An announcement will be made on August 26 regarding an anticipated rise in the energy cap by over a thousand poundsThAccording to Ofgem, the Lib Dems called for the end of the energy price cap hike and went further than any other political party.
The energy price cap is the maximum amount that suppliers can legally charge customers in England, Scotland, and Wales. With a further increase expected in October, experts predict it will hit £3,615, compared to £1,400 in October last year.
Liberal Democrat Leader Ed Davey said: “This is an emergency, and the government must step in now.Energy bills have already gone up by £700 this year, and Conservative ministers have barely lifted a finger to help.
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“We simply cannot afford more inaction in the face of another even bigger rise in October.”
The Liberal Democrats claim that keeping the price cap at £1,971, its current level, will save the average household around £1,400 per year. The party have suggested that the cost of this so called ‘energy furlough’ will be £36 billion per year.
The party suggested that windfall tax on profits from oil and gas companies could fund this. The current windfall tax is set to last 12 months and is expected to raise £5bn, but the party claim that the measure has potential to raise £20bn if it was increased to 30% and backdated to October 2021.
Earlier this week, former Prime Minister Gordon Brown said that millions would be pushed “over the edge” if the government does not address the cost of living crisis, and that something must happen as a matter of urgency.
Suggestions that Boris Johnson or the two candidates for his position should issue a broad statement before August 26Th when Ofgem is expected to announce The energy price rise is increasing by over a thousand pounds, this morning received further support from the Director General of the CBI. Speaking on the BBC Radio 4 ‘Today programme’ this morning, Tony Danker said “I just don’t think that it is responsible government for a prime minister or future prime ministers not to give the country reassurance for 10 days, possibly three weeks”.
Mr Danker who was himself a policy advisor to the British government between 2008 and 2010, said, “Civil servants should be working with the candidates now, to make sure that on September 5th we get the answers, not we get an announcement of possible answers in 10 days time. That happens during a general election. I don’t know why we don’t have civil servants working wiTh both candidates to get plans ready to be announced on September 5th”.
Last night, the former chancellor Rishi Sunak said he would cut an average of £160 off bills by temporarily scrapping VAT.He also vowed to use the same support plan he set out earlier this year to help those hit hardest by increasing energy bills.
He says that the original support package, including a universal payment of £400 and extra means-tested payments for those on benefits, will be extended. Sunak quashed concerns of rising debt and claimed he would keep borrowing to a minimum by using “efficiency savings across Whitehall.”
In response, the Truss campaign have branded Sunak’s new plans as “another big U-turn,”, asking “How is he going to fund these new promises? Three weeks ago, he stated that more borrowing was irresponsible. Is he still the same person? Intellectually it’s as watertight as a sieve.” Ms Truss herself has been campaigning on the basis of a ‘tax cutting’ emergency budget.
Today Liz Truss, Rishi Sunak, and Rishi Shah will appear at a Darlington hustings, where they will discuss the recent shift from Labour to Conservative under Boris Johnson.
In response to the proposal, a government spokesperson said: “We know the pressures people are facing with rising costs, which is why we are providing £37 billion of help for households.”
