Two-thirds of UK families could be in fuel poverty by January, research finds

Estimated 45m people will struggle to pay energy bills this winter with predicted rises in price cap

Two-thirds of all UK households will be trapped in fuel poverty by January with planned government support leaving even middle-income households struggling to pay their bills, according to research.

It shows 18 million families, the equivalent of 45 million people, will be left trying to make ends meet after further predicted rises in the energy price cap in October and January.

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Labour to push energy price cap policy in campaign blitz

Party aims to get out message on plan to tackle cost of living before new Conservative PM enters No 10

Labour is planning a campaigning blitz in order to take ownership of its new energy price cap policy in case the next Tory leader bows to pressure and cancels the 80% rise expected in October.

Keir Starmer has vowed that his party “wouldn’t let people pay a penny more” on their gas and electricity bills this winter, proposing freezing the price cap at current levels and preventing the average household bill from reaching £3,600.

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Labour announces plan to freeze energy price cap with reinforced windfall tax

Keir Starmer says people won’t pay ‘a penny more’ and that plan would reduce inflation

Keir Starmer has put a beefed-up £8bn windfall tax on energy company profits at the heart of a new plan to stop people having to pay “a penny more” on fuel bills this winter.

The Labour leader confirmed that under his plan the energy price cap would be frozen at the current level, meaning that an expected 80% rise in October – taking an average household bill to about £3,600 – would not go ahead.

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Tory leadership: Sunak frustrated government attempts to realise benefits of Brexit, Truss allies claim – UK politics live

Latest updates: foreign secretary’s supporters accuse former chancellor of resisting changes to EU regulation as sixth hustings looms

Gordon Brown, the former Labour prime minister, has used an article in today’s Guardian to propose that the government should halt the increases in the energy price cap planned for later this year and next year and, if necessary, take energy companies into public ownership to ensure that they keep prices down.

Alongside the Lib Dem plan, with which it has some similarities (they also want a price cap freeze, and more money raised through a windfall tax), it is the most radical and ambitious proposal on the table to tackle the energy bills crisis.

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UK energy bills – six ways to reduce the impact of soaring prices

Be it a loft insulation drive or a lower price cap, there are many ways to help – but action must be swift and extensive

The UK government has been urged to take further action to alleviate the impact of soaring energy prices, and there are a number of measures it could take.

Any rescue package would need to be swift and extensive to prevent households being plunged into poverty this winter as home energy prices surge. Ministers will also need to dig deep to prevent more businesses hit by rising energy costs from defaulting on loans and declaring themselves bankrupt.

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Liz Truss doubles down on tax cuts over support for energy bills

Foreign secretary had previously said she did not want to give ‘handouts’ to people struggling with the cost of living

Liz Truss has doubled down on her refusal to offer significant help to people with soaring energy bills this winter, despite a forecast that these could exceed £4,200 annually from January, and rise further during 2023.

Truss, the runaway favourite to succeed Boris Johnson as prime minister next month, has already said she does not want to give “handouts” to people struggling with bills, preferring to prioritise tax cuts.

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Truss and Sunak accused of ‘living in parallel universe’ on bills crisis – UK politics live

Latest updates: Lib Dem leader says Tory leadership hopefuls have no plan to help millions of families struggling with price rises

The Joseph Rowntree Foundation, a leading poverty charity, says, in the light of the latest forecast about how energy bills will rise (see 10.54am), the government needs to at least double the help already provided to help people through the cost of living crisis. This is from Peter Matejic, its chief analyst.

The latest projections of annual energy bills exceeding £4,200 from January is the latest in a series of terrifying warnings over the past week, from the Bank of England and others. Families on low incomes cannot afford these eye watering sums and as a nation we can’t afford to ignore an impending disaster.

Both candidates to be prime minister must now recognise the extraordinarily fast-changing situation and act to protect the hardest hit from the coming emergency.

Unite said the 4% increase for staff in middle pay bands announced by the government last month is a “massive pay cut” because of soaring inflation.

The union will now consult with its 100,000 health members across the NHS in both England and Wales on whether they accept the “imposed deal” or want to challenge it through industrial action, which could mean strikes this winter.

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Ed Davey calls for halt to energy price cap increase to avoid ‘catastrophe’

Exclusive: Lib Dem leader says new PM should let government pay £36bn cost in new ‘energy furlough scheme’

Liz Truss or Rishi Sunak should cancel the £1,400 energy price cap increase in October in a new “energy furlough scheme” and government should absorb the £36bn cost of the hike, the leader of the Liberal Democrats has said.

Ed Davey said neither candidate appeared to have any policies that grasped the magnitude of what could happen this autumn. “We are facing a catastrophe this winter, a drop in living standards unlike anything we have seen in my lifetime,” he said.

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UK braces for even higher bills as Norway threatens electricity export cut

Water levels in southern Norway so low domestic consumers may be prioritised over international customers

British consumers could face even higher bills and potential energy shortages this winter after Norway threatened to ration electricity exports.

The UK receives hydroelectric power from Norway through a subsea interconnector cable running beneath the North Sea.

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Gordon Brown: ‘Set emergency budget or risk a winter of dire poverty’

Former PM has warned of a financial timebomb awaiting families as Labour plans a major intervention to address crisis

Boris Johnson and the Tory leadership candidates should agree an immediate emergency budget tackling the spiralling cost of living, Gordon Brown has said, or risk “condemning millions of vulnerable and blameless children and pensioners to a winter of dire poverty”.

The intervention by the former prime minister comes as new figures seen by the Observer show that more than 4 million households are on course to spend a quarter of their net income on energy.

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Almost 6m UK households ‘struggling to pay telecoms bills’

Which? says people are cutting food and clothes spending to pay for mobile, broadband and landline

Almost 6 million UK households are struggling to pay their mobile, landline and broadband bills, with the cost of living squeeze forcing many to cut back on essentials such as food and clothes, cancel or change a service, or miss payments to stay connected.

A report from the consumer group Which? estimates that 5.7 million households have experienced at least one “affordability issue” in April, as cash-strapped homes struggle to cope with soaring bills and other costs.

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More than one in eight UK households fear they have no way of making more cuts

As energy bills soar, survey shows almost half of homes are worried about paying rent or mortgage

More than one in eight UK households fear they have no further way to make cuts to afford a sharp increase in annual energy bills this autumn.

More than a quarter of households earning less than £20,000 worry they will be unable to cope with higher bills, with families in Yorkshire, the south-west and Northern Ireland the least confident about covering their costs, according to the latest rebuilding Britain index of 20,000 people by Legal & General.

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Europe could face energy rationing as ‘really tough winter’ looms, Shell boss warns

Ben van Beurden says Ukraine war fallout means big rise in bills and possible need to ration supplies

European consumers could face the prospect of energy rationing this winter as costs continue to soar amid the risk of Russia cutting off gas supplies, Shell’s chief executive has said.

“It will be a really tough winter in Europe,” said Ben van Beurden, speaking at the Aurora spring conference in Oxford on Thursday. “We will all face very significant escalation in energy prices. In the worst case, Europe will need to ration its energy consumption.”

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Europe and UK pour 17,000 tons of cooking oil into vehicles a day

Analysis finds 58% of rapeseed oil in Europe is burned for fuel despite soaring prices and climate impact

Europe and the UK are pouring 17,000 tons – or about 19 million bottles – of cooking oil into vehicle fuel tanks every day, even though it is up to two-and-a-half times more expensive than before 2021, according to new analysis.

The equivalent of another 14 million bottles a day of palm and soy oil – mostly from Indonesia and South America – is also burned for fuel, the research says.

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Energy price cap in Britain could near £3,000 this autumn

New forecasts suggest household bills could rise more than £1,000 after another spike in wholesale prices

The energy price cap could reach nearly £3,000 in the Britain at the beginning of October, with the planned increase possibly being more than £1,000 according to a new forecast.

It is expected to rise to £2,980.63 for the next period, which runs between October and December, after another spike in wholesale demand prices last week.

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UK food price rises could hit 15% over summer, report says

Ukraine war, China lockdowns and Brexit help push up inflation, with products that rely on wheat worst hit

Food price rises in the UK could hit 15% this summer – the highest level in more than 20 years – with inflation lasting into the middle of next year, according to a report.

Meat, cereals, dairy, fruit and vegetables are likely to be the worst affected as the war in Ukraine combines with production lockdowns in China and export bans on key food stuffs such as palm oil from Indonesia and wheat from India, the grocery trade body IGD warns.

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British Gas owner says windfall tax will dent investor confidence

Centrica boss also defends Amber Rudd’s appointment to its board as a non-executive

The British Gas owner, Centrica, has warned that Rishi Sunak’s windfall tax will “damage investor confidence” as Britain attempts to build up green energy supplies.

The Centrica chairman, Scott Wheway, and its chief executive, Chris O’Shea, hit out at the chancellor’s 25% levy on oil and gas operators’ excess profits, which will be used to pay for measures to reduce soaring energy bills.

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Most small firms fear long-term fallout from UK’s cost of living crisis

Half worry rocketing prices will cut spending, while three in four fear long-term damage to businesses

Three-quarters of small and medium-sized companies are worried about the long-term impact the cost of living crisis, soaring energy bills and rising inflation will have on their business, a survey has found.

Just over half (51%) of SMEs said they were concerned that rocketing prices would dent consumer spending, in response to Barclays’ SME Barometer, a quarterly survey of business sentiment conducted for the bank.

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Rishi Sunak to announce windfall tax on energy firms

One-off levy to fund support package amid cost of living crisis which could include increase in benefits

Rishi Sunak will push the button on a controversial windfall tax on energy companies on Thursday, as he lays out measures to ease the pain of rising household bills.

The chancellor has confirmed speculation he will announce fresh support for Britons struggling with the cost of living crisis. The measures are expected to help the poorest households as rampant inflation pushes up the price of everything from food to fuel.

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Rishi Sunak reportedly considering windfall tax on electricity generators

Levy could be extended beyond oil and gas producers to help households in cost of living crisis

Rishi Sunak is reportedly considering imposing a wider windfall tax on electricity generators, as well as on oil and gas producers, that could bring in billions of pounds to help households struggling with soaring food and energy costs.

The chancellor has instructed Treasury officials to work on plans for a potential tax on more than £10bn of excess profits made by electricity generators, including windfarm operators, according to sources cited by the Financial Times.

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