“Problems in the energy supply market were apparent in 2018 – years before the unprecedented spike in prices that sparked the current crisis, and Ofgem was too slow to act.“
In a report published today Westminster’s Public Accounts Committee calls on the Department for Business, Energy and Industrial Strategy and Ofgem to say how they will make “the energy retail market work in the best interests of customers during the transition to net zero” after finding that failures at the energy regulator have come “at a considerable cost to billpayers”.
Since July 2021, 29 energy suppliers have failed, affecting around 4 million households. Customers have been left to pay the £2.7 billion cost of supplier failures. This means an extra £94 per household, a cost that will very likely increase.
The Committee found that this was due to “Ofgem’s failure to effectively regulate the energy supplier market”.
Ofgem “did not strike the right balance between promoting competition in the energy suppliers market and ensuring energy suppliers were financially resilient”.
Despite problems with the financial resilience of energy retailers emerging in 2018 Ofgem did not tighten requirements for new suppliers until 2019, and for existing suppliers until 2021. By this point wholesale gas and electricity prices increased to unprecedented levels.
The price cap “is providing only very limited protection to households from increases in the wholesale price of energy”, and Ofgem expects prices could “get significantly worse through 2023”. The Committee says BEIS and Ofgem should “review the costs and benefits of the price cap from a consumer’s perspective” to inform decisions about the future of energy price controls.
The position of vulnerable customers, who already pay higher energy prices, is “unacceptable”.
Dame Meg Hillier MP, Chair of the Public Accounts Committee, said: “ “It is true that global factors caused the unprecedented gas and electricity prices that have caused so many energy supplier failures over the last year, at such terrible cost to households. But the fact remains that we have regulators to set the framework to shore us up for the bad times.
“Problems in the energy supply market were apparent in 2018 – years before the unprecedented spike in prices that sparked the current crisis, and Ofgem was too slow to act.
“Households will pay dear, with the cost of bailouts added to record and rising bills. The PAC wants to see a plan, within six months, for how Government and Ofgem will put customers’ interests at the heart of a reformed energy market, driving the transition to Net Zero.”
The Joint Committee on Human Rights inquiry examines the Government’s policies and procedures relating to asylum seekers and the impact these have on their human rights.
This will include the UK’s approach the availability of “safe and legal” routes for asylum seekers, the treatment of those arriving outside of these routes, and attempts to relocate asylum seekers outside the UK. It will also examine the treatment of asylum seekers once in the UK, including treatment in short-term holding facilities, conditions in detention, accommodation, restrictions on movement, and the right to work.
The inquiry also assesses whether the UK’s current legal framework is adequate to meet its human rights obligations to those who are victims of modern slavery or human trafficking.
Chair of the Joint Committee on Human Rights, Joanna Cherry KC MP said: “The UK has a long-standing obligation to provide a place of sanctuary to those fleeing war and persecution.
“We have launched this inquiry to examine whether the current approach to asylum meets the UK’s human rights obligations. Are the current routes for asylum seekers to come to the UK adequate, and is it right for those excluded from “safe and legal routes” to be punished for coming to the UK even if they have fled conflict or persecution?
“Can the UK outsource its asylum obligations to third countries and still ensure the human rights of those seeking asylum are protected?
“We want to look beyond fearful headlines about the cost of hotel accommodation or the numbers of asylum seekers arriving, to consider the experience of those going through the asylum system and the way they are treated.
“Fundamentally, is the way asylum seekers are treated appropriate and lawful, or is the UK Government falling short of the human rights standards designed to protect them, and all of us?
“Given the terrible conditions we have witnessed at Manston and the new Home Secretary’s seeming delight at the prospect of further flights to Rwanda, this inquiry could not be more timely.”
Background
The Universal Declaration of Human Rights states in Article 14 that “everyone has the right to seek and enjoy in other countries asylum from persecution”.
The Refugee Convention built on this with the establishment of a regime of international refugee protection, which was ratified by the UK in 1954. The Convention defines a refugee as a person outside their country of nationality or habitual residence, due to well-founded fear of persecution because of their race, religion, nationality, membership in a particular social group or political opinion, and unable or unwilling to return to that country for fear of persecution.
In addition, the Human Rights Act 1998 incorporated the European Convention on Human Rights into UK law. Amongst other things, it prohibits torture and inhuman or degrading treatment (Article 3 ECHR), as well as slavery and forced labour (Article 4 ECHR). It also provides for a right to liberty and security (Article 5 ECHR) and a right to private and family life (Art 8 ECHR).
Asylum seekers often come from countries affected by violence, conflict, and human rights abuses, and a portion of those who leave come to the UK.
In 2022, the number of new asylum applications rose to 63,089, from 48,540 in the previous year. As of June 2022, there were 122,213 asylum claims pending an initial decision, out of which 89,231 cases had been pending an initial decision for more than 6 months. Most asylum claims in the UK are successful – in 2021, the estimated overall grant rate where a final outcome has been reached was 77%.
The Nationality and Borders Act 2022 made significant amendments to the legislative framework for the asylum system. Changes include the introduction of new powers to remove asylum seekers, the creation of a two-tier system for asylum claims, and the inadmissibility of claims by persons with a connection to safe third States.
The Government has also sought through the UK Rwanda Migration and Economic Development Partnership to send certain asylum seekers to Rwanda to make claims for asylum in Rwanda.
Terms of reference
The Joint Committee on Human Rights is looking into the rights of asylum seekers in the UK, with a view to identifying human rights concerns. To inform its work, the Committee invites submissions of no more than 1,500 words from interested groups and individuals. The deadline for submissions is 15 December 2022. We would welcome evidence covering the following questions:
1. Is it compatible with the UK’s human rights obligations to deny asylum to those who do not use what the Government calls “safe and legal routes”? 2. What “safe and legal routes” currently exist for asylum seekers in the UK? Should new routes be introduced?
Relocation of asylum seekers
3. Is the policy of relocating asylum seekers to third countries consistent with the UK’s human rights obligations?
Detention
4. Are the rules on detention and processing, and the treatment of detained asylum seekers, consistent with the UK’s human rights obligations?
Electronic tagging
5. Is the electronic tagging of asylum seekers a necessary and proportionate interference with their human rights?
Legal aid, accommodation, and subsistence
6. Is the support available to asylum seekers under the legal aid, accommodation, and subsistence rules compliant with the UK’s human rights obligations?
Right to work
7. How do the rules on right to work impact on the human rights of asylum seekers?
Modern slavery
8. Is the UK’s legal framework for tackling modern slavery and human trafficking effective, and is it compatible with our human rights obligations? Are there changes that should be made?
9. Is there any evidence that modern slavery laws are being abused by people “gaming” the system?
Nationality and Borders Act 2022
10. To what extent has the enactment of the Nationality and Borders Act 2022 had an impact on the human rights of asylum seekers?
We understand that the issues raised in this work may be sensitive or upsetting and the following organisations may be able to offer support or further information:
Asylum Aid – free legal aid advice and representation to asylum seekers and refugees in the UK. Call 020 7354 9631 Email advice@asylumaid.org.uk
British Red Cross – support to refugees and asylum seekers in the UK including emergency assistance to those who are destitute, and family reunion and resettlement services. Call 0808 196 3651
London Destitution Service – Refugee Council – support for asylum seekers or rejected asylum seekers who are destitute, and support to vulnerable and homeless asylum seekers who have lost contact with their asylum application and have no legal representation. Call 02073466700 Email destitution@refugeecouncil.org.uk
Migrant Help – free 24/7 helpline providing independent advice and support to asylum seekers in the UK in your own language. Call 0808 8010 503 Webchat; Online Enquiry Form
Samaritans – for everyone, 24 hours a day, every day. Call 116 123
The Secretary of State for Northern Ireland has issued the following statement after the deadline for the re-formation of the Northern Ireland Executive passed:
As of earlier today, an Executive can no longer form and I am duty-bound by law to call new elections to the Northern Ireland Assembly as set out in the New Decade, New Approach agreement as soon as practicably possible and within 12 weeks.
I believe strongly that people in Northern Ireland deserve locally-elected decision-makers who are working for them, to address the issues that matter most to people here.
Having spoken with the various Party leaders this week, I know no one in Northern Ireland is calling for an election – but nearly all Parties signed up to the Agreement that put us in this position only a couple of years ago.
Today I also met the Chief Electoral Officer to discuss operational considerations to inform my decision about the election date.
It was particularly disappointing to see yesterday that the Assembly was still unable to elect a Speaker, despite all the time that has passed.
At a time when so many are struggling with the cost of living and fearful of what is to come, I understand people’s frustration that MLAs continue to draw a full salary when they are not performing all the duties they were elected to do.So, I will be considering my options to act on MLA pay.
Right now, the Executive no longer has Ministers in post to act for the people of Northern Ireland.
That means no Ministers to deliver the public services you rely on. That means no Ministers to manage the budget pressures affecting the funding of your hospitals, your schools, your doctors and nurses.
So in the absence of an Executive I will take limited but necessary steps to protect public finances and the delivery of public services.
I have already met the Head of the Northern Ireland Civil Service, Jayne Brady, to discuss this and gather evidence on the state of Stormont’s financial position. I shall hopefully receive more detailed information about this next week.
Then I’ll soon outline our plan of action to make sure that the interests of the people of Northern Ireland are protected.
And to those who have called for “joint authority” of Northern Ireland in recent days, let me say this: this won’t be considered.
The UK Government is absolutely clear that the consent principle governs the constitutional position of Northern Ireland. We will not support any arrangements that are inconsistent with that principle.
Elderly, disabled and other vulnerable people will get better support to stay safe online and avoid being misled by disinformation thanks to a funding boost from the government to mark UNESCO Global Media and Information Literacy Week.
Funding awarded to improve media literacy among vulnerable and ‘hard-to-reach’ groups
Will support projects across the UK to ensure everyone can protect themselves from online disinformation
Part of the government’s Online Media Literacy Strategy to help people be safe online
Elderly, disabled and other vulnerable people will get better support to stay safe online and avoid being misled by disinformation thanks to a funding boost from the government to mark UNESCO Global Media and Information Literacy Week.
More than £1 million has been granted to 17 UK organisations to pilot new ways of boosting media literacy skills for people at risk of experiencing online abuse and being deceived into believing false information, such as vaccine disinformation, deepfake videos or propaganda created by hostile states.
Research shows some people struggle to engage and benefit from the range of media literacy education on offer, due to limited experience or overconfidence in using the internet, as well as a lack of awareness of how to access resources and their unavailability outside of schools and colleges.
The Media Literacy Taskforce Fund is one of two funding schemes created to target ‘hard-to-reach’ and vulnerable groups by investing in community-led projects to ensure everyone has the opportunity to improve their media literacy skills and protect themselves from online disinformation.
Social enterprise Freshrb will work with young people to develop their own podcasts exploring online dis- and misinformation to be aired on local radio. Another project run by charity Internet Matters will provide media literacy training for dozens of care workers and leavers in the Greater Manchester area.
Elderly people from diverse backgrounds in Leeds will have access to digital media skills training online and in community centres as part of the Leeds Older People’s Forum. Parent Zone is working with eight local councils including Calderdale, Luton and Middlesborough to deliver media literacy resources tailored to parents and carers of teenagers.
A separate scheme, the Media Literacy Programme Fund, will deliver training courses, online learning, tech solutions and mentoring schemes to vulnerable internet users.
Digital Secretary Michelle Donelan said: “With the rise of online disinformation, teaching people to identify fact from fiction has never been more important to public safety.
“As well as bringing forward new laws to tackle the root causes of these problems, we are funding organisations to give people the skills to stay safe online so everyone can benefit from all the internet has to offer.”
NewsGuard, which will work with ageing-focused charities to, deliver workshops to older adults to support them in spotting mis- and disinformation online;
The Economist Educational Foundation will work with disadvantaged schools and boost teachers’ skills through news literacy training and support students to engage with the news and think critically about what they’re consuming online;
Online Safety charity Glitch will deliver workshops and training to vulnerable and marginalised women to support their media literacy skills including tackling online abuse.
All the schemes are part of the government’s plans to deliver the Online Media Literacy Strategy, a national action plan to empower people to stay safe online by giving them the skills they need to think critically about what they see and read on the internet.
Launched in July 2021, the three-year strategy supports media literacy organisations to deliver education and initiatives in a more wide-reaching and effective way. The year two plan, published in April, is backed by more than £2 million in targeted funding, including today’s announcement.
This is in addition to the £250,000 grant funding delivered to five organisations working with schools to adapt media literacy resources for teachers working with disabled students in our year one action plan.
The announcement coincides with the UNESCO Global Media and Information Literacy Week, a global initiative celebrating the progress countries have made toward making media literacy education more accessible to its citizens by implementing national media and information literacy policies.
The grant funding complements the measures in the groundbreaking Online Safety Bill, which supports a safer online environment by requiring tech firms to protect children from harmful content and tackle criminal activity on their platforms.
A new report by Westminster’sinfluential Business, Energy and Industrial Strategy Committee has urged the Government to publish a draft Digital Markets Bill that would help deter predatory practices by big tech firms ‘without delay’.
Proposals for a Digital Markets Competition and Consumer Bill were trailed by the Government in the Queen’s Speech. It announced measures that would empower the Competition and Markets Authority’s (CMA) Digital Markets Unit (DMU) to rein in abusive tech giants by dropping the turnover threshold for immunity from financial penalties from £50 million to £20 million, and hiking potential maximum fines to 10% of global annual income.
The Committee concluded that fines have been viewed as ‘a small business cost’ by large companies, adding that there is ‘strong evidence of abuses of market dominance’ within digital markets. It warned that ‘consumers and others are at risk’ until a Bill is published and passed.
BEIS Committee Chair Darren Jones said: “The Competition, Consumer and Digital Markets Bill has wide support and should be prioritised, especially given the difficulty the Government currently has at passing other laws which are more controversial.
“There are many areas in the economy where stronger competition is required in the interests of consumers, small business and economic growth and this bill is an essential stepping stone to driving this issue forward.”
The report also called on the Government to ‘end [the] uncertainty’ caused by its failure to publish final guidance on the post-Brexit subsidy control regime, which the Committee found had left subsidy awarding bodies ‘in limbo’. The guidance needs to be published as soon as possible, MPs said.
Passed in April, and due to come into full force in early January, the Subsidy Control Act omits key details of the regime for public authorities to follow when awarding money. These gaps are due to be filled in by final guidance, which authorities will need if they are to have confidence when preparing bids for funding from the Shared Prosperity Fund. The Fund is a replacement for money formerly awarded through EU structural funding.
Mr Jones added: “The Government promised to replace previous EU funding into projects across the country as part of its Brexit and levelling up offers to the public. This has not yet been delivered and without full guidance and proper financing of the new subsidy schemes, funds that help deliver projects will be further delayed.
“The public will no doubt be disappointed to have not yet seen the so called ‘Brexit opportunities’ that were promised to level up their local community.”
Prime Minister Rishi Sunak’s statement on the steps of Downing Street
Good morning, I have just been to Buckingham Palace and accepted His Majesty The King’s invitation to form a government in his name.
It is only right to explain why I am standing here as your new Prime Minister.
Right now our country is facing a profound economic crisis.
The aftermath of Covid still lingers.
Putin’s war in Ukraine has destabilised energy markets and supply chains the world over.
I want to pay tribute to my predecessor Liz Truss, she was not wrong to want to improve growth in this country, it is a noble aim.
And I admired her restlessness to create change.
But some mistakes were made.
Not borne of ill will or bad intentions. Quite the opposite, in fact. But mistakes nonetheless.
And I have been elected as leader of my party, and your Prime Minister, in part, to fix them.
And that work begins immediately.
I will place economic stability and confidence at the heart of this government’s agenda.
This will mean difficult decisions to come.
But you saw me during Covid, doing everything I could, to protect people and businesses, with schemes like furlough.
There are always limits, more so now than ever, but I promise you this
I will bring that same compassion to the challenges we face today.
The government I lead will not leave the next generation, your children and grandchildren, with a debt to settle that we were too weak to pay ourselves.
I will unite our country, not with words, but with action.
I will work day in and day out to deliver for you.
This government will have integrity, professionalism and accountability at every level.
Trust is earned. And I will earn yours.
I will always be grateful to Boris Johnson for his incredible achievements as Prime Minister, and I treasure his warmth and generosity of spirit.
And I know he would agree that the mandate my party earned in 2019 is not the sole property of any one individual, it is a mandate that belongs to and unites all of us.
And the heart of that mandate is our manifesto.
I will deliver on its promise.
A stronger NHS.
Better schools.
Safer streets.
Control of our borders.
Protecting our environment.
Supporting our armed forces.
Levelling up and building an economy that embraces the opportunities of Brexit, where businesses invest, innovate, and create jobs.
I understand how difficult this moment is.
After the billions of pounds it cost us to combat Covid, after all the dislocation that caused in the midst of a terrible war that must be seen successfully to its conclusions I fully appreciate how hard things are.
And I understand too that I have work to do to restore trust after all that has happened.
All I can say is that I am not daunted. I know the high office I have accepted and I hope to live up to its demands.
But when the opportunity to serve comes along, you cannot question the moment, only your willingness.
So I stand here before you ready to lead our country into the future.
To put your needs above politics.
To reach out and build a government that represents the very best traditions of my party.
Together we can achieve incredible things.
We will create a future worthy of the sacrifices so many have made and fill tomorrow, and everyday thereafter with hope.
Liz Truss has given her final speech as Prime Minister on the steps of Downing Street:
It has been a huge honour to be Prime Minister of this great country.
In particular, to lead the nation in mourning the death of Her Late Majesty The Queen after 70 years of service,
and welcoming the accession of His Majesty King Charles III.
In just a short period, this government has acted urgently and decisively on the side of hardworking families and businesses.
We reversed the National Insurance increase.
We helped millions of households with their energy bills and helped thousands of businesses avoid bankruptcy.
We are taking back our energy independence…
…so we are never again beholden to global market fluctuations or malign foreign powers.
From my time as Prime Minister, I am more convinced than ever we need to be bold and confront the challenges that we face.
As the Roman philosopher Seneca wrote: “It is not because things are difficult that we do not dare. It is because we do not dare that they are difficult.”
We simply cannot afford to be a low growth country where the government takes up an increasing share of our national wealth…
and where there are huge divides between different parts of our country.
We need to take advantage of our Brexit freedoms to do things differently.
This means delivering more freedom for our own citizens and restoring power in democratic institutions.
It means lower taxes, so people keep more of the money they earn.
It means delivering growth that will lead to more job security, higher wages and greater opportunities for our children and grandchildren.
Democracies must be able to deliver for their own people…
We must be able to outcompete autocratic regimes, where power lies in the hands of a few.
And now more than ever we must support Ukraine in their brave fight against Putin’s aggression.
Ukraine must prevail.
And we must continue to strengthen our nation’s defences.
That is what I have been striving to achieve… and I wish Rishi Sunak every success, for the good of our country.
I want to thank Hugh, Frances, Liberty, my family and friends, and all the team at No10 for their love, friendship and support.
I also want to thank my protection team.
I look forward to spending more time in my constituency, and continuing to serve South West Norfolk from the backbenches.
FORMER Prime Minister Boris Johnson issued the following statement last night:
Johnson’s final acceptance that the anticipated support just isn’t there for him clears the way for a run-off between hot favourite Rishi Sunak and Penny Mordaunt – but only if the latter can attract enough votes among her fellow Tory MPs. That’s looking increasingly unlikely.
If she can’t reach the 100 vote target, we can look forward to the anointing of Rishi Sunak as our new Prime Minister, with the Tory party membership having no say.
Monday morning seems like an age ago, and the political circus is likely to continue into next week (writes Fraser of Allander Institute’s MAIRI SPOWAGE).
On Monday, the new chancellor undid pretty much every tax measure in the ex-Chancellor and soon-to-be ex-PM’s “mini”-budget. Only those already legislated for will proceed (the scrapping of the health and social care levy and the stamp duty cuts in England will still happen).
Although the PM has resigned, it still looks like the Fiscal Plan will be presented on 31st October, which is an interesting political situation given that presumably means that Jeremy Hunt will remain as Chancellor whoever wins the leadership election over the next week. But perhaps the last wee while has taught us that presuming anything is foolish!
For Scotland, the extra funding that was going to be generated by these tax measures for the Scottish Budget has now largely disappeared, with only the stamp duty reductions generating additional funding for Scotland.
This presents significant challenges for the Deputy First Minister in managing an already very stretched budget.
Economic Case for Independence published
Somewhat overshadowed by events at Westminster, the Scottish Government published the third in their series of papers to set out a new case for independence on Monday. This paper, “A stronger economy with independence” was expected to set out the economic case, covering issues such as currency, trade, and public sector finances.
We published analysis of the paper on Monday – and look out for our Guide to the Economics of Independence which we’ll be publishing soon and updating as more information is released by the Scottish Government.
Inflation goes back above 10%
The Office for National Statistics (ONS) published September inflation data, which showed that CPI inflation had gone back into double digits, running at 10.1%.
Underneath the headline rate, food and non-alcoholic beverages inflation is now estimated to be 13.1%. There was a slight downward pressure from motor fuels, as the prices at the pumps fall back from the peaks they reached in July.
These data still do not capture the energy price rises households are now experiencing as of 1st October, so expect there to be further increases in the rate when that data is published next month.
Interestingly (well, if you are interested in economic statistics, come on!) it may be that the change in the way the government is supporting households on energy may change the outlook for inflation. If, as is expected, the help after April is more targeted as cash transfers to those households most in need, then this will not put downward pressure on the actual price of energy.
We’ll be looking out for the OBR and Bank of England’s (3rd November) view on the pathway for inflation given these changes.
New Public Sector Finance Data published this morning (Friday)
ONS have also put out the latest public sector finances release, which contains public finance statistics (including deficit and debt) up to September 2022.
These have the first statistics on revenue generated by the Energy Profits Levy, which shows that £2.7 billion was generated from this tax in the year to date. It will be interesting to get the OBR’s independent view of the likely take from this tax over the next few years – and obviously to see if the Chancellor chooses to extend this in some way in the Fiscal Statement.
More broadly, it contains up-to-date statistics on the size of the UK National Debt. Debt has reached £2.5 trillion, which is equivalent to 98% of GDP – levels not seen since the 1960s.
This reminds us of the challenging fiscal environment, which sets the backdrop for the statement by the Chancellor in 10 days time.
No confirmation on the Scottish Government’s Emergency Budget Review
As we write this, we have no confirmation whether the Scottish Government’s Emergency Budget Review (EBR) will go ahead next week, as previously indicated.
Remember, this review is to look at in-year (2022-23) spending to balance the budget in the face of higher than expected (at the time of the last budget) inflationary pressures, particularly in relation to the public sector pay bill.
We wrote yesterday about employability support, one of the areas that John Swinney has already indicated will be cut. A number of questions remain to be answered. and we hope the EBR will be clear in laying out the evidence considered when deciding where the axe will fall.
The response to whatever is set out by the UK Chancellor on the 31st October will come in the Scottish Government’s draft budget for 2023-24 on the 15th December. For fiscal fans, the fun is due to continue for some months yet!
PRIME Minister Liz Truss has resigned after just six weeks in post.
Truss, who yesterday declared she was ‘a fighter, not a quitter’, has, well, quit after just 45 days in the job.
Her resignation statement was equally short:
I came into office at a time of great economic and international instability.
Families and businesses were worried about how to pay their bills.
Putin’s illegal war in Ukraine threatens the security of our whole continent.
And our country had been held back for too long by low economic growth.
I was elected by the Conservative Party with a mandate to change this.
We delivered on energy bills and on cutting national insurance.
And we set out a vision for a low tax, high growth economy – that would take advantage of the freedoms of Brexit.
I recognise though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party.
I have therefore spoken to His Majesty The King to notify him that I am resigning as Leader of the Conservative Party.
This morning I met the Chair of the 1922 Committee Sir Graham Brady.
We have agreed there will be a leadership election to be completed in the next week.
This will ensure we remain on a path to deliver our fiscal plans and maintain our country’s economic stability and national security.
I will remain as Prime Minister until a successor has been chosen.
Thank you.
Scotland’s First Minister Nicola Sturgeon tweeted:”There are no words to describe this utter shambles adequately. It’s beyond hyperbole – & parody. Reality tho(ugh) is that ordinary people are paying the price.
“The interests of the Tory party should concern no-one right now. A General Election is now a democratic imperative.”
Labour leader Sir Keir Starmer said: “After 12 years of Tory failure, the British people deserve so much better than this revolving door of chaos. We need a general election, now.”
His full statement:
Truss will remain as PM until her successor is elected – not by the people of Great Britain, but by Tory MPs.
