Tag: cost of living crisis

Cost of Living Support: Sunak acts

£5 BILLION WINDFALL TAX ANNOUNCED

Madam Deputy Speaker, The high inflation we are experiencing now is causing acute distress for the people of this country. I know they are worried, I know people are struggling. I want to explain what is happening, why it is happening, and what we propose to do about it.

I trust the British people, and I know they understand no government can solve every problem, particularly the complex and global challenge of inflation.

But this government will never stop trying to help people, to fix problems where we can, to do what is right – as we did throughout the pandemic.

We need to make sure that for those whom the struggle is too hard…and for whom the risks are too great…they are supported.

This government will not sit idly by whilst there is a risk that some in our country might be set so far back… they might never recover.

This is simply unacceptable. I will never allow that happen.

And I want to reassure everybody – we will get through this.

We have the tools and the determination we need to combat and reduce inflation.

We will make sure the most vulnerable and the least well off get the support they need at this time of difficulty.

And we will turn this moment of difficulty into a springboard for economic renewal and growth.

With more jobs, higher skills, greater investment – our plan for a stronger economy.

Madam Deputy Speaker, Before I turn to the details of our plan, let me put into context for the House, the challenge we face.

This country is now experiencing the highest rate of inflation we have seen for forty years.

The Bank of England expect inflation to average around 9% this year.

Our exposure to global shocks continues to explain most of the inflation above the 2% target.

Supply chain disruption as the world reopened from Covid…

…combined with Russia’s invasion of Ukraine…

…and potentially exacerbated by recent lockdowns in China…

…are all contributing to significant price increases for goods and energy.

However, over the course of this year, the situation has evolved and has become more serious.

There are areas of particular concern.

Even excluding energy and food, core inflation has become broader based and elevated.

Of the basket of goods and services we use to measure inflation, a record proportion are seeing above average price increases.

Also, we are acutely exposed to the European energy price shock and, like the US, we have a tight labour market.

Make no mistake – the lowest unemployment in almost 50 years, just months after averting a jobs crisis during the pandemic, is good news.

But combined with the shock to European energy prices, it does contribute to the UK’s relatively high rate of inflation.

And lastly, as the Bank have noted, longer-term inflation expectations have risen above their historical averages, by more than they are in the US and Europe.

We cannot and must not allow short term inflationary pressures to lead people to expect that high inflation will continue over the long term.

Because Madam Deputy Speaker

We can get inflation under control.

It is not some abstract force outside our grasp.

It may take time, but we have the tools we need and the resolve it will take to reduce inflation.

Madam Deputy Speaker,

We have three specific tools available to combat and reduce inflation – and we are using them all.

Independent monetary policy. Fiscal responsibility. And supply side activism.

First, our primary tool is a strong, independent monetary policy.

Since control of monetary policy was taken out of the hands of politicians 25 years ago, inflation has averaged precisely 2%.

It is right the Bank of England are independent.

And I know the Governor and his team will take decisive action to get inflation back on target and ensure inflation expectations remain firmly anchored.

Second, we need responsible fiscal policy.

That means providing fiscal support where required but not making the situation unnecessarily worse…causing inflation, interest, and mortgage rates to go up further than they otherwise would.

Excessively adding fiscal stimulus into a supply constrained economy…

…especially one in which households and businesses have built up over £300 billion of excess savings…

…risks being counterproductive and increasing inflationary pressures.

In other words, fiscal support should be timely, targeted, and temporary.

Timely, because we need to help people when the shock is at its worst.

Targeted, because unconstrained stimulus will make the problem worse.

And temporary, because if we do not meet our fiscal rules, and ensure the public finances are resilient in the longer run…

…we create even greater risks on inflation, interest rates, and the trend rate of economic growth.

And third, we are taking an activist approach to supply side reforms.

This will increase our productive capacity, ease inflationary pressures, and raise our long-term growth potential.

The PM’s energy security strategy will, over time, reduce bills by increasing energy supply and improving energy efficiency.

The W&P Secretary is moving half a million jobseekers off welfare and into work…

…and doing more to support older people back into the jobs market.

The Home Secretary is making our visa regime for high-skilled migrants one of the most competitive in the world.

And, in the autumn, we will bring forward tax cuts and reforms to encourage businesses to invest more, train more, and innovate more – the path to higher growth.

So, independent monetary policy.

Fiscal responsibility.

Supply side reform.

The country should have confidence, that using these three tools…

…we will combat inflation – and reduce it over time.

But of course, we know that households are being hit hard, right now.

So today, Madam Deputy Speaker, we will provide significant support to the British people.

But as I have said, a critical part of how we are dealing with inflation is responsible fiscal policy.

What this means in practical terms is that as we support people more, we need to think about the fairest way to fund as much of that cost as possible.

The oil and gas sector is making extraordinary profits.

Not as the result of recent changes to risk taking or innovation or efficiency.

But as the result of surging global commodity prices – driven in part by Russia’s war.

And for that reason, I am sympathetic to the argument to tax those profits fairly.

But as ever, there is a sensible middle ground.

We should not be ideological about this…we should be pragmatic.

It is possible to both tax extraordinary profits fairly…and incentivise investment.

And so, like previous governments, including Conservative ones – we will introduce a temporary, targeted, Energy Profits Levy.

But, we have built into the new Levy a new Investment Allowance, similar to the super-deduction…

…that means companies will have a new and significant incentive to reinvest their profits.

The new Levy will be charged on profits of oil and gas companies at a rate of 25%.

It will be temporary, and when oil and gas prices return to historically more normal levels, the Levy will be phased out – and with a sunset clause written into the legislation.

And, crucially, with our new investment allowance, we are nearly doubling the overall investment relief for oil and gas companies.

This means that, for every £1 a company invests, they’ll get back 90 per cent in tax relief.

So the more a company invests, the less tax they will pay.

And we understand that certain parts of the electricity generation sector are also making extraordinary profits.

The reason for this is the way our market works.

The price electricity generators are paid is linked not to the costs they incur in providing that electricity…but rather to the price of natural gas – which is extraordinarily high right now.

Other countries like France, Italy, Spain and Greece have already taken measures to correct this.

As set out in the Energy Security Strategy, we are consulting with the power generation sector and investors…

…to drive forward energy market reforms and ensure that the price paid for electricity is more reflective of the costs of production.

Those reforms will take time to implement.

So, in the meantime, we are urgently evaluating the scale of these extraordinary profits…and the appropriate steps to take.

So, Madam Deputy Speaker,

Our Energy Profits Levy will encourage investment, not deter it.

It raises around £5bn revenue over the next year so that we can help families with the cost of living.

And it avoids having to increase our debt burden further.

Because there is nothing noble in burdening future generations with ever more debt to pay…

…because politicians of the day were too weak to make the tough decisions.

Madam Deputy Speaker,

I know the whole House will agree we have a responsibility to help those who…

…through no fault of their own…

…are paying the highest price for the inflation we face.

To help with the cost of living, we are going to provide significant, targeted support to millions of the most vulnerable people in our society:

Those on the lowest incomes, pensioners, and disabled people.

First, people on the lowest incomes.

Over eight million households already have incomes low enough for the state to be supporting their cost of living through the welfare system.

They could be temporarily unemployed and looking for work.

Unable to work because of long-term sickness or disability.

Or on low pay and using benefits to top up their wages.

Right now, they face incredibly difficult choices.

So, I can announce today we will send, directly to around eight million of the lowest income households, a one-off Cost of Living Payment of £650.

Support worth over £5bn to give vulnerable people certainty that we are standing by them at this challenging time.

DWP will make the payment in two lump sums – the first from July, the second in autumn, with payments from HMRC for those on Tax Credits, following shortly after.

There is no need for people to fill out complicated forms or bureaucracy – we will send the payment straight into their bank accounts.

Our policy will benefit over eight million households in receipt of means-tested benefits, from July.

Uprating, in that time frame, could only be done for those on Universal Credit.

And our policy will provide a larger average payment this year of £650.

Whereas uprating the same benefits by 9% would only be worth, on average, £530.

There are two further groups who will need targeted extra support.

Many pensioners are disproportionately impacted by higher energy costs.

They can’t always increase their incomes through work.

And, because they spend more time at home, and are more vulnerable, they often need to keep the heating on for longer.

And we estimate many people who are eligible for Pension Credit are not currently claiming it…

…which means there will be many vulnerable pensioners not receiving means-tested benefits.

So, I can announce today that, from the autumn, we will send over eight million pensioner households who receive the Winter Fuel Payment – an extra, one-off Pensioner Cost of Living Payment of £300.

Disabled people also face extra costs in their day-to-day lives – like having energy-intensive equipment around the home or workplace.

So, to help the 6 million people who receive non-means tested disability benefits, we will send them, from September…

…an extra, one-off Disability Cost of Living Payment, worth £150.

Many disabled people will also receive the payment of £650 I have already announced, taking their total cost of living payments to £800.

And I can reassure the House that next year, subject to the Secretary of State’s review, benefits will be uprated by this September’s CPI…

…which, on current forecasts, is likely to be significantly higher than the forecast inflation rate for next year.

Similarly, the triple lock will apply for the state pension.

Of course, we recognise the risk that, as with any policy, there may be small numbers of people who fall between the cracks.

For example, it is not possible right now for DWP or HMRC to identify people on Housing Benefit who are not also claiming other benefits.

So, to support them and others, we will extend the Household Support Fund, delivered by Local Authorities, by £500m from October.

This is a significant set of interventions to support the most vulnerable in our country.

We will legislate to deliver this support on the same terms in every part of the United Kingdom – including Northern Ireland.

And, taken together, our direct cash payments, will help one third of all UK households with the cost of living, support worth over £9bn.

So, Madam Deputy Speaker,

We are meeting our responsibility to provide the most help to those on the lowest incomes.

I believe that is fair and I’m confident the House would agree.

But there are many other families who do not require state support in normal times.

They are also facing challenging times.

Is it fair to leave them unsupported?

The answer must surely be no.

While it is impossible for any government to solve every problem, we can and will ease the burden as we help the entire country through the worst of this crisis.

So, we will provide more support with the rising cost of energy – and that support will be universal.

Earlier this year, we announced £9bn to help with the cost of energy.

Including a Council Tax rebate of £150 for tens of millions of households.

And we plan to provide all households with £200 off their energy bills from October, with the cost of that repaid over the following five years.

Since then, the outlook for energy prices has changed.

I’ve heard people’s concerns about the impact of these repayments on future bills.

So I have decided that those repayments will be cancelled.

So, for the avoidance of doubt, this support is unambiguously a grant.

And furthermore, I have decided that the £200 of support for household energy bills will be doubled to £400 for everyone.

We’re on the side of hard-working families, with £6bn of financial support.

So, Madam Deputy Speaker,

To summarise:

Our strategy is to combat and reduce inflation over time through independent monetary policy, fiscal responsibility, and supply side activism.

We are raising emergency funds to help millions of the most vulnerable families who are struggling right now.

And all households will benefit from universal support for energy bills of £400 – with not a penny to repay.

In total, the measures I’ve announced today provide support worth £15bn.

Combined with the plans we’ve already announced…that means we are supporting families with the cost of living to the tune of £37bn or 1.5% of GDP.

That’s higher or similar to countries like France, Germany, and Italy.

And I’m proud to say that around three quarters of the total support will go to vulnerable households.

As a result of the measures we’ve announced today, and the action we’ve already taken this year:

The vast majority of households will receive £550.

Pensioners will receive £850.

And almost all of the eight million most vulnerable households in the country will, in total, receive support of at least £1,200.

Let me put this into context.

The House will have noted the news from Ofgem earlier this week.

They currently expect the energy price cap to rise in October to £2,800.

That’s an average increase in people’s bills this year of just under £1,200.

The same amount our policies will provide for the most vulnerable this year.

I know there are other pressures.

I am not trying to claim we have solved the entire problem for everyone.

No government could.

But I hope that when people hear the significant steps we are taking…

…the millions we are helping…

…they will feel some of the burden eased, some of the pressures lifted.

And they will know, this Government is standing by them.

And Madam Deputy Speaker in conclusion,

Supporting people with the cost of living is only one part of our plan for a stronger economy…

…A plan that is creating more jobs…

…Cutting taxes for working people…

…Reducing our borrowing and debt…

…Driving businesses to invest and innovate more…

…unleashing a skills revolution…

…Seizing the benefits of Brexit…

…And levelling up growth in all parts of the United Kingdom.

The British people can trust this government because we have a plan for a stronger economy and I commend this Statement to the House.

Cost of living crisis – it’s time to take action, says teachers’ union

Rocketing fuel and energy bills, forecasts of double-digit inflation, and rising interest rates mean misery for many families. And unless there is urgent action from Government, the situation is only going to get worse (writes NASUWT’s Dr. PATRICK ROACH).

Teachers and schools leaders do not need to be reminded of the stark effects of this crisis on their pupils and in their own lives. 

They see it every day in their schools and in their classrooms. 

Children whose parents find themselves in insecure jobs and are struggling to make ends meet. Many relying on food banks and struggling to pay their bills. Hungry pupils can’t concentrate on their learning and the knock-on effects on behaviour are making a challenging job even more stressful. 

Schools are struggling as they find themselves taking on more to try and support children, work which was often supported by local authorities but is no longer provided due to austerity. 

Teaching has become even more challenging because of deep cuts to school budgets, the loss of vital support for children and families and a crisis of teacher and headteacher recruitment and retention. 

Despite ministers’ promises to protect education, in the last decade education spending has fallen by 10%. And the salaries of teachers has fallen too – across the board, teachers’ pay has been slashed by at least 19% since 2010. 

Many teachers are relying on credit cards, overdrafts and some are even using the same foodbanks their pupils’ families rely on as well. Around one in ten teachers work second jobs and many more are worried about their financial situation. 

And in addition to the cost of living crisis, there is a wellbeing crisis caused by extreme workload pressures. 

However, at the Department for Education, ministers are presiding over a system where teachers and headteachers are at breaking point. Unless action is taken now, a desperate situation is set to become even worse. 

Already, one in three student teachers choose not to enter the profession after they’ve qualified because of the stress of the job and 40% of new teachers leave within five years. 

The latest data from our own ‘Big Question’ survey found that two-thirds of teachers are seriously considering quitting the profession – citing workload, wellbeing and pay as key reasons. 

More headteachers are leaving and fewer and fewer teachers are wanting to take their place. 

Perhaps not surprisingly, nine in ten teachers we surveyed report that their job has adversely impacted their mental health in the last year and a disturbing 3% have self-harmed and are experiencing a severe mental health crisis because of the job. 

And on top of that we have the growing problem of Long Covid which is a ticking time-bomb in our schools. 

That’s why the NASUWT is calling for A Better Deal For Teachers on workload, wellbeing and pay. 

As part of our campaign, we’re calling on the Government to recognise that a world-class education system needs highly motivated teachers working in world-class schools and colleges. 

To that end, we want to see: 

  • a substantial real-terms pay rise for every teacher,  
  • an enforceable contractual working time limit for teachers,  
  • the right to switch off and disconnect from work at the end of the day and at weekends,  
  • the ending of fire and rehire practices, 
  • banning zero-hours contracts,  
  • equal rights for supply teachers  
  • scrapping the link between performance and teachers’ pay,  
  • and safer workplaces underpinned by safe and respectful working practices. 

We will be highlighting these demands at the national demonstration that takes place in London on 18th June, where teachers and workers from across the public and private sectors will be demanding action on the cost of living crisis, a decent pay rise for workers and a better deal for all working people. 

It’s time for the Government to understand that the situation needs to change. Teachers are demanding change and so are parents and the general public.  

Spread the word: be there on June 18th – join us, join in, and help win a better deal for teachers. 

More information about the national demonstration can be found here. 

Rent in Scotland is increasing at £41 per month

Rental growth to highs not seen since the Global Financial Crisis

  • 6% strong annual rental growth in Scotland.
  • The proportion of gross earnings used for rent falls to 17.3% for dual renters in Edinburgh.
  • Rental demand is strongest in London, Scotland and Wales with demand levels more than 65% above the five-year average. London’s market is also one of the most constrained when it comes to stock levels, with homes available to rent at just over half the 5-year average, creating the conditions for the sharp rises in rents.
  • Average UK annual rental growth has reached a 14 year high (+11%), with rents increasing to £995 in Q1 2021, an extra £88 a month compared to the start of the pandemic 
  • On average, UK tenants are staying in their rental properties for an extra five months compared to five years ago, with the average tenancy length up to 75 weeks, from 51 weeks at the start of 2017. 

The highest rental growth since the Global Financial Crisis, coupled with the cost of living crisis, is putting increased pressure on renters – according to Zoopla, the UK’s leading property destination, in its quarterly Rental Market Report. 

Higher rents and cost of living magnify  pressures faced by renters

Average UK annual rental growth has reached a 14 year high (+11%), with rents increasing to £995 in Q1 2021. This represents an increase of £88 a month compared to the start of the pandemic and follows a strong bounce back from 

last year, when average UK rents were down by more than 1%, despite wage growth peaking at 8.8% last summer. 

For renters, this has led to a significant increase in the proportion of gross income spent on rent, particularly in London where it has risen to a significant 52% for a single earner (a level not seen since March 2020).

This falls to 26% for sharers and means that a new let agreed for an average rental property in London will cost more than £20,000 in rent over the next 12 months – putting significant pressure on renters already dealing with the backdrop of the cost of living crisis.

In the UK as a whole, the average rent now accounts for over a third of gross income (37%) for a single earner. Around a third of renters live alone, according to the English Housing Survey. 

There’s also been a strong bounce back in rental growth in London from falls of 10% seen last year. Average annual rental growth in the capital rose to 15% at the end of Q1 – driven by demand for flats from students, office workers and international demand. 

Demand for rental property continues to outpace supply across the country, pushing up rents, although the rate of rental growth will slow through the second half of the year  

Stock constraints leading to longer tenancies

With renters facing increased pressure on their disposable income – there’s been a marked increase in tenants deciding to stay in their rental property for longer. 

On average, UK tenants are staying in their rental properties for an extra 5 months compared to five years ago, with the average tenancy length up to 75 weeks, from 51 weeks at the start of 2017. 

Interestingly, this trend has extended beyond lockdowns when the ability to move was hampered and indicates that landlords with tenants in situ may not be raising rents at the same rate as rental growth.

Rental demand is strongest in Scotland, Wales and London, with demand levels more than 65% above the five-year average. London’s market is also one of the most constrained when it comes to stock levels, with homes available to rent at just over half the 5-year average, creating the conditions for the sharp rises in rents. 

Rental markets remain highly localised

The rental market remains highly localised, with the most affordable rental markets for dual earners located in more rural areas including Great Yarmouth in the East of England, South Somerset in the South West and North East Lincolnshire in Yorkshire & the Humber. In these markets, average rents account for up to 15% of joint gross income.

In London, Bromley is the most affordable rental market, where average rents account for 19% of joint gross income. In the North West, Copeland, a local authority on the edge of the Lake District, encompassing the towns of Whitehaven and Cleator Moor is the most affordable rental market. 

Gráinne Gilmore, Head of Research at Zoopla comments: ““UK rental growth is being driven by high rental demand and limited supply, trends that are more pronounced in city centres.  The surge of post-pandemic pent-up rental demand will normalise through Q2 and Q3 however, which means rental growth levels will start to ease. 

“Affordability considerations will also start to put a limit on further rental growth although this may occur at different times depending on location. Rents are likely to continue rising for longer in areas which have the most constrained stock levels – currently London, Scotland and the South West.” 

Gareth Atkins, Managing Director, Lettings at Foxtons comments: “ “The tenancy renewal numbers we have seen so far in 2022 are unprecedented. Steadily increasing demand, severely limited stock and a swift rise in rental prices are all compelling reasons to renew – and renters are responding.

“Through Foxtons renewals department, we have seen a 29% rise in renewals year-on-year vs 2021. Renters are also choosing longer tenancies to avoid a market in flux; our deal length for renewals has gone up 9% in 2022, reaching an average tenancy of 15.7 months.” 

https://www.foxtons.co.uk/

Civil Service job cuts: Union responds

NATIONAL STRIKE ‘VERY MUCH ON THE TABLE’

PCS has warned of the consequences for everyone who relies on public services of Boris Johnson’s plans to cut up to 91,000 civil service jobs to tackle the cost-of-living crisis.

It is understood the prime minister wants to see civil service staffing levels cut to 2016 levels.

PCS General Secretary Mark Serwotka condemned the plans and said: “Cuts have consequences.

Not just on those whose jobs are being sacrificed to throw red meat to the dwindling number of Conservative voters, but on everyone who relies on the services our members provide. 

“The government complains about longer delays for passports and driving licences at the same time as sacking the people who are working so hard to clear the backlog. 

“Let’s be clear, this is not about efficiency. This is about the prime minister trying to create a smokescreen to detract from his utter shambles of a government. 

“He has chosen to cause our cost-of-living crisis and is desperate to point the blame somewhere – and he has chosen to point the finger at hard working PCS members who kept the country running throughout the pandemic. 

“Our members will not be the scapegoats for a failing government. We have our conference in 10 days’ time: taking national strike action is very much on the table.” 

Charity offers fuel grant to ex-miners

A CHARITY is offering a £200 grant to former coal miners to help them cope with the rise in fuel costs in 2022.

CISWO – the coal mining charity – has launched the scheme to provide some support towards combatting the huge hike in the energy price cap which came into effect in April.

The one-off grant will be available to former coal miners, or their partners or widows, who are identified as being particularly vulnerable due to being on a low income, live in their own home and are responsible for paying for energy costs.

It is also only available to those former mineworkers who have ten years’ service in the industry or those whose last place of work was in the industry. Only one grant is available per household.

The price rises will see millions of people having to pay around £700 more each year to heat their homes.

And with former miners often suffering from health issues, poor mobility and managing on low incomes, they may be disproportionately impacted by the changes.

Nicola Didlock, Chief Executive at CISWO, said: “We are very aware that many of our beneficiaries are vulnerable and susceptible to the cold, especially those on low incomes and trying to cope with ill-health, mobility issues and older properties to maintain.

“We want to ensure that those individuals are identified and supported to keep warm and healthy, particularly during the colder months as the energy price rise begins to impact those most affected.”

CISWO’s Personal Welfare team will be identifying people in need and supporting them to get the help they are entitled to. As well as the CISWO grant, they will help people to obtain other financial aid and subsidies from the government.

The team will also be on hand to provide information about other support on offer from CISWO for former coal miners and their dependants, including:

  • Confidential home visiting service
  • Advocacy, information, advice and guidance
  • Emotional support
  • Benefit applications
  • Access to mobility equipment
  • Reducing loneliness and isolation
  • Access to holidays and convalescence

For more information about claiming the £200 CISWO grant, visit:

www.ciswo.org.uk 

or call 01506 635 550.

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