Tag: cost of living crisis

Other countries are helping families with energy costs: why can’t we?

Governments across the world are raising wages, cutting tax and announcing hefty financial aid packages for people and workplaces affected by the energy crisis (writes TUC’s NINA REECE):

Last month, the Chancellor Rishi Sunak announced a package of support that he claimed would help UK workers and businesses survive crippling energy costs. But it failed to boost pay, raise benefits or help low-income households.

War in Ukraine is exposing the cracks in a global energy system that privileges profit over people and the climate and is too reliant on international trade in fossil fuels. The result is a massive increase in energy costs that is hurling people into poverty while energy companies announce another year of eye-watering profit.

But the Conservative government’s decision not to help the people or sectors most affected by the energy crisis is the exception, not the rule. Here is how other governments across Europe are providing support.

Germany

In Germany, €16billion (£13.4billion) has been made available to ease the burden of rising costs. The support package includes a €9 pass for commuters, giving them a month’s unlimited use of public transport. Making public transport more accessible in the UK is key to reaching our emissions targets. 

There is a one-off €300 tax cut for individuals, extra discounts for low-income families and fuel taxes will be cut for three months, with the price per litre cut by €0.30 for petrol and €0.14 for diesel. 

Importantly, this package includes a commitment to reducing German reliance on gas, oil and fossil fuels long term. 

Germany is also set to raise the national minimum wage by 15 per cent, benefitting nearly 6.2 million low-paid workers – two thirds of them women – giving Germany the second-highest minimum wage in Europe. The rise, agreed as part of the coalition deal, will also cover self-employed and flexible workers.

Nordic countries

A six million Swedish kronor (£473m) pot was set aside by the Swedish government to soften the impact of soaring bills. This may not sound like a lot, but with population that is fraction of that of the UK – it is significant. The government has also issued winter bill subsidies of up to 6000 kronor (£488) for 1.8m households from winter into 2022.

The Norwegian government’s package of measures to help households totals more than eight billion kronor (£664m). In January, Norway even committed to covering 80 per cent of electricity costs for a short period whenever the rate for electricity is above 70 Norwegian øre (6p) per kilowatt-hour.

France

President Macron is targeting energy companies.

EDF, the state energy provider, will charge electricity at below market rate and will take an €8.4bn financial hit. It has also been ordered to sell nuclear power to rivals at below current market rate as its reactors generate 70% of the country’s electricity.

This month, the CEO of Total Energie has also announced a freeze on dividends. In the UK, despite massive profits, no caps or restrictions have been placed on the Big Six energy providers.

The French government has also cut electricity taxes in a bid to slow the increase to bills. While here in the UK, gaps in the Chancellor’s support package means the energy crisis will hit the poorest families the hardest, in France 5.8million low-income households were given a €100 payment for energy bills in January this year.

Spain

The Spanish government’s €16billion response to the energy crisis is the most comprehensive. The focus is on curbing profits and protecting jobs.

Some €2billion will be raised from a windfall tax on energy providers. €500million in subsidies will be provided for electricity-intensive industries and companies that receive this aid won’t be able to dismiss staff to balance out their rising energy costs.

€10billion of state loans will also be given to companies in other industries who are forced to spend more on energy. There is protection for truckers and professional drivers with €450million in direct aid for transport professionals.

And for families and individuals, a fuel sales subsidy of €1.4billion will reduce prices by €0.20 a litre, making a full tank about €9 cheaper, far better than Rishi Sunak’s 5p cut to fuel duty which would take just £2.25 off the cost of a full tank.

These responses from other countries show that our government can do more to help families and industries survive what the Governor of the Bank of England calls a ‘historic shock’ to our living standards. Households currently face an annual energy bill of £2000 and prices are to rise again in October.

That’s why the TUC is calling for an Emergency Budget: Rishi Sunak must come back and provide a proper package of support for families.

Sign petition to demand action from Rishi SunakRishi Sunak must come back to parliament and present an Emergency Budget. We need a proper package of economic support for families.

Sign petition

Tackling the cost of living crisis

Support is being expanded to improve the energy efficiency of homes and tackle energy costs.  

In response to the cost of living crisis, three key Scottish Government energy efficiency and heat programmes will be boosted from April.

These include:

  • Expanding the Home Energy Scotland (HES) advice service, which provides free, impartial advice available to all households in Scotland on making homes warmer, greener and easier to heat. Capacity will be increased by 20% to support an extra 12,000 households a year, whilst a service offering bespoke advice to the most vulnerable households will be doubled.
  • Widening the eligibility criteria of the Scottish Government’s flagship Warmer Homes Scotland fuel poverty programme to include more groups within the 60 – 75 years age range.
  • Increasing the level of funding individual fuel poor households could benefit from through the local authority-led Area Based Schemes.

More than £160 million of funding is being invested this year to help make Scotland’s homes and buildings warmer and more efficient, supporting efforts to tackle fuel poverty whilst helping householders manage their energy bills and reduce carbon emissions.

Zero Carbon Buildings Minister Patrick Harvie said: “Everyone needs a safe, warm place to call home. I am acutely aware that soaring energy prices will be causing many people to worry about the cost of their fuel bills and it is vital that people struggling with energy bills get the information and support they need, while governments step up with appropriate actions.

“We are using all powers and resources available to us to support people through the cost of living crisis and the Scottish Budget last month included a package of measures to provide immediate help with rising bills. At the same time, powers relating to energy markets remain reserved and we have repeatedly called for the UK Government to urgently take further, tangible actions to support households.

“However, immediate help also has to go side by side with longer term action. Investing in energy efficiency is the best buffer against the ebb and flow of global energy prices.  That is why we are boosting energy efficiency programmes today and over the whole parliamentary term.”

Householders can access free and impartial support through Home Energy Scotland to improve the energy efficiency of their homes.

Home Energy Scotland can be contacted on their freephone number 0808 808 2282 or via the Home Energy Scotland website. 

Top tips to combat Cost of Living Crisis

PRACTICAL POINTERS TO HELP BATTEN DOWN THE HATCHES AGAINST SPIRALLING ENERGY COSTS

The last two years has created the perfect storm for cost-of-living problems across the UK and it’s speculated that things could get worse by April. 

As many households struggle to reach the first payday since before Christmas, we explore the measures households can take now to help make things more manageable.

New research shows that lower income households in the UK may have to spend half their income on energy. The industry regulator, Ofgem, has also announced that it will increase price caps in April, painting a bleak picture for some consumers.

UK households should double check they’ve made use of all the help available this winter such as:

·        Government schemes: research government schemes like the Winter Fuel Payment which provides £100 to £300 to help pay heating bills. Customers are eligible for the scheme if they were born on or before 26 September 1955.* Be aware that the government is also exploring options such as making payments to energy suppliers to soften the blow to consumers.

·        Switch providers: according to Ofgem, households can save around £360 every year. Switching provider doesn’t just help save money, it can also allow consumers to seek out more environmentally friendly suppliers and those with better customer service. 

·        Tax relief: check out the tax relief option, which allows anyone working at home on a regular basis to claim relief on gas and electricity bills – as well as metered water and business phone calls. HMRC are offering relief worth £312 per year with no need to provide receipts or factor in any complicated calculations. 

·        Discounts and efficiency checks:  use energy efficient lightbulbs – a relatively inexpensive solution which helps to reduce costs over a long period of time.  Also, look out for schemes such as the Warm Home Discount that provide a one off discount of £140 off the winter electricity bill between September and March.**

Greg Wilson, Founder of energy comparison website Quotezone.co.uk, comments: “Given the upcoming rise in energy price caps in April, it’s important that people get on the front foot and look for ways to save.

“If you’re eligible, making use of the government’s schemes to help with the cost of energy bills is a good start. There are many schemes out there, including the Warm Home Discount and Winter Fuel Payments scheme, that should make bills a little easier to pay. These schemes are targeted to both the elderly and those on a low-income, providing support to the most vulnerable demographics.

“But there are also many other ways to tackle increasing energy cost – one of the most effective ways is to switch provider, a process which has never been easier. By choosing an Ofgem-accredited comparison site, consumers can get an understanding of what’s on offer across a range of energy suppliers – instantly providing an overview of more competitive prices.”

Quotezone.co.uk is one of the leading price comparison websites in the UK, helping over 3 million users find more competitive deals.

Cost of Living Crisis: Join the protests!

Prices are rising but people are fighting back!

The cost of living crisis is going to cause hardship for millions of people. Huge rises in energy prices will see oil companies make vast profits whilst people struggle to heat their homes.

Protests will take place across the UK this weekend.

Speakers from lots of organisations making demands for a fairer society.

Join an event near you!

📅Sat 12 Feb 1pm

📍Glasgow: facebook.com/events/1545395552527681

📍Edinburgh: facebook.com/events/628238008287873

Funeral director’s Pay What You Can offer to bereaved families

The new year has got off to a bad start, and everyone has felt the negative effects of the recent restrictions caused by the rise of the Omicron variant. Plus the cost of basic household bills are rising. So, for those from low-income families who experience a bereavement, life must seem especially difficult.

So, a charity-owned funeral director has responded to the current Covid and cost of living crisis by offering pay-what-you can funerals for Lothian residents who have lost someone for the remainder of January.

2021 was a tough year for many. It also started with severe Covid restrictions which disproportionately affected low-income workers. Later in the year, it was announced that the £20 uplift in Universal Credit was to be removed, affecting over 450,000 Scottish households.

And this year, hard-up families face a rise in energy prices and inflation, leading to what has been described as “a cost-of-living crisis”. So, not surprisingly, 2022 may be looking very bleak for some Scottish families.

John Halliday, Co-Founder of Caledonia Cremation today announces a scheme to support bereaved people experiencing hardship this January: “Caledonia Cremation is not a traditional funeral director. When we launched in 2018, we became Scotland’s only social-enterprise funeral director. That means our first concern is people and not profits.

“I see all around that this pandemic has made rich people richer and poorer people poorer. I strongly feel it is up to society to do our bit now in helping those worst affected, however we can.

“People need better food, cheaper housing, catch-up education and help back into work. We can’t do all those things, but what we can do something about the cost of funerals.

“Sadly, it is a fact of life that everyone needs a funeral. But for some people their funeral is the most expensive purchase they ever make. The average cost of a basic funeral is over four thousand pounds.

“So, our contribution is this – we’ve decided to remove all our fees and just let bereaved families pay-what- you-can during this pandemic recovery period.

“There is no means testing, we trust people to know what they can and cannot afford.

“No one anywhere has ever done this before, so we are learning as we go.

“If someone wants to know the usual price, we can tell them. If generous people want to add more towards our fundraising to tackle the root causes of poverty, that is fantastic. But if all they can find to cover the funeral is a few hundred pounds, that’s absolutely fine too.

“No one should judge your worth based on the size of your savings.

“We hope everyone has a happy and healthy 2022, but if the unthinkable happens, then please know you are not alone – we are here and will do everything we can to support you throughout your loss.”

GMB encourages everyone to get booster – but workers need pay boost too

Governments yet again ask key frontline workers for huge national effort, but they are still not paying them properly, says GMB 

GMB Union encourages everyone to get their booster – but says frontline workers need a pay boost too. 

Rehana Azam, GMB National Secretary, said: “There has been no respite for our frontline workers throughout the covid pandemic. 

“They’ve put themselves in harm’s way to serve the public – particularly when governments and employers failed to ensure the provision of proper PPE and testing to keep them safe at work.  

“GMB members know the importance of keeping safe and well, that’s why we’re encouraging everyone across the four nations to get their booster. 

“But as governments, yet again, ask our NHS, social care and key frontline workers to undertake another huge national effort, they are still not paying these workers properly. 

“Against the backdrop of covid, there is a cost-of-living crisis, key services face an understaffing crisis and the people delivering them are enduring a wage crisis. 

“That’s not good enough and it’s got to be confronted.  

“Our key workers must be paid properly – it’s the least they deserve for everything they are doing for all of us.”