Wednesday 31 May 2023

Newspaper column 31 May 2023 - Support with energy

 

 

As we now head into Summer and the warmer months, most of us will be using less gas and electricity. I am aware that for households in the constituency the soaring energy costs we have seen not only here, but around the world following Putin’s illegal invasion of Ukraine, have been a serious concern.

 
I, and the government have worked to ensure households receive the help they need and that no one has been left struggling with their energy costs. Last year the government introduced a package of support measures, worth billions of pounds,s to ensure households didn’t suffer through the winter months.

One of those measures included the Energy Price Guarantee (EPG), which has meant that people have been protected from Ofgem’s energy price cap because of the government scheme. This has kept bills for a typical household to around £2,500, saving people £900 over the winter months.

Last week regulator Ofgem announced that from July 1 the energy price cap will fall to £2,074 per year for average households. The new cap figure compares to the £3,280 level set by Ofgem for March to June, meaning a £1,206 reduction in the cap from July and a reduction in average bills by £426 a year.

I am pleased to see that for the first time since the global gas crisis took hold that prices are falling for customers on default tariffs. Government support has already cut the typical family energy bill by over £1,300 since October, stopping the average household energy bill hitting £4,279 at its peak, which would have been impossible for most people to pay.    

The government continues to recognise the pressure many people are under to pay their bills and so earlier this year extended the EPG by another three months until June. This has helped to bridge consumers into the summer and saved a typical household a further £160.

We understand that while the price cap has dropped from its winter peak, the most vulnerable people will still find their bills difficult to pay and I am pleased but not surprised to see the government continuing to support those who need it.   

The Government is providing cost of living payments of varying size to different recipients. From last month, those eligible households on means tested benefits will receive payments totalling £900; people on non-means-tested disability benefits will receive a £150 payment and pensioner households will receive a £300 payment later this year.

The Government has already delivered an unprecedented package of measures which has helped
more than eight million families deal with the global consequences of Putin’s illegal war and the aftermath of the pandemic.

This includes £400 off energy bills for all households; £650 for households receiving means-tested benefits; £300 for pensioner households and £150 for people receiving disability payments. The government has also given a £150 council tax rebate for households in council tax band A to D and extended the 5p cut to fuel duty into 2023/24.

The support provided through the government’s Energy Price Guarantee and £400 Energy Bills Support Scheme (EBSS), which I know was a lifeline for many last winter, have covered around half of a typical household’s energy bills.

The EBSS saw every household with a domestic electricity connection given a £400 discount on their energy bills, amounting to £66 or £67 per month. This was also later opened up to those households without a direct relationship to an electricity supplier, such as those living in park homes and care homes after concerns were raised to me by constituents that they would miss out on the £400.

I called on ministers to set up a system by which they could apply and then ensure this support could be sent out as quickly as possible. I am pleased that the Energy Bills Support Scheme Alternative Funding (EBSS AF) has now been received by the majority of eligible households.  

Similarly with the government’s Alternative Fuel Payment scheme, I had numerous residents contact me regarding concerns about the period of time that applicants could evidence purchase of alternative fuels.

Many had bought fuel ahead of winter price rises and so were unable to provide a receipt from September 2022 which was part of the eligibility criteria. Once again the government listened to concerns and agreed to extend this to June 2022, so no households were penalised.

The government has also provided Cornwall Council with more than £9 million of additional support to help families that needed support as part of the Household Support Fund to help vulnerable families struggling to cover essential costs.

 

This funding took the total level of support provided to Cornwall Council for this fund to nearly £23 million which is locally targeted and spent to enable it to reach those who need it the most.

I want to make it very clear that I and the government will always support and stand by households who have been hit hard by the impact of Putin’s illegal war on Ukraine. I do not believe that any other government would have provided as much support as we have to help households through the energy crisis and want to reassure people in St Austell and Newquay that we will continue to review the situation as we have been doing and act if necessary.

As ever, if I can be of assistance on this matter, or another, please get in touch with my office by calling 01726 829379 or email office@stevedouble.org.uk