment and growth. Supporting British businesses through lower, more stable energy prices must be an equally important part of the Government's growth agenda. 

Pocklington added: "The government should now take remaining policy costs off electricity bills and into general taxation, while providing additional support for those really struggling with their bills this winter. Together, these reforms would allow households and businesses to benefit much more quickly from Britain's growing supply of homegrown renewable energy, delivering lower bills, greater energy security and the conditions needed for long-term economic growth." 

Household debt

Similarly to Good Energy, Energy UK, the trade association for the industry, also welcomed the news with a call to focus on the important next steps. Energy UK Chief Executive Dhara Vyas said: “It is very welcome that the new Prime Minister’s first policy announcement is a move to cut energy bills. 

“Household energy debt is at a record high and the wholesale gas price has increased by over 40% in the last two weeks alone, which will likely put further pressure on customers this winter. This policy is a quick and simple way to provide some much-needed relief for customers.”

Vyas also pleaded for greater equality in the energy debate. “The next step must be to look at how other costs on the bill can funded more fairly, and taking action to help customers who most need support. Businesses as well as households urgently need help with bills. As part of this, making electricity cheaper in relation to gas is crucial for encouraging the adoption of clean technologies across our homes, transport and businesses,” she stated.    

For climate change think tank, E3G, the VAT cut doesn’t go far enough. Ed Matthew, UK programme director, explained: "Energy bills are surging again due to another fossil fuel supply crisis, this time triggered by the war in Iran. 

"The temporary cut in VAT on electricity bills is welcome, but the only way off this energy bill rollercoaster is to power our economy and homes with clean, British renewable energy. This means the government needs to go further and remove all the hidden taxes from electricity bills. This would save households over £200 every year and cut electricity costs by 20% for business. This is the key to tackling the cost-of-living crisis and re-booting the UK economy."