Oldham’ Liberal Democrat Leader councillor Howard Sykes MBE has demanded the Government cancel plans to hike the average household energy bill by £500 in April. Sykes, who represents Shaw and leads Oldham Council’s Opposition Group, says it’s time to tax the “billion-pound profits of energy companies to pay for real support for families.”
The Liberal Democrats calling for cuts to people’s bills combined with a new energy support package for businesses, leisure centres, schools and hospitals across Oldham.
Councillor Sykes said, “In April the Conservatives are planning to hike the energy price guarantee by £500. The Liberal Democrats plan would mean that in Oldham, the average household would be £439 better off. We would save families more than £28 million across the Borough.”
“If the government doesn’t change course, their new price hikes will be a hammer blow to families and businesses already struggling. Action is needed now to save people from a cost-of-living cliff-edge.”
Nationally, the Liberal Democrats have set out their plan to tackle the energy crisis including:
1. A windfall tax on oil and gas companies to raise billions of pounds
2. A cancellation of the Governments £500 energy bill rise in April
3. A one-off bonus tax on oil and gas executives
4. Doubling the Warm Homes Discount to £300.
5. A U-turn on plans to slash energy bill support for businesses, leisure centres, schools and hospitals by 85%, and instead extend current levels of support for another six months.
NOTES
Household Plans:
Under the Government’s plans, the Energy Price Guarantee (EPG) will rise from £2,500 to £3,000 in April. This means that in the three months from April, the average household bill will rise by the equivalent of £500 a year.
From July 2023, Ofgem’s energy price cap is expected to fall below the level of the Energy Price Guarantee, to around £2,200, meaning that the EPG will no longer offer protection from high energy prices.
We estimate that under the Government’s plans, the average household bill over the 12 months from April will be £2,369.
Under Liberal Democrat plans, the Energy Price Guarantee would be set at £1,971 for the 12 months from April. That is the same level as the April 2022 Ofgem energy price cap. Amending the EPG from its current £2,500 to £1,971 would cut the average energy bill by the equivalent of £529 a year over the three months from April.
Under Liberal Democrat plans, the average household bill over the 12 months from April would be £1,971. This is £398 lower than under the Government’s plan (see table 1).
The Liberal Democrats are also calling for an additional package of measures targeted at vulnerable households to help them save hundreds of pounds off their energy bills. This would include doubling the Warm Homes Discount and the Winter Fuel Allowance, as well as kickstarting a new home insulation scheme starting with fuel poor households.
Costings:
The Liberal Democrat plan would mostly be funded through money already budgeted for energy support, but now unspent due to falling energy prices. Additional funds would be raised by a proper windfall tax on the record profits of oil and gas companies, including scrapping the fossil fuel investment loophole and raising the rate of the windfall tax from 35% to 40%. This could raise at least £15 billion more than the government’s current Energy Profits Levy.