Tag: Politics

Downing Street showdown does nothing to address energy cost fears

The Prime Minister, Chancellor Nadhim Zahawi and Business and Energy Secretary Kwasi Kwarteng met industry leaders from the electricity sector yesterday to discuss what more they can do to help people struggling with rising energy prices – but the meeting did nothing to resolve the impending crisis.

The Prime Minister, Chancellor, Business and Energy Secretary stressed the need to act in the interest of the country in the face of rising energy prices caused by Putin’s illegal invasion of Ukraine and how vital it was that the Western world continued to stand by the Ukrainian people during their battle for survival.

The Chancellor and energy firms agreed to work closely over the coming weeks to ensure that the public, including vulnerable customers, are supported as unprecedented global events drive higher energy costs.

Government support worth £37 billion is being provided this year to help people with the rising cost of living, including £1,200 for the most vulnerable households over the course of the year and £400 discounted off everyone’s energy bills from October.

It was noted that the market is not always functioning for consumers, and extraordinarily high bills will ultimately damage energy companies.

As set out in the Energy Security Strategy, the Government has launched a consultation to drive forward market reforms and ensure the market works better for consumers. Discussion focussed on how Government and industry can collectively drive forward reforms to ensure the market delivers lower prices.

The Prime Minister, Chancellor and Business and Energy Secretary emphasised the importance of investing in North Sea oil and gas, renewables, biomass and nuclear to strengthen our domestic energy security.

The Chancellor added the Government continues to evaluate the extraordinary profits seen in certain parts of the electricity generation sector and the appropriate and proportionate steps to take.

The Prime Minister set out that it will be for the next Prime Minister to make significant fiscal decisions.

Prime Minister Boris Johnson said: “Countries around the world are feeling the impact of Putin’s damaging war in Ukraine. We know that this will be a difficult winter for people across the UK, which is why we are doing everything we can to support them and must continue to do so.

“Following our meeting today, we will keep urging the electricity sector to continue working on ways we can ease the cost of living pressures and to invest further and faster in British energy security.

“We are continuing to roll out government support over the coming months, including the second £324 instalment of the cost of living payment for vulnerable households, extra help for pensioners and those with disabilities, and the £400 energy bills discount for all households.”

Chancellor of the Exchequer, Nadhim Zahawi, said: “This morning I hosted industry leaders from the electricity sector to discuss what more they can do to work with Government and act in the interest of the country in the face of rising prices caused by Putin’s illegal invasion of Ukraine.

“We have already acted to protect households with £400 off energy bills and direct payments of £1,200 for 8 million of the most vulnerable British families. In the spirit of national unity, they agreed to work with us to do more to help the people who most need it.”

The meeting was attended by representatives from:

  • EDF
  • RWE
  • E.ON
  • Drax
  • Orsted
  • Uniper
  • National Grid
  • SSE
  • ScottishPower
  • Centrica
  • Octopus Energy
  • Vitol
  • Intergen
  • Greencoat Capital
  • Energy UK

Scottish Government Resilience Room convened to discuss ‘cost emergency’

The First Minister chaired the Scottish Government Resilience Committee yesterday (August 11) to discuss urgent steps to mitigate the growing cost emergency which is affecting people and businesses.

Ministers assessed the current situation and likely scenarios in the months ahead and agreed a number of immediate actions. The Scottish Government will:

  • Continue to maximise the direct financial assistance available to those most in need, principally through ongoing work to extend eligibility for and increase the value of the Scottish Child Payment
  • Undertake an emergency budget review to assess any and all opportunities to redirect additional resources to those most in need, reduce the burdens on business and stimulate the Scottish economy
  • Consider urgently all options within devolved powers for regulatory action to limit increases in costs for people, businesses and other organisations
  • Bring together energy companies, banks and food retailers to examine what further help can be provided by these businesses to limit cost increases and protect those most vulnerable 
  • Work with partners to strengthen the safety net of emergency food/fuel provision, prioritising a ‘cash first’ approach
  • Provide further advice to households on using energy more efficiently and reducing consumption

The Resilience Committee will meet on a weekly basis for the foreseeable future to oversee and direct progress on these immediate actions and keep under ongoing review any further steps that the Scottish Government can take.

In addition to doing everything possible within its powers, the Scottish Government is renewing its call for urgent and substantial action from the UK Government including:

  • An immediate doubling of the direct financial support already provided, with payments made by October. It is estimated that for an out-of-work couple with two children, the payments already announced by the UK Government fall around £1,600 short of meeting the recent changes to benefits and living costs – a gap that must be filled
  • Cancellation of the forthcoming increase in the energy price cap, followed by urgent work between the government and energy companies on energy market reforms and associated financing options to ensure sustainable costs for consumers in the long term
  • The urgent introduction of an energy price cap for Small and Medium Enterprises
  • Support for business to prevent closures due to energy price rises and investment in economic stimulus to minimise the scale of the projected recession
  • A further windfall tax to ensure nationalisation of the profits being made out of the current pressures
  • Additional funding to support public sector pay increases and protect the recovery of public services from the pandemic

The First Minister said: “It is clear that the UK currently faces a rapidly escalating emergency that goes beyond simply the cost of living and is now a more general cost of everything crisis. This emergency may be of a different nature to the COVID-19 pandemic, but it is on a similar scale.

“In the absence of substantial and urgent action, this emergency will cause acute deprivation and suffering. It will affect access to practical necessities for millions of people across the UK. Bluntly, it will cost lives.

“To illustrate the severity of the situation, the Scottish Government estimates that, even with current UK Government mitigations, at least 700,000 households in Scotland – 30% of all households – will be living in extreme fuel poverty by October. That number could be even higher, if the Ofgem price cap for October 2022 is above £2,800. 

“It is essential, therefore, that the response from government at every level is commensurate, in scale and speed, to the nature and magnitude of the emergency.

“In developing a response, governments must first and foremost address immediate need. We must all focus on supporting individuals, businesses and jobs by addressing the principal root causes of the problem.

“Scottish Ministers are clear that the powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government. This is reflected in the actions we have proposed and set out today.

“At the same time, the Scottish Government will continue to do everything within our resources and powers to help those most affected.”

‘Boris, We Need To Talk’: FM urges action to address cost of living crisis

Sturgeon calls for emergency meeting

The First Minister has sought an emergency meeting of the Prime Minister and Heads of devolved Government Council to agree steps to help people in need as a result of the cost of living crisis.

In a letter to the Prime Minister urging the suggested September meeting be brought forward due to a “fast deteriorating” situation the First Minister made her view clear that “many people across the UK simply cannot afford to wait until September for further action to be taken”.

The meeting between leaders of the devolved governments and the UK Government would provide an opportunity to agree actions that can be taken now and formulate a plan of action for the long term. 

The Scottish Government Resilience Room (SGoRR) will convene this week to discuss what steps can be taken to urgently ease the burden on households across Scotland, both now and in the future.

First Minister Nicola Sturgeon said: “While we will continue to take all actions available to us within devolved responsibilities and budgets – the Scottish Government is investing almost £3 billion this year in a range of measures which will help address the cost of living pressures – it is a statement of fact that many of the levers which would make the biggest difference lie with the UK Government.

“It is also the case that only the UK Government can access and make available resources on the scale required. Therefore, actions by devolved governments alone – though important  – will not be enough to meet the unprecedented challenges we face.  

“Action is needed now to address significant gaps in help for households, in particular those on low incomes, who are increasingly vulnerable to the impact of rising household costs.

“However, it is also vital, given further increases to energy bills due to be announced later this month, that a substantial plan be developed now to avert and mitigate what will otherwise be a crisis of unprecedented proportions – a crisis in which many people will be unable to feed themselves and their families or heat their homes.   

“While few will escape some impact of the cost of living crisis, these impacts are not being experienced evenly. That is why the focus must be on providing targeted support to those most adversely impacted, rather than an irresponsible reduction in broad-based taxes which will benefit the relatively better off over those most in need.

“The current crisis requires clear, focused and determined leadership and co-operation to develop and deliver – at pace – a package of interventions to protect those most impacted.”

The First Minister’s letter to the Prime Minister can be read in full online. 

Levelling Up reaches the Hebrides

UK Government Minister for Scotland Iain Stewart has visited the Hebrides to meet community groups, businesses and council representatives.

Levelling up was top of the agenda as UK Government Minister for Scotland Iain Stewart visited innovative island businesses and community projects on a five-day visit to Skye, Lewis and Harris, ahead of the inaugural Islands Forum later this year.

Starting his visit in Skye, Minister Stewart met with the Staffin Community Trust and local fishermen to discuss plans to redevelop Staffin Harbour and consider ways the UK Government could support the project. He then headed to Skye’s largest town, Portree, to host a roundtable discussion with representatives from local community groups, where he invited views on how levelling up could enhance the area.

Minister Stewart at Staffin Harbour, Skye

The Minister then made his way to Harris where he paid a visit to the Harris Distillery. He enjoyed hearing about how the island-based enterprise has grown through training and employing young people from the local area, meaning they don’t have to leave the island for work.

Minister Stewart at Harris Distillery

In Lewis, Minister Stewart’s busy itinerary included meeting Comhairle nan Eilean Siar – Western Isles Council – to talk about how levelling up could benefit the local community.

He visited the headquarters of Gaelic Media Service MG Alba to learn about how they are creating premium Gaelic language content, and also paid a visit to Charles Macleod butchers, makers of the world-renowned Stornoway Black Pudding, to discuss their success in exporting from the island.

Minister Stewart meeting Comhairle nan Eilean Siar in Lewis

He also met with Lewis-based Horshader Community Trust, a charity taking forward green initiatives including decarbonising transport and nurturing trees to create woodland. The trust has received more than £70,000 from the Community Renewal Fund to help local residents gain new skills, support the development of two green projects, and work with business partners to strengthen the island’s renewable energy sector.

Minister Iain Stewart said: “It was a pleasure to visit Skye, Lewis and Harris. From discussing plans to regenerate Staffin Harbour, to seeing how the Horshader Community Trust is making Lewis more sustainable, to hearing how the Harris Distillery is supporting jobs for young people, it’s clear these islands have talent, innovation and resourcefulness in droves.

“It’s also clear that the Islands Growth Deal and investment through the UK Government’s Levelling Up Funds are making a real difference in these places, for the benefit of people who live here.

“However, while our island communities have unique strengths, they also face unique challenges. Infrastructure, transport and depopulation are issues that islands often have to contend with, and must be addressed for our rural areas to truly thrive.

“The Islands Forum was set up to discuss these problems. It will give a platform for those who understand remote communities and their needs best, putting islands at the heart of our Levelling Up agenda which has so far resulted in more than £2 billion being invested directly in Scottish projects.”

The UK Government’s first Islands Forum will take place in Orkney later this year. The forum will put islands at the heart of the Levelling Up agenda, with island communities across the UK invited to discuss common challenges including connectivity, infrastructure and demographic trends.

Regulate non-surgical cosmetic procedures within a year to prevent exploitation, urge MPs

The Government must speed up the introduction of a promised licensing regime for non-surgical cosmetic procedures to prevent vulnerable people being exploited.

The Impact of body image on mental and physical health report identifies a rise in body image dissatisfaction as the driver behind a new market that to date has remained largely unregulated. The dangers posed by non-surgical cosmetic procedures in vulnerable groups were evident throughout the inquiry, say MPs.

The Government has new powers to introduce a licensing regime for non-surgical cosmetic procedures however a consultation on what that regime should look like is still awaited.

Legislation should require online commercial content to carry a logo to identify body images that have been digitally altered while the Government is urged to work with the industry and the ASA to discourage advertisers and influencers from doctoring their images.

The wide-ranging report also calls for a Government review of the growing use of anabolic steroids for cosmetic purposes and proposes a safety campaign for those at risk. Long-term use has been linked with cardiovascular disease and brain changes.

On obesity, MPs were disappointed by a Government decision to delay restrictions on buy-one-get-one-free deals and urge immediate action. The report also calls for further research on tackling obesity while eliminating weight stigma and discrimination.

Health and Social Care Committee Chair Rt Hon Jeremy Hunt said: “The government must act urgently to end the situation where anyone can carry out non-surgical cosmetic procedures, regardless of training or qualifications.

“We heard of some distressing experiences – a conveyor belt approach with procedures carried out with no questions asked, procedures that have gone wrong, the use of filthy premises.

“It was clear throughout our inquiry that some groups are particularly vulnerable to exploitation in this growing market that has gone largely unregulated. We need a timetable now for a licensing regime with patient safety at its centre to reduce those risks.

“We hope that ministers will listen to our recommendations and set about creating the safety standards that anyone seeking treatment has a right to expect.”

body-image-reportDownload

The Conservative Leadership Contest: A Guide to the Policy Landscape 

From cost of living to the Ukraine conflict, the next Prime Minister will face a series of challenges when they enter 10 Downing Street in September.

As the Conservative leadership contest continues, it is important that the debate be substantive and based on evidence. UK in a Changing Europe and Full Fact have partnered to produce a series of evidence led, research-based assessments of the key issues confronting the country. 

The briefings have been written by experts in their field with contributions from the Institute for Fiscal Studies, the London School of Economics, Health Foundation and others. 

We based our choice of issues on the IPSOS Issues Index, topics of most current concern to the UK public, and areas of debate between leadership candidates so far.

The report contains briefings on:

  • Macroeconomics by Stephen Millard (National Institute of Social and Economic Research)
  • Tax and Spend by Ben Zaranko (Institute for Fiscal Studies)
  • Economic Inequality by Robert Joyce (Institute for Fiscal Studies)
  • Education by Carole Willis (National Foundation for Educational Research)
  • Climate, the Environment and Net Zero by Gareth Redmond-King (Energy and Climate Intelligence Unit)
  • Health and Social Care by Anita Charlesworth (Health Foundation)
  • Immigration by Madeleine Sumption and Peter William Walsh (Migration Observatory)
  • Brexit by Anand Menon (UK in a Changing Europe)
  • Housing and Planning by Paul Cheshire (LSE)
  • Security, Defence and Foreign Affairs by Malcolm Chalmers (Royal United Services Institute)
  • The Union by Nicola McEwen (UK in a Changing Europe)
  • Faith and Trust in Politics by Will Jennings and Gerry Stoker (University of Southampton)

Our aim in putting together this collection was not to tell people what to think but to provide information that will help them make up their own minds—as well as equip journalists with the best available evidence as hustings continue 

As the briefings highlight, there are considerable trade-offs both within and between policy areas. With this in mind, we believe that these summaries will provide a useful primer for scrutiny of the candidates’ positions on policy as the contest continues through the Summer.

We hope that the report provides some context for this debate and provides voters with a timely and accessible analysis of the key issues in the leadership contest.

Yours sincerely, 

Anand Menon (UK in a Changing Europe)                                    Will Moy (Full Fact)

UKICE-Full-Fact-Conservative-Leadership-Contest-ReportDownload

Glory Hunters!

PM writes letter of support to England’s Lionesses

Scottish Government gets in on the sporting glory act too

Prime Minister Boris Johnson has written to the England Women’s Football team, wishing them luck in the Euro 2022 final:

At least he didn’t mention the War …

All-female crew to lead RAF flypast over Wembley for Euro 2022 final

A C-130 Hercules transport aircraft, crewed by three women, will be flanked by two Typhoon fighter jets as they fly over Wembley Stadium before England’s historic fixture with Germany.

The aircraft will fly over at 4:57pm, immediately after the national anthems, before kick-off. The Hercules will fly from RAF Brize Norton in Oxfordshire and both Typhoons will take off from RAF Coningsby in Lincolnshire.

Defence Secretary Ben Wallace said: “I wish the best of luck to the Lionesses as they take on Germany at Wembley.

“It’s a landmark day for English football and women’s sport and it’s fantastic that the Royal Air Force will be marking the occasion with a flypast featuring an all-female aircrew.”

The Hercules is captained by Flight Lieutenant Lauren who has been in the Air Force for 12 years. She has deployed all over the world, including Afghanistan, where she helped train the first female Afghan pilots.

Speaking about the flypast, Flight Lieutenant Lauren said: “I am proud to be piloting the lead aircraft for the flypast over Wembley. I’ve flown missions all over the world with the RAF, but this will be one of the most memorable. 

“It’s been inspiring to watch the Lionesses progress and I will be loudly cheering them on as soon as I land back at RAF Brize Norton.”

Ahead of the match, the RAF and RAF Coningsby station Women’s football teams sent good luck messages to the Lionesses.

The Hercules aircraft flies a wide variety of operational missions including the delivery of humanitarian aid, with the ability to airdrop a range of stores and can operate from natural surface landing zones. To conduct these missions, it is vital that Hercules crews are highly skilled in low-level flying. Recently the aircrafts have been supporting NATO exercises in Eastern Europe, airdropping stores for the troops on the ground.

The Typhoon Fighter Ground Reconnaissance Mk 4 (FGR4) is the RAF’s fourth Generation Multi-role combat aircraft. The Typhoon provides Quick Reaction Alert with Crews on 24/7 readiness in defence of the UK, and the aircraft has been flying daily NATO air policing missions in Eastern Europe.

Meanwhile our Scottish Government is also keen to be associated with sporting success:

SUPPORTING THE COMMONWEALTH GAMES

Athletes representing Scotland at the Birmingham 2022 Commonwealth Games have the full support of the Scottish Government, according to Culture Secretary Angus Robertson.

Speaking ahead of arriving at the 2022 Games, Mr Robertson said he hoped Team Scotland would be inspired by their record success at the 2014 Glasgow Commonwealth Games and looked forward to supporting those hoping to bring medals home in badminton, boxing, table tennis, lawn bowls, gymnastics, basketball, swimming and mountain biking.

The week also marks one year to go until Scotland hosts the 2023 UCI Cycling World Championships.

Mr Robertson said: “Scotland is fully behind all those representing our country at the 2022 Commonwealth Games and I want to offer my best wishes to competitors from across the Commonwealth taking part in this year’s games.

“The 2014 Commonwealth Games in Glasgow was a superb, inspiring and enriching event for us all and I hope that many of the athletes competing in Birmingham will draw on that inspiration – including inspiring those Scottish athletes to bring medals home.

“Major events enrich our cultural and sporting life, and the start of Birmingham 2022 also coincides with a countdown to the 2023 UCI Cycling World Championships. From 3-13 August 2023, Scotland will host the biggest cycling event ever held with 13 World Championships combining into one mega event – so let’s capitalise on the excitement of this year’s Games and look forward to the Championships next year.”

Sports Minister Maree Todd said: ““It has been a pleasure to be at the Commonwealth Games to welcome the athletes competing on behalf of Team Scotland. Seeing their dedication and hard work paying off as they participate at this sporting level is inspiring.”

During her time in Birmingham, Ms Todd has officially opened Scotland House, the Scottish Government’s Games base, and has attended the opening ceremony of the Games.

Health Secretary Humza Yousaf will be at the Games next Saturday (6 August) to catch some of Team Scotland in action, as well attending the launch of Athletics Trust Scotland’s campaign to transform lives through the power of athletics at Scotland House.

Angela Constance: Drugs deaths situation remains ‘unacceptable’

Official statistics for 2021 show decrease of just 1%

While welcoming an end to seven annual increases in drugs deaths, Drugs Policy Minister Angela Constance made clear the situation remains “unacceptable”, and work will continue at pace to address the emergency.

The latest National Records of Scotland statistics show 1,330 people lost their lives in 2021 – a decrease of 1% and Ms Constance says it is clear there remains much work to do to save lives.

A national mission was announced in January 2021 to tackle rising death deaths in Scotland with additional funding of £250 million over the course of this Parliament.

The first year of the national mission has seen the introduction of Medication-Assisted Treatment (MAT) Standards, the expansion of residential rehabilitation provision, the setting of a new treatment target, increased funding to community and grass-roots organisations and the laying of ground work for innovation such as Safer Drug Consumption Facilities. 

1,330 people lost their lives to drug misuse in Scotland in 2021, according to latest figures published by National Records of Scotland.

The number is 1% lower than 2020 which makes it the first year since 2013 in which drug misuse deaths have not increased. However, it is still the second highest annual total on record.

Of those who died from the misuse of drugs, 65% were aged between 35 and 54 years old and more than two thirds (70%) were men.

Dundee City had the highest age-standardised drug misuse death rate of all local authority areas (45.2 per 100,000 population for the 5-year period 2017-2021), followed by Glasgow City (44.4) and Inverclyde (35.7).

Julie Ramsay, Vital Events Statistician at NRS, said: “Drug misuse deaths have increased substantially over the past few decades – there were more than five times as many deaths in 2021 compared with 1996. 2021 is the first year since 2013 that drug misuse deaths have not increased.

“In 2021, after adjusting for age, people in the most deprived areas were more than 15 times as likely to have a drug misuse death as those in the least deprived areas. This ratio has widened over the past two decades.”

In 93% of all drug misuse deaths, more than one drug was found to be present in the body, and the type of drugs that are implicated in deaths has been changing. In 2015 there were 191 deaths involving benzodiazepines, last year there were 918, near five times as many.

This increase has mostly been driven by street benzodiazepines rather than those which are prescribed. Of all drug misuse deaths in 2021, 84% involved opiates or opioids (such as heroin, morphine and methadone). 69% involved benzodiazepines (such as diazepam and etizolam).

In 2020 (the most recent year available for the rest of the UK) Scotland’s drug misuse rate was 3.7 times that for the UK as a whole, and higher than that of any European country.

Ms Constance said: “Scotland suffers a terrible toll from drug deaths, leaving families grieving and in pain and my heart goes out to all those affected by the death of a loved one through drugs.

“These latest statistics provide yet more heart-breaking reading, and the situation remains unacceptable. While there is so much more work to do, every life saved means one less family grieving and I am determined we can use this halt in the upward trend of recent years as a platform for real change.

“My focus now is on taking action and delivering new investment to improve services and get more people into the treatment which works for them. Residential rehabilitation is one of a range of treatment options available and today I am visiting River Garden Auchincruive to speak to residents and staff about the services provided. Later I will be meeting some families affected by a loved one’s drug use and asking what more we can do to help.

“I am concerned about the rise in deaths among women and will look to expand on current steps we are taking including the provision of two Mother and Child Residential Recovery Houses which will enable women to receive support while staying with their children.

“Despite regional differences, we are focused on a national mission and I’ll continue to use all the powers at my disposal, including holding local leaders to account in implementing the MAT standards, to drive improvements across Scotland.

“We are already implementing many of the recommendations from The Drug Deaths Taskforce, which issued its final recommendations last week, and I will report back on further actions to Parliament.

“In the first year of the National Mission we built the foundations for change. Now, with the backing of £250 million over the course of this Parliament, we will deliver on those foundations and our new Oversight Group will provide scrutiny, challenge and expert advice on the National Mission as we continue our efforts to improve and save lives.”

River Garden Operations Manager Mikael Heddelin said: “We offer a very different approach to recovery which allows residents to leave behind their addictions.

“Importantly that comes from communal support of peers and meaningful and qualitative work via our on-site social enterprises. We provide training, help develop competence in a range of areas and facilitate reintegration back into society.

“Peer support and lived experience are key elements in the recovery journey at River Garden. Our ethos and culture allows our residents to recover without stigma and the local community play a huge part in what we do.”

River Garden resident Paul said: “I grew up in care and began using drugs at the age of 12. Throughout my life I tried various rehabs, none of them worked.

“At the age of 47 I joined River Garden. I have been here almost two years and I have purpose and self-worth. I’m happy and healthy and I feel good about myself.

“River Garden has been totally transformational for me. I really enjoy the work and the camaraderie. I have made many friends amongst the volunteers, the visitors
and the contactors who work at River Garden.”

Lothian MSP, Miles Briggs commented: ““My deepest condolences are with the family and friends of those who have died due to drugs.

“In Lothian the number of people who died due to drug misuse last year has doubled from ten years ago.

“SNP Ministers approach to tackling drug deaths is an unequivocal failure with drug deaths continuing to rise in Lothian for the last six years.

“If Angela Constance, the Minister for Drugs Policy, can’t reduce drug deaths in her own region of Lothian, then this does not bode well for the rest of Scotland.

“SNP and Green Ministers must get on board with the Scottish Conservatives Right to Rehab Bill, to ensure that everyone who needs rehabilitation for drugs has access to it.

“These latest shocking numbers clearly suggest that there is a particular problem in turning around the situation in Lothian. If that is the case, then SNP Ministers must consider direct control over drug services to drive urgent reforms.”

Link to National Records of Scotland Drug-related deaths in Scotland

Energy bills crisis: Government must act now, says new report

  • New report calls on Government to update its energy bills support to help the most exposed households and consider introducing a social tariff. 
  • Negligent energy regulator Ofgem enabled now bankrupt energy firms and inexperienced CEOs to increase energy bills further.
  • A national homes insulation programme is the permanent solution to bringing down bills and should be launched urgently. 

The Government should immediately update its package of support to help households with soaring energy bills before the cost-of-living crisis grips even harder following October’s energy price cap increase, according to a new report by the Business, Energy and Industrial Strategy Committee. 

It comes as people are feeling the squeeze of 40-year high inflation of 9.4% – to which the cost of energy is a big contributor – as wage increases struggle to keep up. 

Support package out of date 

The Government’s Energy Bills Support Scheme provides a £400 discount on energy bills in October for every household, a £650 means-tested one-off payment to eight million low-income households, £150 for those on disability benefits and £300 for pensioners. This was designed when the forecast for the October price cap was £2,800.

With wholesale energy prices continuing to rise industry experts now estimate that the price cap could increase to £3,244 in October, when the NEA forecast one in three (8.2 million) households face fuel poverty. A further rise is expected in January and MPs on the Committee warn that the size of the package has been ‘eclipsed by the scale of the crisis’.  

Social tariff and support for vulnerable people 

They also raise concerns that the current scheme does not sufficiently target low-income households and those in vulnerable circumstances, with the £400 discount going to some bill payers who don’t need it and repeatedly to people who own multiple homes. The Committee urges the Government to ensure that any update to its support scheme is better targeted at customers who need it the most.  

As low-income households struggle to pay their energy bills and get deeper into debt, MPs call on the Government to work with energy suppliers to develop a scheme to help households pay off debts over a longer period.  

In the longer-term, the report calls out the injustice of vulnerable people, who are unable to pay their energy bills, being moved on to more expensive prepayment meters.

The report labels this as “unacceptable” and urges the Government to consider replacing the market-wide price cap with a discounted social tariff for vulnerable customers, and a relative tariff for the rest of the market – that caps the difference between the cheapest and most expensive tariffs a supplier offers. 

Committee Chair Darren Jones said, “Once again, the energy crisis is racing ahead of the Government. To prevent millions from dropping into unmanageable debt it’s imperative that the support package is updated and implemented before October, when the squeeze will become a full-on throttling of household finances and further tip the economy towards recession.  

“We were told by a number of witnesses, ‘if you think things are bad now, you’ve not seen anything yet’. This Winter is going to be extremely difficult for family finances and it’s therefore critical that public funds are better targeted to those who need it the most.  

“It’s an injustice that the poorest households continue to pay higher energy costs because they’re on prepayment meters. This must end and a social tariff should be brought forward. 

“Ultimately, Ministers know that the long-term solution is to reduce our need for energy through insulation works that keep our homes warm in winter and cool in summer. If the Government is really taking this energy crisis and the country’s net zero targets seriously it will come forward with a bold, fully funded, national home insulation program before the end of the year.” 

Ofgem and market regulation 

Billpayers have been left to pick up the tab for supplier failures, while recent reports show bosses of at least defunct suppliers could be in line for windfalls of tens of millions. The collapse of 30 suppliers since April 2021 (29 at time of writing the report) is expected to add £94 onto energy bills.

This could increase if the Government is unable to recover the cost of running the special administration of Bulb through its sale and decides that billpayers must pick up the costs, something the report says should be paid for through general taxation.

Ofgem’s incompetence over many years enabled inadequately resourced and inexperienced founders to start energy companies. It failed to supervise regulated companies, which in turn took high risk decisions including not hedging properly and using customers money to offer unsustainable prices that undercut well run energy companies. Ofgem failed to use its existing powers and didn’t bring action against energy suppliers even when it was clear that they should have done.  

Ministers and regulators believed deregulation would drive competition, but it instead left an over- exposed and unregulated market which ultimately crashed, costing taxpayers billions of pounds. This market failure is only comparable to the banking crisis of 2008, according to MPs.  

Ofgem is pressing ahead with a major package of regulatory reform to reverse its previous shortcomings and shore up the financial resilience of the market, but the Committee remains sceptical of Ofgem’s ability to undertake this task. If measures are poorly designed and executed, they risk further destabilising the market and distorting competition. 

Insulating homes to permanently reduce demand 

Helping customers pay their energy bills is not a sustainable position for Government and volatile gas prices are expected to be a longer-term concern for the country. It is therefore urgent and essential that Ministers bring forward a fully funded, national campaign to insulate people’s homes – street by street, community by community – in order to reduce the country’s demand for energy.  

This report urges the Government to stop announcing short-term policies and moving existing budgets around and instead fully fund a national retrofit programme that businesses, homeowners, and tenants can invest and take part in.  

Such a programme is required not just to reduce the cost of energy in winter but to also keep homes cool in extreme heat, reduce the cost of cooling as well as heating, and help the country hit its net zero targets as set out in the Committees previous report on Decarbonising heating in homes

Scotland’s Trade Minister highlights human rights concerns over trade deal with Israel

The UK Government’s intended approach to current free trade agreement negotiations with Israel raises concerns over human rights issues, according to Trade Minister Ivan McKee.

In a letter to Penny Mordaunt, Minister of State for Trade Policy, Mr McKee said the Scottish Government has specific concerns in relation to the human rights record and ongoing conflict in Israel and the Occupied Palestinian Territories.

The Minister also raised that the UK Government has not included a full impact assessment on a potential new deal and how it would impact the UK nations. Mr McKee’s response also states that it is clear no potential benefits from a new agreement would mitigate the negative effects of Brexit.

The letter reads:

Dear Penny

Launch of UK-Isreal Free Trade Agreement negotiations

Thank you for your letter of 20 July announcing the launch of free trade agreement (FTA) negotiations with Israel.

The Scottish Government welcomes opportunities for Scottish businesses and our economy to grow, in particular in trade in services, where the coverage of the existing trade agreement with Israel is limited. However, we must be sure that any new agreement is in the best interests of Scotland and consistent with the principles in Scotland’s Vision for Trade. I wrote to you recently setting out in detail Scotland’s interests in this FTA.

The scoping analysis that you have now published does not give any detail on the likely economic impact of this deal on Scotland. However, any benefits from increased trade will not make up for the loss in trade as a result of Brexit. Given that your own modelling shows the recent deals with Australia and New Zealand are likely to have a detrimental impact on the agriculture and semi-processed food sectors, it is important to see the impact of all proposed FTAs on Scotland and our economy in advance of negotiations.

I have called on the UK Government to ensure that current and future trading partners comply with their human rights and international law obligations. We have specific concerns in relation to the human rights record and ongoing conflict in Israel and the Occupied Palestinian Territories (OPTs). In particular, we are concerned about reported labour rights violations of Palestinian and migrant workers under Israeli working practices.

It is vital that you ensure that that goods and services sourced from illegal settlements in the OPTs are excluded from this agreement in a way that can be reliably enforced. It is also important that any expansion of trade in architectural and construction services within Israel does not lead to involvement in the punitive demolition and destruction of Palestinian public and private property in the OPTs, which is a violation of international law.

It is disappointing that you have not undertaken a human rights impact assessment in advance of negotiations, as we have consistently called for, but urge you to fully consider these important issues and use the trade negotiations to progress human rights objectives.

I would also welcome further information on what plans you may have to similarly develop the current trade agreement with the Palestinian Authority of the West Bank and the Gaza Strip.

As you know, I have repeatedly made the case for a full role for the Scottish Government and Scottish Parliament in the development of trade agreements. I welcome the engagement that has taken place so far but will continue to press for the Scottish Government to be fully involved in these negotiations to ensure they achieve the best outcome for Scotland and promote human rights.

Ivan Mckee