Energy bill support will be ‘eaten up’ by price cap increase, Tories claim
Shadow energy minister Andrew Bowie said the Government’s response to Ofgem’s rise in the energy cap is ‘a sticking plaster approach’.
Government support to help with rising energy bills will be “immediately eaten up by the increase in the energy price cap”, the Tories have claimed.
Shadow energy minister Andrew Bowie said the Government’s response to Ofgem’s rise in the energy cap is “a sticking plaster approach” to increasing energy bills.
The energy regulator increased its price cap for a third consecutive quarter, equating to £111 for an average household per year.
Energy minister Miatta Fahnbulleh said it was “unwelcome news” but added that the Government would be supporting nearly three million more families through the warm home discount scheme.
She told MPs: “The warm homes discount currently gives around three million families £150 pounds rebate on their energy bills.
“The current system provides help to those on means tested benefit, but excludes millions of people in homes not classified as hard to heat as a result of criteria introduced by the last government in 2022.
“This criteria is seen by many as arbitrary and unreliable. It means there are families in almost exact same circumstances, with some receiving help, and others not.
“Today, we have announced we will consult on proposals to abolish this restriction, meaning all households receiving means tested benefit would be eligible for the bill support next winter.”
Ms Fahnbulleh also said the Government would be introducing a debt relief scheme for energy debt and half a billion pounds of funding to invest in home upgrades such as new insulation, double glazing or solar panels.
She added: “As Ofgem CEO Jonathan Brearley said today, our reliance on international gas markets leads to volatile wholesale prices and continues to drive up bills.
“This week marks three years since Russia’s invasion of Ukraine, and once again, the British people are paying the price of our country being exposed to fossil fuel markets controlled by petrol states and dictators.
“The truth is, every day we remain stuck on gas is another day families, businesses, and indeed, the public finances are at risk from these kinds of price spikes.
“That is why sprinting to home brewed, clean energy is the only way to end our exposure and our vulnerability as a country.”
Mr Bowie said the additional support would not be felt as a result of the rise in the price cap.
He said: “Today the Government has announced an expansion of the warm homes discount, a change to the criteria which will see more low income households receive a £150 payment to heat their homes, but for many, this payment will be immediately eaten up by the increase in the energy price cap.
“We must be clear, the best protection for vulnerable households is to prioritise cheap energy. The announcement today is frankly a sticking plaster approach to rising energy bills.
“This Government fails to grasp the core issue. Our energy costs in this country are far too high for businesses, for industry, and, of course, for bill payers.
“When the energy price cap rose in 2022 the now Secretary of State (Ed Miliband) called it a national emergency. He called for an urgent freeze on energy bills. He called it a lack of leadership.
“Now in Government, the only thing he’s able to freeze is vulnerable pensioners by taking away their winter fuel allowance with no notice.”
He added: “The worst part of all this is that this Government led by ideological zealotry from the Secretary of State is doubling down on their obsession with going further and faster than any country in the world to meet their own self imposed 2030 target is going to increase people’s bills even further.”
Ms Fahnbulleh said the Tories spent their time in Government “squandering the opportunity to accelerate the transition to clean power”, adding that “the status quo is not tenable”.
She said: “Now that is the status quo that we are not willing to contend with, and that is the very reason, not because of ideology, but because we see the obvious.
“As long as we are dependent on global fossil fuel prices, we will be on this roller coaster, and that is the thing that is driving the push to clean power.
“The party opposite has no alternative. We have a clear alternative. We run to clean power, but whilst we do that, we provide support to the most vulnerable households in the short term.”
