Energy cap rise: Bradford Tory MPs welcome £350 boost for households

This morning, Chancellor Rishi Sunak announced three ways the Government will support households when the price cap shoots up by 54 per cent in April.

All domestic electric customers will receive an “up-front discount of £200” to their energy bills – delivered through loans to energy companies – which will be repaid through people’s bills over the next five years.

He also announced a £150 Council Tax rebate, fully funded by the Exchequer, for people living in Band A to D homes, which he said will help 80 per cent of homes across Britain.

Discretionary funding for local authorities will also to be used to support those exempt from paying Council Tax and living in homes in higher Council Tax bands.

The energy price cap has been put up £693, a 54 per cent rise

Keighley MP Robbie Moore and Shipley’s Philip Davies both welcomed the move, but Mr Davies called for further steps to be taken to address energy prices.

Mr Moore said: “We cannot ignore the fact many families across the country will face rising energy bills this year.

“Following the energy regulator Ofgem’s announcement that the energy cap will rise in April, I welcome that the Government is stepping in directly to help people manage the increase in costs.

“It is vital any support provides quick relief to those on middle and low incomes. Today’s plans, including rebates on energy bills and discretionary funds made available to local authorities, will smooth the impact of higher energy bills.

“It is a proportionate, fair, and targeted approach done in a responsible way. They will not just protect people in the coming months, but further in the future as well.”

Mr Davies added: “This issue will impact lots of families - not just those on the lowest incomes - and the Chancellor has recognised that with the measures he has announced.”

He also expressed frustration that VAT on energy bills had not been scrapped – a policy being pushed by Labour but resisted so far by the Government.

“I would have preferred abolishing VAT on domestic energy - which we can now do only as a result of Brexit,” Mr Davies added, “but I am nevertheless pleased the Chancellor has recognised many people are struggling with the surging cost of energy and is doing something to help them.”

He also said he wants the “bigger picture” to be addressed, taking aim at green policies as a cause for rising prices.

"However, the bigger picture is that the mad futile rush to net zero is pushing up energy prices unnecessarily and I expect to see a public backlash to that sooner rather than later.

“We need to start sourcing the cheapest energy for households and not just the greenest energy,” he added.

Rishi Sunak said global issues have caused energy prices to soar

However, during his speech to the Commons, the Chancellor pointed out energy prices have gone up as the cost of gas, coal and oil has risen sharply, quadrupling in the case of gas, and the rises are a global issue.

Mr Sunak said: “Across Europe and Asia, a long, cold winter last year depleted gas stores.

“Disruption to other energy sources, such as nuclear and wind, left us relying more than usual on gas during the summer months.

“Surging demand in the world’s manufacturing centres in Asia, at the same time countries such as China are moving away from coal, is further increasing demand for gas, and concerns about a possible Russian incursion into Ukraine are putting further pressure on wholesale gas markets. So prices are rising.”

Addressing calls to cut VAT, Mr Sunak said this would “disproportionately benefit wealthier households” and there is “no guarantee” the discounts would be passed onto customers, while also costing the Government £2.5bn a year.