Cost of living crisis: Sheffield MPs say government’s energy plan will prolong suffering

The average household’s yearly energy bill is set to increase by £693 in April amid a cost of living crisis with prices soaring and taxes and interest rates going up.

Chancellor Rishi Sunak announced the government will offer a £200 ‘discount’ on all electricity bills, which will later be repaid and a £150 council tax rebate for households in property bands A to D to offset some of the extra costs.

Paul Blomfield, MP for Sheffield Central, pressed the chancellor on the issue in a debate in the House of Commons earlier this week, highlighting that many people were now skipping meals to pay rocketing energy bills.

He said: “As the gas and oil companies announce record profits, the chancellor could have done far more to help those who’ll pay the price. Families will still be paying hundreds of pounds more per year from April despite the chancellor’s intervention today.

“The discount is a ‘buy now, pay later’ scheme which simply defers the pain. Families will have to repay the discount in the future when they could be facing higher bills, with the possibility of increasing energy prices later this year.

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“The council tax discount leaves people having to find almost 80 per cent of the extra costs at a time when so many other prices are rising faster than wages. Those renting in larger houses in multiple occupation will miss out on this support too.

"It’s a really worrying situation for local people concerned about spiralling living costs. On Tuesday I told the chancellor how to fix the problem, by extending the Warm Homes Discount.

“With no extra taxes on the profits of oil and gas producers, despite giants like Shell announcing unprecedented profits of £12 billion, it’s clear the chancellor wants to protect his friends more than the one in five people who are already skipping meals to pay for their increased energy bills.”

Louise Haigh, MP for Sheffield Heeley, also raised concerns.

She said: “What the government has announced amounts to a buy now pay later scheme that will barely register for people who are struggling to pay their bills.

“Instead of supporting people and businesses with the impending energy crisis, this government have decided to extend it for years to come and stand on the side of oil and gas companies who have been raking in record profits.

“Labour has a plan that would keep bills low with a one-off tax on oil and gas profits. This would save all households £200 off their bills now, with further targeted support of up to £400 for the lowest earners, pensioners and the squeezed middle. And we have a plan to regulate the market, so we fix these issues in the long term.

“This announcement is not good enough and will not bring any comfort to those who are making unimaginable choices between feeding themselves or heating their home.”