Millions of UK households to pay more for energy from April

Jeremy Hunt expected to use autumn statement to announce rise in household energy price cap to as much as £3,100

Millions of UK households will pay more for their energy from next April under plans to cut the generosity of the government’s gas and electricity support scheme expected to be announced by Jeremy Hunt on Thursday.

The chancellor is likely to use his autumn statement to say the need to save money and reduce state borrowing will require the household energy price cap to rise from £2,500 to an expected £3,000 to £3,100.

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Energy bills: older Britons will pay more but youngest will struggle most, report finds

Cost of living crisis affecting different generations in very different ways, says Resolution Foundation

Older people face a bigger income hit from surging energy costs this winter but younger households are more at risk of being unable to pay their bill or getting into debt amid the cost of living crisis, according to a report.

As households across Britain turn their heating on, the research by the Resolution Foundation thinktank found that older generations, in particular the over-75s, will spend a bigger share of their income, up from 5% to 8%, on their energy bills. For those under 50 the proportion is 5%.

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Energy bills: thousands of UK households in limbo over £400 support

Concerns grow that people relying on communal heating may not receive state discount promised

Thousands of people living in homes with centrally supplied electricity are still waiting to hear if and when the UK government will pay them the £400 promised under the energy bills support scheme.

While those living in conventional homes with standard electricity meters are due to receive their second monthly payment of £66, concern is growing among some of the several hundred thousand households that receive their electricity via a communal supply that they will not see any of the money they have been promised.

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‘Vital’ energy security bill must be brought back, says Labour

Shadow climate minister says Britain is losing the race to create green jobs

Labour has accused the government of being “highly irresponsible” in sidelining a crucial piece of energy legislation, arguing that Britain is “losing the race” to create green jobs.

The energy security bill was published in July with the aim of boosting domestic, low-carbon power supplies and bringing down energy costs.

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Thousands expected to attend London rally to demand general election

Protest by People’s Assembly campaign group will also call for action on the cost of living crisis

Thousands of people are expected to hold a demonstration in London on Saturday, demanding an immediate general election, as well as action to combat the worsening cost of living crisis.

Trade unions and community organisations will take part in the protest, which will include a march around parliament, said its organisers, the People’s Assembly campaign group.

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UK government’s £400 energy bill support going unclaimed

Many households who use non-smart prepayment meters are failing to redeem vouchers, says PayPoint

Government energy bill support worth as much as £400 over the winter is not reaching many households who use prepayment meters, according to data from a payments company.

Households with prepayment energy meters are entitled to vouchers giving them monthly discounts, but only half of the expected number have been used so far, according to PayPoint, which handles top-up payments in shops across the UK.

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Shell doubles its profits to $9.5bn as call for windfall tax grows

Oil giant to boost dividends as firm continues to benefit from energy price spike after Ukraine invasion

Shell has reported profits of nearly $9.5bn (£8.2bn) between July and September, more than double the amount it made during the same period a year earlier, as it said it would increase its payments to shareholders.

The oil company continued to benefit from soaring energy prices prompted by Russia’s invasion of Ukraine, but it was not able to match the record $11.5bn profit it earned between April and June, because of weaker refining and gas trading.

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Cost of living crisis: Stop the Squeeze calls for wealthiest to ‘pay proper share’ of tax

Coalition of 40-plus charities and groups launches amid fears of spending cuts to plug public finances

Pressure is building on the leaders of Britain’s two biggest political parties to support higher taxes on wealth amid growing fears over the impact that a renewed austerity drive would have amid the cost of living crisis.

In an intervention which comes as the new prime minister, Rishi Sunak, considers options for filling a £35bn black hole in the public finances, a new coalition of 40 charities and campaign groups – including Oxfam, Save the Children and Christians Against Poverty – said Britain’s tax system was broken and those who paid the most should “pay their proper share”.

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Jeremy Hunt to detail mini-budget U-turn to MPs after Penny Mordaunt insists PM had ‘genuine reason’ for missing Commons question – live

Latest updates: chancellor to make statement after leader of Commons denied PM was hiding under a desk

Judging by what Conservative MPs have been telling journalists in private over the last few days, the consensus (but not unanimous) view among Tories seems to be that Liz Truss will have to be replaced as party leader before the next election. But very few MPs are saying that in public, and Sky’s Tom Larkin, who is running a spreadsheet of Tories calling for Truss’s resignation, has only got three names on it.

Damian Green, the former first secretary of state, was on the Today programme and you would expect him to be on the Larkin list. He is chair of the One Nation Conservatives caucus, the group most horrified by Truss’s experiment with hardline free market ideology. But he insisted that Truss did have the credibility to carry on as PM, despite the fact she is abandoning most of the key tax policies at the heart of her leadership campaign. He explained:

She is a pragmatist - she’s realised that the first budget didn’t work in spectacular fashion, so she’s now taken the sensible view that we will now try something else, and she’s appointed a very sensible chancellor in Jeremy Hunt.

I obviously don’t know what he’s going to say, but clearly what he’s going to do is already beginning to reassure the markets, and I hope will continue to do so afterwards.

Yes, because if she leads us into the next election, that will mean that the next two years have been a lot more successful than the past four weeks have been. That would not only be good for the Conservative party, that would be particularly good for the country as well, so I think everyone would welcome that.

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No 10 warns of ‘difficult decisions’ on public spending despite Truss’s vow to avoid cuts – UK politics live

Statement from No 10 comes straight after PM told MPs she was ‘absolutely’ committed to avoiding public spending cuts

Sajid Javid, the former Tory chancellor, has been speaking at an event organised by the Legatum Institute thinktank this morning. As Chris Smyth from the Times reports, Javid said the turmoil in the markets was caused by the fact that the tax cuts in the mini-budget went “way beyond” what Liz Truss promised during the leadership campaign, and by the fact that her energy bills bailout was also much bigger than expected.

The government has drawn up a plan to cap the unit cost of gas and electricity for two years. Labour proposed its own plan to freeze energy bills, but it only proposed a commitment for six months.

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Octopus Energy reportedly closing in on takeover of Bulb

Deal to acquire rival’s 1.6m customers would end total cost to taxpayers at an estimated £4bn

Octopus Energy is reportedly closing in on a takeover of its rival Bulb in a deal that will set the final bill to the taxpayer at an estimated £4bn.

Ministers at the Treasury and the Department for Business, Energy and Industrial Strategy (BEIS) have been informed that a sale of Bulb’s customer base of 1.6 million would be the most favourable outcome, according to Sky News.

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UK and Ireland agree to work together on post-Brexit arrangements – live

UK and Ireland agree to do ‘everything possible’ to restore power sharing in Northern Ireland

The UK and Ireland have agreed to do “everything possible” to restore power-sharing in Northern Ireland, following a meeting of the British-Irish intergovernmental conference in London.

The Irish foreign affairs minister Simon Coveney and the UK’s Northern Ireland secretary Chris Heaton-Harris met in London today – alongside the Irish justice minister Helen McEntee and the UK’s Northern Ireland minister Steve Baker.

The UK and Irish governments reaffirmed their commitment to doing everything possible to facilitate the reestablishment of the executive by 28 October and the full functioning of all of the political institutions established by the Belfast/Good Friday Agreement including the North South Ministerial Council.

They agreed on the importance of respecting the agreement in totality.

The conference discussed the approach to the legacy of Northern Ireland’s past and the value of further engagement on this crucial issue, in particular the Irish government’s concerns with the UK government’s proposed legislation and how those concerns might be addressed.

In terms of setting up a central bank, we would start that process as soon as Scotland voted for independence. That central bank would be the provider of advice to the Scottish government on these matters, it would be the lender of last resort for our financial services industry, it would require reserves that could cover these limited functions in that first period.

We have said, and this is my party’s position, that we would move from using the pound, we would continue to use the pound after independence ... and we would move to a Scottish pound when the economic conditions were right.

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Great British Energy: what is it, what would it do and how would it be funded?

The details behind Keir Starmer’s proposed publicly owned energy company when Labour take power

The key pledge of Keir Starmer’s Labour conference speech was the proposed launch of Great British Energy, a publicly owned energy company to invest in clean UK power as part of the party’s commitment to “fight the Tories on economic growth”. But how does it work, and is it the same as renationalising energy?

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Sunday roasting dwindles as cost of cooking crisis hits home

Annual Good Food Nation survey finds a fifth of Britons no longer turn on their oven to save money

Families have crossed Sunday roasts, stews and home baking off the menu and in drastic cases no longer use their oven, as soaring energy costs force big changes in the kitchen.

One in four home cooks said they were less likely to prepare a roast dinner, while a fifth were not baking as many cakes or biscuits, according to the annual Good Food Nation report.

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UK in recession and further interest rate hikes probable, Bank warns Kwarteng

Threadneedle Street makes clear on eve of tax-cutting mini-budget that plans risk triggering more rate rises

The Bank of England has warned Kwasi Kwarteng the economy is in recession and it will most probably need to push interest rates higher after Friday’s tax-cutting mini-budget.

On the eve of a major package of support from the chancellor designed to break what he called the economy’s “cycle of stagnation”, Threadneedle Street said the UK economy was heading for a second consecutive quarter of falling output, with gross domestic product set to shrink 0.1% in the three months to September.

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‘Not every measure will be popular’: Truss says voters may not like all her pro-growth measures – UK politics live

Latest updates: prime minister says she is willing to implement unpopular policies to try to boost growth in the UK

Rosie Cooper has indicated that she intends to stand down as Labour MP for West Lancashire to take up a new job as chair of the Mersey Care NHS foundation trust. In her statement announcing the move Cooper says that events in recent years have “undoubtedly taken their toll” – a reference to Cooper being targeted by a neo-Nazi who was jailed for life in 2019 for plotting to kill her.

Cooper’s statement implies she will resign and trigger a byelection. At the last election she had a majority of more than 8,000 over the Conservatives, and in a byelection Labour would be expected to hold the seat very easily.

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EU calls for money to be clawed back from energy firms, saying profits must go ‘to those who need it most’ – politics live

Liz Truss has stated her opposition to windfall taxes but the European Commission says energy profits must be shared

Sharon Graham, the Unite general secretary, says the UK is facing a “crisis of income”. She says workers should get a better share of corporate profits.

This has parallels with the point Ursula von der Leyen was making about profits in her speech this morning (see 9.35am), although von der Leyen, a German Christian Democrat who has little in common with Graham, was just talking about the energy sector.

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Kwarteng ‘tells Treasury to focus entirely on growth’ as Tory peer defends sacking of senior civil servant – as it happened

The new chancellor is reported to have told Treasury staff there was a need to ‘do things differently under fresh leadership’. This live blog is now closed

At the lobby briefing yesterday Downing Street admitted that Liz Truss had not completed her government reshuffle. New appointments were suspended following the death of the Queen.

According to an analysis by Arj Singh for the i, 55 posts remain unfilled. Singh says that, to fill all the posts that Boris Johnson had in his government, Truss will need to appoint 21 junior ministers in the Commons, nine Commons whips and 25 Lords ministers.

The removal of Sir Tom Scholar as the lead permanent secretary at the Treasury should be a cause for celebration.

Having worked in his department for nearly two years I saw at first hand the malign influence of the Treasury orthodoxy at play. Whether it was foot-dragging and passive resistance to creating a Treasury office in the north (in Darlington), which he fiercely resisted, or the botched arrangements in the construction of the bounceback loans during the pandemic, all roads led back to him.

I hope very much that our new prime minister will build on her excellent decision and remove responsibility from the Treasury for driving economic growth. It has no idea how to deliver this. The system obsesses about measuring inputs, counting out the money distributed to departments, but has little clue of how to measure outcomes. Departments are infantilised in their management of money, with savings being automatically clawed back to the centre. This of course removes any incentive to think innovatively, creatively or cost-effectively.

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Liz Truss under pressure to reveal details of energy crisis plan

Emergency budget of winter tax cuts expected next week once period of national mourning for Queen is over

An emergency budget to bring in winter tax cuts for millions of people and set out more detail on energy handouts is expected late next week once the country emerges from national mourning.

Though politics has been paralysed by the death of the Queen, Liz Truss is under pressure from Tory MPs to set out her plans potentially on Thursday or Friday next week, before the Commons breaks up for party conferences.

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Bank of England to lend UK energy companies as much as £40bn

Bailout fund provided amid soaring market prices and fears of another wave of collapses

The Bank of England will lend UK energy companies as much as £40bn to deal with soaring market prices amid fears of another wave of energy company collapses.

Prime minister Liz Truss, on her third day in office, said she wanted to make sure energy companies have the cash they need to buy energy if prices jump. Reports this week said British Gas owner Centrica was in talks with banks to secure extra cash as Vladimir Putin continues to choke off Europe’s supply of gas.

A review of the UK’s energy regulation that promises to deliver “fundamental reforms to the structure and regulation”

An energy supply taskforce, led by Madelaine McTernan, who currently heads the government’s vaccines taskforce, that will seek to agree long-term contracts for energy supply at steady prices

A review of the UK’s 2050 net zero target to ensure it is “not placing undue burdens on businesses or consumers”

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