READING’S Liberal Democrats are backing the national party’s call to cancel the planned increase in the energy price cap.
On Friday, August 26, government regulator Ofgem will announce the new rate which will come into effect in October. It is estimated to be more than £3,500, an increase from the current rate of £1,971.
The party’s national leader, Ed Davey, has called on the government to cancel the planned rise in a bid to protect households from the brunt of the increases: bills were closer to £1,200 a year before the current increase.
This Energy Bill Furlough, as they call it, could save a typical Reading household £1,924.99 a year.
Across the town, according to Liberal Democrat calculations, a total of £124 million would be saved if the price cap increase is ‘furloughed’.
Councillor Meri O’Connell, Reading Liberal Democrat leader and representative for Tilehurst, said: “Hard-working households in Reading are already struggling to make ends meet and residents are deeply concerned about how they will cope with the predicted rise in energy bills.
“This Conservative Government, with its absence of any form of leadership, is sitting back in the face of a national emergency and, yet again, is not doing enough to put money back in the pockets of ordinary people.
“Countless individuals, families and pensioners across Reading are genuinely frightened about how they are going to pay their bills – we cannot wait for a new Conservative leader to act.”
The party’s proposals would take pressure of households, she said.
“This is an emergency, and this shambolic Government must step in now by cancelling the planned rise in energy bills this October,” she added.
Cllr O’Connell and the Liberal Democrats have suggested that the Government should pay the shortfall of cancelling the price cap increase to energy suppliers so they can afford to supply customers at the current rates.
Additionally, they propose doubling the Warm Homes Discount from £140 to £300 and extending it to everyone on Universal Credit and Pension Credit, while investing in insulating fuel-poor homes to bring prices down in the long term.
Currently, the Warm Homes Discount is granted to those with ‘Guaranteed Credit’ of Pension Credit, and if you’re on a low income and meet your energy suppliers criteria for the scheme.
Ofgem does provide assistance for those struggling with energy bills, which involves directing people to schemes, grants and benefits, and adapting payment plans.
