Member of Parliament for the Cities of London and Westminster, Nickie Aiken, has shared the following statement in response to the Prime Minister's announcement on energy bills and the cost of living.
The current economic climate, including the eye-watering increase in energy prices, is the result of a perfect storm from the after-effects of the Covid pandemic and Putin’s illegal invasions of Ukraine. As a result, both energy and food prices have soared, way beyond predictions. No one is immune from the cost of living crisis, and I have heard from people across the Two Cities outlining their deep concerns and worries about the rising cost of their household bills.
Therefore today’s statement from the Prime Minister outlining what further steps the Government is taking to support people with increasing and deeply concerning rises in energy costs is most welcome.
Today is clearly a big intervention and I am glad the Government is taking immediate actions, including:
- A new Energy Price Cap. The price cap was due to rise significantly to £3,549 a year (and likely over £5,000 a year in January). Now, household bills are capped at £2,500/year from October 1st. In real terms, this will save households an average of £1,000/year.
- Secondly, and critically for the Two Cities - the Government is setting up a special fund for those on communal heat networks, so that all UK consumers can benefit from equivalent support.
This is something I have been raising with Ministers since the last administration. Households - through no fault of their own - are fully exposed to extreme market changes and so far have been excluded from the energy price cap. I am relieved that the new Government has brought in protection for them.
- Equally, I am well aware that our businesses have had to navigate a triple threat of increasing energy bills, higher staffing and supply costs, and a fall-off in customer spending.
For this reason, I was absolutely delighted to see the introduction of a business support scheme which will give businesses the equivalent support to that for households over a six-month period, with a review after three months to target support for the most vulnerable businesses, charities and public sector organisations.
- In addition, the £400 payment to all homes will continue, as well as the £650 payments to those on universal credit, the £150 to those with disabilities, and £300 to pensioners. In addition, the new lower price cap includes getting rid of the green levies on energy bills.
Having heard from so many of my constituents in the past few months about their concerns regarding their cost of living and energy bills, these interventions are most welcome.
I look forward to hearing more details about this package in the coming weeks.
