Andy Burnham, on his first full day as UK prime minister, directed his newly formed cabinet to explore "all possible ways" to reduce the cost of living for British households. Burnham declared his would be a "cost of living government" and announced the removal of VAT from electricity bills starting 1 October, cutting the electricity price cap by £45 at a cost of £850 million. However, questions have emerged over how his broader policy pledges will be funded, with a minister noting that the digital ID scheme Burnham cited as a funding source had not yet been allocated money, leaving difficult budget decisions ahead.