Liz Truss arriving in Downing Street [Photo: Lauren Hurley]
AS the new prime minister announced a cap on energy bills yesterday (Thursday), the leader of Islington Council warned the situation is still “terrifying” for many of the borough’s most vulnerable residents, writes Anna Lamche.
In a debate in the House of Commons, Liz Truss unveiled her “energy price guarantee” to cap energy bills at £2,500 a year for the next two years.The new PM also plans to retain the £400 energy bill discount and scrap green levies, meaning average household bills will reach roughly £2,000 a year, up from the current rate of £1,791.
Ms Truss has said she also plans to boost the country’s energy resilience, investing in nuclear, wind and solar energy and lifting the moratorium on fracking – a move widely condemned by environmental campaigners.
But council leader Kaya Comer-Schwartz said the plans unveiled by Ms Truss do not go far enough.
“It’s something: we have to start there, and I’m glad to see the inclusion of businesses,” Cllr Comer-Schwartz said.
“But it’s not enough: an average of £2,500 is still astronomical and a lot more than people were paying last year.”
In a letter sent to the prime minister this week, Cllr Comer-Schwartz called for Universal Credit to rise in line with inflation, of which Ms Truss made no mention.
“Our ask around Universal Credit rising with inflation is crucial – it’s not enough to look at energy prices alone,” she said. “Inflation impacts every aspect of life like food costs and other household bills. We have to look at that.”
Islington has the highest level of child poverty in London, and the fourth-highest for older people, she said. In this context, any price rises signal “a really stressful, distressing and unwell winter ahead for a lot of these people,” she added.
Cllr Comer-Schwartz said of Ms Truss: “She’s very welcome to come to Islington, go to our food banks, speak to people making the worst type of choices and think whether she’s gone far enough.”
There are also concerns about the way Ms Truss plans to fund this support package, which will cost an estimated £150billion. Ms Truss has ruled out using a windfall tax on the profits of energy giants to fund the new measures, choosing instead to add the sum to the taxpayers’ bill instead.
Islington North MP Jeremy Corbyn told the Tribune: “As a country, we are going to end up pouring money into highly profitable energy companies. To maintain their current levels of profitability is an absurd situation.
“It’s like a protection racket of the energy companies against the public. My view is this is the obvious opportunity to take the energy companies into public ownership and control the prices.”
Anyone struggling with their bills is encouraged to call 020 7527 8222, or email heretohelp@islington.
gov.uk
