Energy Price Cap Rise

People are already struggling with the cost-of-living crisis and incomes not keeping pace with record levels of inflation. This massive hike in the amount energy companies will be able to charge their customers will add to the pressure they’re facing and increase the number of people who will be deciding between heating or eating.

National Energy Action (NEA) estimate that this energy price rise will push the number of UK households in fuel poverty from 6.5 million to 8.9 million. That’s approximately 1 in 3 homes. This estimate is based on the number of households spending 10% or more of residual income on energy costs. In Oldham East and Saddleworth, the NEA’s latest estimate is that more than 12,200 households (27.6%) are already fuel poor, above the national levels, which will rise even further with this price rise.

For people on the lowest incomes, it’s even worse – a single person on Universal Credit will be using 53% of their income to pay for their energy bills and a household with 2 children will see 27% of their income wiped out. I really fear for their wellbeing this winter.

The Labour Party have been pushing for the Government to freeze the price cap at £1971 a year which would save households about £1000 a year, or £1300 for those on pre-payment meters as well as providing an additional £325 to people on Universal Credit and the state pension and a further £150 to disabled people. But Government ministers have been missing in action. My constituents – and the country as a whole – needs and deserves better than this.

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