A leading housing provider has outlined its commitment to transform the sector and continue helping customers to live as independently as possible in their own homes.
As the population ages, Bield has placed a high priority on providing services that promote healthy ageing and creating partnerships that integrate customers with the community and local assets.
Facilitating independent living starts at the housing allocation process, with individuals across the provider now being assigned to properties in relation to their specific needs.
Although allocations are based on a traffic system and dependent in each area, this management can help to reduce moves and supports longer term tenancies.
Chief Executive of Bield, Dr Lynne Douglas, said: “With a growing older population and people living with more complex needs, it has resulted in a flexible structure being implemented. The model Bield operates allows services to be added or removed as required.
“For example, some of our developments benefit from additional meal service options whereas others are linked in with the Care Inspectorate which enables care-at-home to be provided.
“It’s important for us that we offer support in specially designed accommodation that is affordable, sustainable and suited to the individual.
“An integrated approach and working to support the needs of all parties is required to fully enable older people to live independently – making Scotland not only the best place to grow up, but also to grow old.”
The provider, which operates in 22 local authority areas across the country and has a diverse customer base of over 5,000 individuals, has seen first-hand the importance of community relationships after working closely with groups throughout the pandemic.
Sourcing prescriptions and shopping for groceries were only some of the acts of kindness displayed, which is something Bield has incorporated Kindness to its core organisational values.
Lynne added: “Helping customers integrate into the local and wider community is an extremely important part of what we do.
“Due to the average age of our customers, many of them live alone so we have a variety of ways to ensure they remain socially connected through external partnerships as well as with neighbours and staff internally.
“We’ve trained staff to have more meaningful conversations with older customers as well as facilitating an ongoing, innovative partnership with Midlothian Health and Social Care Partnership and Inverclyde Health and Care Social Partnership to bridge digital exclusion.”
Bield’s Alarm Receiving Centre (BR24) also plays an important role in understanding how older customers can benefit from being connected to local assets such as community hubs, while the service focuses on providing round the clock support.
Lynne added: “We’ve found through qualitative data gathering from our Inspire project, that BR24 has actually helped individuals transform their lives through only a short intervention with an operator.”
This reinforces the Bield’s ‘Free to Be’ philosophy which encourages people to make their own choices about how they live their lives whilst being there to offer support if needed.
Ryanair and British Airways have finished at the bottom of Which?’s annual survey of short-haul airlines, with both companies panned for providing poor customer service to those with disrupted flights during the pandemic.
The consumer champion surveyed more than 1,300 passengers for their experiences of flying with short-haul airlines in areas such as boarding, cabin cleanliness, customer service and value for money since November 2019.
In a second part of the survey, Which? asked more than 1,100 passengers whose flights were disrupted how satisfied they were with how their airline handled the issue. The actions of some airlines – delaying or denying refunds for flights cancelled, or which passengers could not take, due to Covid – were reflected in these results.
Budget carrier Ryanair received an overall customer score of 55 per cent and a lamentable 47 per cent in the refund satisfaction category, with one in five customers telling Which? it took them more than a month to get a refund.
One customer said: “Ryanair is the most awkward airline to deal with that I have ever come across. It seems to be proud of being difficult.”
Themes that have appeared time and again – making Ryanair a fixture in the bottom three of Which?’s airline survey for more than a decade – were also evident, with another passenger adding: “Total lack of transparency about costs, and treating passengers like cattle to be squeezed for the last penny.”
When asked, ‘Is there an airline you would never fly with?’, three-quarters (74%) named Ryanair. Ryanair scored no better than two stars for all the measures in the main customer satisfaction survey – apart from value for money, where it scored three stars.
BA was second from bottom with a customer score of 63 per cent – just behind TUI Airways, but with a much lower refund satisfaction score.
Passengers reported spending hours on hold only to be hung up on, or passed endlessly between different departments. This disappointing customer service, along with two-star ratings for food and drink, seat comfort and value for money, led one passenger to describe BA as ‘a budget style airline at premium prices’.
However, BA’s cabins ranked as joint cleanest alongside KLM and Jet2.
Jet2 was top of the table and earned a Which? Recommended Provider endorsement.
Its record on delivering refunds was the best: more than eight in 10 (84%) respondents were satisfied with the outcome when their flight was disrupted because of Covid, and throughout the pandemic, most passengers have received a resolution in two weeks.
Nine in 10 Jet2 customers told Which? they got a full refund, rather than having a voucher foisted upon them.
Its Covid flexibility policy is one of the best, allowing customers to make fee-free changes for most pandemic-related disruption, including lockdowns, quarantines and changing FCDO advice.
One Which? survey respondent said: “The pandemic has seen Jet2 shine. Its standard of customer care exceeds that of any other low-cost airline.”
Rory Boland, Editor of Which? Travel, said:“Ryanair’s consistently terrible customer service has made it a fixture among the worst performers in our surveys for many years – but the airline plumbed new depths with its handling of Covid refunds.
“BA’s reputation also deservedly took a battering when it took a hard line on refunds for passengers who could not travel because they followed government health guidance.
“Many passengers will not forget how they were treated by companies during the pandemic. Covid could still cause disruption to international travel, so we would advise travellers to book with operators that have flexible booking policies and a record of treating their customers fairly.”
Edinburgh College’s Board of Management has appointed two new non-executive members to support it in leading the strategic direction of the College.
The new members are experienced figures in Scottish public life and have an extensive background in digital, data analytics and IT infrastructure, within the private sector. The new Board members are former Chief Executive Officer of Vianet Group PLC. Stewart Darling and Kerry McCormack, Head of IT at First Sentier Investors.
As Chief Executive Officer of Vianet Group PLC, Stewart Darling led the transformation of the business from a service provider to a technology company, and established new revenue streams that delivered multiple years of growth which saw the value of the business double as it became a leading player in the Internet of Things and data analytics industry.
Stewart has also served as a Non-Executive Director of the governing body for golf in Scotland.
Kerry McCormack is an experienced IT professional, leading a Global IT team at First Sentier Investors. Prior to taking up the Global Head of IT role in 2018, Kerry had joined First Sentier Investors as an Application Developer in 2001 before progressing to become a member of the IT Leadership team.
Kerry has been involved in a broad range of global strategic projects reflecting her specialist IT knowledge and experience of the investment management industry.
Interim Chair of Edinburgh College’s Board of Management Ann Landels said: “On behalf of the Board, I would like to welcome Stewart and Kerry to their new roles.Both have a vast wealth of experience in both digital and IT infrastructure, as well as strong links within important areas of our curriculum.
“Their respective experiences and skillsets will serve the College and the Board well as we aim to continue maximising experiences and opportunities for all of our students.”
Edinburgh College Principal Audrey Cumberford said: “I am delighted to welcome Stewart and Kerry to the Board of Management as we work to achieve our ambitions for the future.
“Their industry experience and knowledge and, in particular, expertise in the use of technology will undoubtably support the College in delivering for our students, communities, local businesses, and employers at a time when using technology to develop new ways of working and learning have never been more pertinent.
“The depth and breadth of experience of our Board is hugely important and I look forward to working with our new members.”
Scotland’s Burger Restaurant of the Year – Luxford Burgers, has announced a new residency for their delicious buns at Edinburgh’s top alternative night out, Fore Play Crazy Golf.
Launched yesterday (Wednesday, 2nd February), Luxford means business and will be tantalising hungry crazy golf-goers with a menu bursting with their signature burgers and sides as they pop up at Picardy Place for the next few months.
With each gourmet burger named after cult movies, the bespoke new menu will offer a mouthwatering selection of burgers not for the faint hearted including ‘The Highlander’ (above) – a meaty showstopper with two stacked 4oz aged Scotch steak patties, layered with double American cheese, crispy smoked streaky bacon, LUX sauce and pickles.
Run don’t walk for ‘The Chicken Run’; crispy garlic chicken fillet topped with double American cheese, crispy smoked streaky bacon and LUX sauce.
Veggie fans will love ‘The Italian Job’ with fried halloumi wedges, sun-blushed tomatoes, club dressing, wild rocket and red pepper pesto.
Meanwhile 100% vegan ‘The Shining’ will light up your Instagram feed, with their blackened cajun-spiced jackfruit burger with smashed avocado, vegan cheese, sriracha sauce and homemade sweet potato crisps.
For those looking for a little side hustle, Luxford will be serving up finger-licking sides including skin-on and sweet potato fries sprinkled with fresh rosemary sea salt plus chicken katsu fries, fully loaded with diced crispy chicken and katsu mayo.
From sipping on playful cocktails to enjoying tasty gourmet burgers or tackling their signature crazy golf courses, you’re guaranteed to leave your troubles behind after your time on and off the green at Fore Play Crazy Golf.
Craig Neilson, Chief Greenkeeper at Fore Play Crazy Golfsaid:“Luxford is one of Edinburgh’s most talked about burger joints and they are the perfect fit for our crazy golf experience at Fore Play.
“We love collaborating with local businesses and we can’t wait for our guests to sink their teeth into their gourmet creations. With extended opening hours kicking off for February, you can now visit us Wednesday to Sunday for your competitive socialising fix!”
Alexander Galpin, owner of Luxford Burgerssaid: “We’re extremely passionate about serving up top-quality, freshly prepared burgers to the masses and we can’t wait to take it to the next level at Fore Play Crazy Golf.’
Love is also on the menu this Valentine’s Day with the shiny new Valentine’s Package at Fore Play.
Enjoy a hit from cupid with the brand new Match-maker’s Margarita, a frozen strawberry pink margarita complete with love heart gummies.
Available from 7 – 27 February, ‘Two Birdies Sitting in a Tree’ includes a glass of prosecco on arrival, one round of golf, one cocktail of the moment, one drink and a meal at just £29.95pp per couple.
The College is hosting the event both online and in-person at its Sighthill Campus from 8.30am with the aim of showcasing training opportunities available to SMEs and large companies through the Flexible Workforce Development Fund (FWDF).
The information event, taking place on Thursday 24 February 2022, will see business delegates learn about the FWDF from Edinburgh College’s Business Development Advisors, as well as meeting expert lecturers who will discuss the range of subjects available to businesses and employees.
Attendees will also hear from Tracey Bork, Head of People at Lothian Buses, about her experience of applying for fully funded training with Edinburgh College.
If delegates cannot attend in person, the College is streaming the presentations and interview taking place during the event via Microsoft Teams.
A link for the live stream and joining instructions will be available soon after registering for the event. Online delegates will have the opportunity to ask questions through a Q&A function within Teams.
The College encourages anyone who intends to attend the event in person to take a lateral flow COVID-19 test before they arrive.
The Flexible Workforce Development Fund, offered by the Scottish Government and the Scottish Funding Council, facilitated by Scottish colleges, offers larger organisations and SMEs, across the private, public and third sectors, an opportunity to apply for fully funded training for their teams.
The funding provides SMEs with up to £5,000 of free training; and larger employers (those with an annual payroll bill of £3m+) with up to £15,000 of free training.
Introduction to the College, training opportunities and funding options.
8.50am
Interview with Tracey Bork, Head of People at Lothian Buses, about the client’s experience of accessing the fund through Edinburgh College.
9.05am
A presentation from Edinburgh College and the Training Development team about professional training courses and management soft skills (CMI, CIPD, ILM, bespoke).
9.15am
A talk on ‘Adapting to new working conditions during the pandemic’ from John Chalmers – Learning and Development Manager at Business Stream.
Prices are rising at the fastest rate in 30 years, and energy bills alone are expected to rise by 50% in April. We are all feeling the pinch but the soaring costs of essentials will hurt low income families, whose budgets are already at breaking point, most.
There has long been a profound mismatch between what those with a low income have, and what they need to get by. Policies such as the benefit cap and benefit freeze have left many struggling. Families are still reeling from the £20 cut to Universal Credit last October. And, though benefits will increase by 3.1% in April, inflation is projected to be 6% by then. This means yet another real terms cut to incomes.
The government must respond to the scale of the challenge. Immediate targeted protection to prevent serious hardship is essential, but short-term support will not be enough in the face of ongoing inflation.
The government should increase benefits by 6% in April and ensure support for housing costs increases in line with rents. All those struggling, including families affected by the benefit cap, must feel the impact.
Much more is needed for levels of support to reflect what people need to get by. But, in taking these first steps, the government will prevent the gap from getting wider and lay the foundation to further strengthen our social security system that protects us from poverty.
Signed by:
Alison Garnham, Chief Executive, Child Poverty Action Group
Graeme Cooke, Director of Evidence and Policy, Joseph Rowntree Foundation
Emma Revie, Chief Executive, The Trussell Trust
Imran Hussain, Director of Policy & Campaigns, Action for Children
Caroline Abrahams, Charity Director, Age UK
Sarb Bajwa, Chief Executive, British Psychological Society
Joseph Howes, CEO, Buttle UK
Leigh Elliott, CEO, Children North East
Laurence Guinness, Chief Executive, The Childhood Trust
Paula Stringer, CEO, Christians Against Poverty (CAP)
Niall Cooper, Director, Church Action on Poverty
James Plunkett, Executive Director of Advice & Advocacy, Citizens Advice
STATEMENT ON FUTURE PREMISES FOR CCC (2nd February 2022)
Since the disastrous fire in 2013, we have been looking to rebuild the former Corstorphine Public Hall at Kirk Loan.
We have made considerable efforts, with success, to modernise our governance structure to facilitate this, trusting it would then enable us to access the required funds as a Scottish Charitable Incorporated Organisation (SCIO) which owns and runs a Community Facility for the area.
A Lottery Fund application was applauded, but no funds were granted and as you may be aware the CCC has over the past few years received indications of funding options on a number of occasions by the City of Edinburgh Council but has not been allocated anything towards the approved project to rebuild on the original Public Hall site.
Strenuous efforts have been made over a number of years to secure the funds to make that project possible but without success. Our current lease at St John’s road will be coming to an end shortly, leaving us nowhere to run all our current and successful community groups and services.
After much serious consideration and research, CCC has now started the proceedings for a Community Asset Transfer (CAT) of Westfield House in Corstorphine, the former city council office building, also situated in Kirk Loan
Our intention is to adapt the current building to create the required community centre. The CAT presents an opportunity to provide even more services and activities for the local community. It is also anticipated that external funding for this project will be available from the Scottish Land Trust.
In addition to our existing cash reserves and all donations received, the original site at Kirk Loan has a value and although somewhat reluctantly, it is our intention that the site will shortly be marketed for sale; this will provide funds to be used solely for the provision of the new community centre for Corstorphine.
“We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet”
Record increase in global gas prices sees energy price cap rise of 54%
Ofgem knows this rise will be extremely worrying for many people
Customers struggling to pay their energy bill should contact their supplier to access the help available
The energy price cap will increase from 1 April for approximately 22 million customers. Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year (difference due to rounding). Prepayment customers will see an increase of £708 from £1,309 to £2,017.
The increase is driven by a record rise in global gas prices over the last 6 months, with wholesale prices quadrupling in the last year.
It will affect default tariff customers who haven’t switched to a fixed deal and those who remain with their new supplier after their previous supplier exited the market.
The price cap is updated twice a year and tracks wholesale energy and other costs.
It stops energy companies from making excessive profits, ensuring customers pay no more than a fair price for their energy.
The price cap allows energy companies to pass on all reasonable costs to customers, including increases in the cost of buying gas.
Since the price cap was last updated in August, the current level does not reflect the unprecedented record rise in gas prices which has since taken place.
Under the price cap mechanism, energy companies will be allowed to pass on these higher costs from April when the new level takes effect.
This is because energy companies cannot afford to supply electricity and gas to their customers for less than they have paid for it.
Over the last year, 29 energy companies have exited the market or been put in special administration in the wake of soaring global gas prices, affecting around 4.3 million domestic customers.
Jonathan Brearley, chief executive of Ofgem, said:“We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.
“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.
“Ofgem is working to stabilise the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future.”
Ofgem will tomorrow announce further measures to help the energy market weather future volatility by increasing financial resilience and have the flexibility to respond so that risks are not inappropriately passed on to consumers.
The further measures include enabling Ofgem to update the price cap more frequently than once every 6 months in exceptional circumstances to ensure that it still reflects the true cost of supplying energy.
Help available for customers:
If customers are struggling to pay for energy bills, they should contact their energy supplier as soon as possible. Depending on their circumstances, customers may be eligible for extra help with their energy bills or services, such as debt repayment plans, payment breaks, emergency credit for prepayment metered customers, priority support and schemes like the Winter Fuel Payment or Warm Home Discount rebate.
Breathing Space Scheme: This is a scheme to give households time to receive debt advice and find a solution to sort out their debt problems. Breathing space will last for 60 days as long as applicants remain eligible during which time all creditors who have been included will be informed and must stop any collection or enforcement activity. Once the breathing space ends, creditors will be able to collect the debt in the usual way. Call the National Debtline on Freephone 0808 808 4000 or visit www.nationaldebtline.org
The Citizens Advice consumer service can provide advice on how customers can resolve problems with their energy provider. You can contact Citizens Advice via webchat, or by calling 0808 223 1133. For complex or urgent cases, or if a person is in a vulnerable situation, they may then be referred onto the Extra Help Unit.
2. Ofgem will announce further measures tomorrow including:
Introducing an uplift in the wholesale cost allowance in the price cap: after reviewing the evidence, Ofgem has decided that the existing price cap methodology did not appropriately account for the additional wholesale energy costs energy companies have incurred during the current price cap period following the unprecedented scale of wholesale energy prices and volatility. This adjustment represents less than 10% of the overall price cap increase.
Changing licence conditions to give Ofgem the more flexibility to change the price cap level if needed in between the regular six-monthly cap updates: Ofgem has set ourselves five tests which mean we will only expect to use the power in exceptional circumstances.
Further reforms to the price cap from October: In December we set out three options to make the price cap more robust to high and volatile wholesale energy costs while preserving as far as possible the benefits of the price cap for consumers. The consultation published tomorrow will include all three options, with quarterly updates as our preferred option
Breakdown of costs in the energy price cap
Dual fuel customer paying by direct debit, typical energy use (GB £)
*Network costs: The main driver of this increase is the recovery of Supplier of Last Resort (SoLR) levy costs (£68). A supplier acting as a SoLR can make a claim for any reasonable additional, otherwise unrecoverable, costs they incur. These levy claims are paid to energy companies by the distribution network companies and recovered from consumers via their charges.
5. The charts below show the wholesale prices that are used to determine the wholesale cost allowance within the price cap from spring 2018 ahead of the introduction of the price cap in January 2019.
Wholesale costs make up the majority of a customer’s bill. An efficient supplier will purchase energy for their customers on the wholesale market in advance of when they need to supply that energy.
This purchasing strategy is reflected in how the wholesale allowance is calculated within the price cap. We observe the forward-looking energy contracts that energy companies typically purchase over time and combine these to determine the wholesale cost allowance within the price cap.
We do this twice a year when we update the price cap in August for the winter period (October – March) and in February for the summer period (April – September) based on the price of these forward-looking energy contracts over the previous six months.
The fixed horizontal line shows the average wholesale cost allowance for each 6 month price cap period based on the price of the relevant forward looking energy contracts (the jagged line).
The recent spike in the prices of relevant forward looking energy contracts over the last 6 months can be clearly seen. The scale and pace of wholesale price increases has resulted in a big increase in the wholesale cost allowance for the price cap level for summer 2022.
Wholesale gas price costs in the energy price cap
Pence per therm
Wholesale electricity price costs in the energy price cap
Pounds per megawatt hour
Data sets behind these graphs are proprietary and can be sourced from ICIS.
Chancellor’s statement – Energy Price Cap
Statement, as delivered by Chancellor Rishi Sunak, on 3 February 2022:
Mr Speaker,
The UK’s economic recovery has been quicker and stronger than forecast.
In the depths of the pandemic, our economy was expected to return to its pre-crisis level at the end of 2022.
Instead, it got there in November 2021 – a full year earlier.
Unemployment was expected to peak at nearly 12%.
Instead, it peaked at 5.2% and has now fallen to just over 4% – saving more than 2 million jobs.
And with the fastest growing economy in the G7 this year…
Over 400,000 more people on payrolls than before the pandemic…
And business investment rising…it’s no wonder Mr Speaker, that borrowing is set to fall from £320bn last year …
… the highest ever peacetime level …
… to £46bn by the end of this Parliament.
As we emerge from the depths of the worst recession in 300 years, we should be proud of our economic record.
The economy is stronger because of the plan we put in place; because of the actions we took to protect families and businesses.
And that plan is working.
But for all the progress we are making – the job is not yet done.
Right now, I know the number one issue on people’s minds is the rising cost of living.
It is the independent Bank of England’s role to deliver low and stable inflation – and the Governor will set out their latest judgements at midday today.
And just as the government stood behind the British people through the pandemic…
… so we will help people deal with one of the biggest costs they now face – energy.
The energy regulator, OFGEM, announced this morning that the energy price cap will rise in April to £1,971 – an increase of £693 for the average household. Without government action, this would be incredibly tough for millions of hardworking families. So the government is going to step in to directly help people manage those extra costs.
Mr Speaker,
Before I set out the steps we are taking, let me explain what’s happening to energy prices, and why.
People’s energy bills are rising because it is more expensive for the companies who supply our energy to buy oil, coal, and gas.
Of the £693 increase in the April price cap, around 80% comes from wholesale energy prices.
Over the last year, the price of gas alone has quadrupled.
And because over 85% of homes in Britain are heated with a gas boiler, and around 40% of our electricity comes from gas, this is hitting households hard.
The reasons gas prices are soaring are global.
Across Europe and Asia, a long, cold winter last year depleted gas stores.
Disruption to other energy sources like nuclear and wind left us relying more than usual on gas during the summer months.
Surging demand in the world’s manufacturing centres in Asia…
… at the same time as countries like China are moving away from coal…
… is further increasing demand for gas.
And concerns about a possible Russian incursion into Ukraine are putting further pressure on wholesale gas markets.
And so prices are rising.
Mr Speaker,
The price cap has meant that the impact of soaring gas prices has so far fallen mainly on energy companies.
So much so, that some suppliers who couldn’t afford to meet those extra costs have gone out of business as a result.
It is not sustainable to keep holding the price of energy artificially low.
For me to stand here and pretend we don’t have to adjust to paying higher prices would be wrong and dishonest. But what we can do is take the sting out of a significant price shock for millions of families … by making sure the increase in prices is smaller initially and spread over a longer period.
Mr Speaker,
Without government intervention, the increase in the price cap would leave the average household having to find an extra £693.
The actions I’m announcing today will provide, to the vast majority of households, just over half that amount – £350.
In total, the government is going to help around 28 million households this year.
Taken together, this is a plan to help with the cost of living worth around £9bn.
We’re delivering that support in three different ways.
First, we will spread the worst of the extra costs of this year’s energy price shock over time.
This year, all domestic electricity customers will receive an upfront discount on their bills worth £200.
Energy suppliers will apply the discount on people’s bills from October.
With the government meeting the cost in full.
That discount will be automatically repaid from people’s bills in equal £40 instalments over the next five years.
This is the right way to support people while staying on track with our plans to repair the public finances.
And because we are taking a fiscally responsible approach, we can also provide more help, faster, to those who need it most – the second part of our plan.
We’re going to give people a £150 Council Tax rebate to help with the cost of energy, in April – and this discount won’t need to be repaid.
And I do want to be clear with the House that we are deliberately not just giving support to people on benefits.
Lots of people on middle incomes are struggling right now, too – so I’ve decided to provide the council tax rebate to households in Bands A to D.
This means around 80% of all homes in England will benefit.
And the third part of our plan will provide local authorities with a discretionary fund of nearly £150m…
… to help those lower income households who happen to live in higher Council Tax properties…
… and households in bands A-D who are exempt from Council Tax.
We’re also confirming today that we’ll go ahead with existing plans to expand eligibility for the Warm Home Discount by almost a third…
… so that 3m vulnerable households will now benefit from that scheme.
And that’s not all we’re doing to help vulnerable households.
We’re providing £3bn over this Parliament to help more than half a million lower income homes become more energy efficient, saving them on average £290 per year.
Increasing the National Living Wage to £9.50 an hour in April, a pay rise of over £1,000 for 2 million low paid workers.
And providing an effective tax cut for those on Universal Credit, allowing almost 2 million households to keep an average of £1,000 per year.
The payment through energy suppliers will apply across England, Wales and Scotland.
Energy policy is devolved in Northern Ireland, with a different regulator, and the government does not have the legal powers to intervene.
So we will make sure the Executive is funded to do something similar, with around £150m for Northern Ireland through the Barnett formula next year.
And because the Council Tax system is England only, total Barnett consequentials of around £565m will be provided to the devolved administrations in the usual way.
Mr Speaker,
I know that some in this House have argued for a VAT cut on energy.
However, that policy would disproportionately benefit wealthier households.
There would also be no guarantee that suppliers would pass on the discounts to all customers.
And we should be honest with ourselves: this would become a permanent Government subsidy on everyone’s bills.
A permanent subsidy worth £2.5 billion every year – at a time when we are trying to rebuild the public finances.
Instead, our plan allows us to provide more generous support, faster, to those who need it most, providing 28m households with at least £200, and the vast majority receiving £350.
It is fair, it is targeted, it is proportionate – it is the right way to help people with the spike in energy costs.
Mr Speaker,
Today’s announcements are just one part of the government’s plan to tackle this country’s most pressing economic challenges.
A plan for growth – with record investments in infrastructure, innovation and skills.
A plan to restore the public finances – with debt falling by the end of this Parliament.
A plan to cut waiting lists and back the NHS with £29bn over three years and a permanent new source of funding.
And, with the measures I’ve announced today – a plan to help with the rising cost of energy with £350 more in the pockets of tens of millions of hard working families.
That’s our plan to build a stronger economy – not just today but for the long term.
And I commend it to this House.
Commenting on the energy cap rise, interest rate rise and the Chancellor’s measures to address the cost of living crisis, TUC General Secretary Frances O’Grady said: “The Chancellor’s announcement is hopelessly inadequate. For most families it’s just £7 a week and more than half must be paid back.
“It’s too little, it’s poorly targeted, and it’s stop gap measures instead of fixing the big problems.
“Britain needs a pay rise. The best way to help families is to get wages growing again. But this government has no plan to end pay misery.
“Ministers should be getting urgent help to families that need it most through raising universal credit. And we need a windfall tax on the excessive profits from North Sea gas to cut bills and boost investment in affordable energy.”
Responding to today’s announcements on energy costs and the cost of living, Katie Schmuecker, Deputy Director of Policy and Partnerships for the independent Joseph Rowntree Foundation said: “The Chancellor has offered cold comfort to families in poverty, who are already rationing what they can spend on essentials such as heating and food.
“These families are now expected to find at least half of the eye watering increases in energy bills, when many are already getting into debt to keep their houses warm and food on the table.
“Three quarters of those who can claim the enhanced support are not in poverty. Meanwhile inflation is set to rise at more than double the rate of benefits. This support will not get people through the next few months and it will not protect those most at risk of hardship.
“People in poverty are hit hardest by all these pressures because our social security system is simply not offering adequate support, and until that changes they will continue to be exposed to every economic shock.
“The Chancellor has made his choice, the harder choices will now be coming for those who still can’t afford essentials for themselves and their families.”
University of Birmingham’s Harriet Thomson on the rise of energy price caps: “This news comes at a time when families across Great Britain have already been facing years of rapidly increasing energy prices, as well as chaotic energy market conditions with the collapse of around 20 energy supplies since January 2021 alone.
“Just last month, ONS data found that 2 in 3 adults said their costs of living had gone up in the past month, with 79% of those attributing blame to gas and electricity prices.
“We know from the extensive body of existing evidence on this topic that lower income households will be disproportionately hit by the price cap increase, risking pushing millions more into a situation fuel poverty.
“This will have serious consequences for physical and mental health, social isolation, and educational attainment, with households forced to make difficult everyday decisions over whether to ‘heat or eat’.
“Moreover, these price increases are likely to push more people into using risky and/or polluting alternative energy sources, such as DIY candle heaters that have been linked to house fires, burning scrap wood and other flammable materials, and digging up peat. As well as the obvious risks to human life, these approaches will also exacerbate climate change.
“It’s clear that energy companies are reeling from the potent combination of cash flow reductions due to pandemic-related economic pressures on families who are building up more energy debt, and the global gas crisis.
“But the answer is not to burden households with yet more costs. The energy market is broken and needs radical reform – now is the time for the UK government to show ambition and commitment to the nation by investing in deep retrofits of our old and leaky housing stock, and to rollout decentralised renewable energy systems at scale.”
