The new PM says he will look at how much people can earn before paying tax but admitted changing it would be difficult.

In one of his first moves as Prime Minister, Andy Burnham has announced that VAT will be cut from household electricity bills, as part of his pledge to help with the cost of living. The policy came a day after Burnham, in his first speech as prime minister, promised to give people more "breathing space" to help with their finances. The new PM has also said he will be "looking at" the tax-free personal allowance ahead of his first Budget in the autumn. Cost of living is a key issue for Burnham. Many people, he has previously said, can't go out for a pint on a Friday, can't take the kids out and can't go on holiday owing to the pressure on their finances. The cost of living has dominated people's lives in recent years, and - to some extent - our politics too. Easing that pressure hasn't been easy. If Burnham plans more support in the form of transport costs and allowing people to earn more before being taxed, and makes care and somewhere to live more affordable, he'll face tough choices on funding those moves and managing the trade-offs that come with them. And his new chancellor, John Healey, will be the one who has to deliver any changes, and outline how to pay for them. A prime minister saying every minute not talking about the cost of living is "a wasted minute". A chancellor saying it is the "number one focus".