Just last Friday I was saying that while we were saying some good things about the cost of living emergency, we needed to come up with something bolder to deal with such a massive economic shock.
I should have been more patient. Ed Davey has stepped up to the mark, calling for October’s energy price rise to be cancelled, with part of the cost covered by a windfall tax on the energy companies. Given that some of them are making quarterly profits larger than the GDP of some countries, that is entirely justifiable.
Under our plans, the 70% increase in the energy price cap expected to be announced by Ofgem later this month would be cancelled, with the Government instead paying the shortfall to energy suppliers so that they can afford to supply customers at the current rates. The party estimates that this would save a typical household an extra £1,400 a year.
This is not cheap, but the party says that the estimated £36 billion cost should be met by expanding the windfall tax on oil and gas company profits, and using the Government’s higher-than-expected VAT revenues as a result of soaring inflation.
The party is also calling for more targeted support for vulnerable and low income households. This would include doubling the Warm Homes Discount to £300 and extending it to all those on Universal Credit and Pension Credit, while investing in insulating fuel poor homes to bring prices down in the long term as well as reinstating on permanent basis the £20 per week Universal Credit uplift introduced during the pandemic.
Ed said:
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