Government must cancel October energy price rise to save families in York

York’s Liberal Democrats have called on the Government to spare people from soaring energy bills by cancelling the price cap increase announced today, accusing the Conservatives of “stalling in the face of a national emergency”.

The calls come as new research by the University of York suggests that 70.6% of households may be plunged into fuel poverty in Yorkshire and the Humber by the New Year.

The plan to cancel the price cap rise announced by Ofgem today would save a typical household in York over £1,933 a year. Under these plans the hike would be cancelled, with the Government instead paying the shortfall to energy suppliers so that they supply customers at the current rates.

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.

Following a declaration of a cost of living emergency in June, councillors are 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.

Councillor Nigel Ayre, Lib Dem Executive Member for Finance and Major Projects, commented:

“Households across York are already struggling to make ends meet, and many are deeply concerned about how they will cope with this enormous rise in energy bills.

“This Conservative Government is stalling in the face of a national emergency and is simply not doing enough. Time and time again this Government has been dragged into U-turns following public pressure. They must realise the extent of the crisis and cannot wait any longer.

“This is an emergency, and the Government must step in to help families by cancelling the rise in energy bills.”