RACHEL RICKARD STRAUS: This is the one step Andy Burnham could take now to make us all richer and happier - and it wouldn't cost him a penny

I’m not going to turn up my nose at 5 per cent off my electricity bill from October, announced by Andy Burnham today. Households are going to need all the help they can get because bills look set to surge as the Iran war threatens to escalate again. They’re forecast to be higher this winter than last – even with the Prime Minister’s giveaway. Well-off households with large homes, those who like to keep their heating ramped up or who have swimming pools to heat will no doubt be especially grateful to Burnham as they’ll enjoy the biggest savings. But far from giving families ‘breathing room’, as Burnham hopes to achieve with the bill cut, for most it will barely touch the sides. The truth is the things that would really lighten the load are largely not in the Prime Minister’s power – at least for now. Reducing inflation would help – lower bills at supermarket checkouts and the petrol pumps. Households would feel instant relief to their budgets. Most of us know the cost of everyday items such as a litre of unleaded or a block of butter so would notice immediately if they fell. Andy Burnham during his first Cabinet meeting today... one of his first acts was to remove VAT from heating bills But inflation is influenced by global forces such as the Iran war and Bank of England policy – there’s only so much that Burnham can do. Boosting take-home pay would also help. In theory, Burnham could do this with a single sleight of hand, by cutting income tax or National Insurance or increasing the personal allowance. But he’d need to free up money elsewhere to fund a tax cut.  Every £100 increase to the tax-free allowance would cost the Treasury as much as £1billion a year, say experts. There are already questions about how the £850million energy bill cut will be funded – let alone finding more money for income tax cuts. But there is one thing that Burnham could do that wouldn’t cost him a penny – and could save households thousands of pounds and much anguish. He and new Chancellor John Healey need to bring forward their first Budget and announce it as soon as possible. Rachel Reeves pushed hers back to as late as November 26 last year, and it led to months of fear and speculation. ... but the new Prime Minister needs to reveal more of his plans as soon as possible to prevent the economy grinding to a halt as everyone puts their plans on hold, writes Rachel Rickard Straus The longer that Burnham leaves a vacuum in which we know tax raising is on the agenda but we don’t know where it’ll hit, the more damage he’ll do. Inevitably households and businesses will act out of fear over what could lie ahead. Or – just as damaging – put their plans on hold until they have greater clarity, grinding business investment, the property market and job moves to a halt. Revealing his plans as early as possible will give clarity and stability. That’s something all households will be grateful for, even if we don’t like what the Budget contains. If Burnham is hoping giveaways will win him popularity while putting off coming clean on his long-term plans, he can look to his predecessors for a cautionary tale. Liz Truss announced energy bill support worth up to £150billion – several times more than Burnham’s giveaway. She was still out of a job within days. Former Chancellor Rachel Reeves cut average energy bills by £150 in April – four months on and she’s gone. Burnham says he has a plan. He needs to tell us what it is, now. Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.