Lincolnshire MPs defend government over energy bills support

Yearly energy bills are expected to soar to over £4,000 next year, as many people worry about how they will heat their homes this winter — but two Lincolnshire MPs said they are pleased with the support being offered by the government so far.

Energy bills for a typical household could hit £4,266 next year, experts warned. The higher estimate means the average household would be paying £550 a month, instead of £164 a month currently.

Cornwall Insight criticised regulator Ofgem’s decision to change the price cap every three months instead of six, as higher wholesale prices are also forecast. However, Ofgem said no forecast for next year could be “robust” at this stage and had “limited value”, according to the BBC.

In May, a £400 energy bill support was announced which was calculated on the basis of Ofgem’s prediciton at the time that the price cap was likely to rise to £2,800, but experts now believe this will be higher. Cornwall Insight expects this to rise to £3,582 a year, compared to the regulator’s prediction of £2,800 a year.

More than half of households (55%) say the £400 government energy bill support is not enough to get through this winter, with the price cap now predicted to hit £3,500 in October, according to research by Uswitch.com.

The Lincolnite asked all 11 Greater Lincolnshire MPs what advice they would give to the thousands of families in their constituencies who can’t afford to put their heating on this winter, and what action they plan to take.

Lincoln MP Karl McCartney was one of the two to reply with a statement, saying: “This is an incredibly important issue, the government has already taken unprecedented steps to provide households with support and this will be one of the first priorities of the incoming Prime Minister.

“Ofgem has confirmed it will change the frequency at which the price cap is set to every three months rather than every six. This change has been made to provide the stability needed in the energy market, reducing the risk of further large-scale supplier failures which cause huge disruption and push up costs for consumers.

“The rising global prices for fossil fuels, especially gas, are increasing at an unprecedented rate. The UK is vulnerable to global price volatility as it is a net importer of natural gas and ultimately, this feeds into all customer energy bills in the UK.

“Electricity prices are heavily impacted by rising gas prices because gas is one of the fuels used to generate electricity. This is why I welcome the government’s Energy Security Strategy, which could see 95% of all UK electricity generation be low carbon by 2030, which will reduce reliance on gas, but also help meet the statutory decarbonisation target of net zero by 2050.

“The government has put forward an ambitious support package to help both lower and middle-income earners with the immediate adjustment. This includes a £400 grant for energy bills for all, which the Chancellor has not only recently doubled, but he has also cancelled the clawback mechanism meaning this will not have to be repaid.

“Further, a non-repayable £150 cash rebate is being provided for homes in Council Tax bands A-D, equivalent to 80% of all households and £144 million of discretionary funding for local authorities to support those not eligible for the council tax rebate.

“This means that hard working families will receive £550 with lower income families receiving even more help. Recipients of means-tested benefits such as Universal Credit and Pension Credit will be eligible to receive a £650 cost of living payment.

“Those in receipt of disability benefits will receive £150 cost of living payments. I believe these will be paid from September.

“Additionally, both candidates in the Conservative leadership election have pledged to take further steps in September to help support households.”

Gareth Davies, MP for Grantham and Stamford, said: “I know this is an incredibly difficult time for many families across the county. Inflation is the enemy that makes everyone poorer and that’s why I am pleased the government is providing significant support to help households with the cost of living at this time.

“All households will automatically receive £400 over six months, starting from October. Low and middle-income households have also benefited from an increase in National Insurance Contribution thresholds, with the first £12,570 a person earns now completely tax free – this is worth an extra £330 a year to the typical worker.

“The minimum wage has also risen to £9.50 an hour. A further £650 payment is available to those in receipt of benefits, while pensioners who normally receive Winter Fuel Payments will receive up to an additional £300 this year.

“This is significant support, targeted to those with the greatest need, but the government will continue to review and respond to the situation as it develops. In doing so, it is important that support continues to be carefully considered and well targeted. Otherwise, inflation could become embedded and cause high prices to persist.”

A third Lincolnshire politician, Cleethorpes MP Martin Vickers, also issued a statement to The Lincolnite.

He said: “The Government has made clear that they recognise further help will be required.

“The Chancellor is meeting the energy companies tomorrow (Thursday).

“I’m afraid there is no way any government can protect its citizens against every outside event and when downturns in the world economy occur everyone takes a hit.

“What the Government must do is ensure that help is targeted towards those most in need.

“I have discussed these issues with both contenders for the party leadership and made clear that many of my constituents will need extra support. I have to say that Rishi Sunak has responded the most positively.”

Former Chancellor Rishi Sunak or Foreign Secretary Liz Truss will be named as Conservative Party leader on September 5 — ten days after the new level of the energy price cap is announced on August 26.