(Picture: PA Wire)
Millions of households and businesses across Britain should be encouraged to cut their energy use if possible as bills soar this winter, a minister said on Thursday.
Schools minister Will Quince said he did not believe firms and families would be advised that they must cut energy usage, amid warnings of possible blackouts.
But he stressed that a “responsible Government” would urge people to scale back on their use of gas and electricity where possible.
Some headteachers have warned that schools may have to operate only three days a week given the soaring cost of energy and other bills including staff wages as inflation spirals.
However, Mr Quince emphasised that schools should stay open for the whole week.
Asked on LBC Radio whether firms who use a lot of energy and households would be advised that they need to cut down on usage at some point this winter, Mr Quince said: “My understanding is that we don’t foresee challenges of that nature.
“But any ways in which we can encourage both individual households and businesses to reduce their energy use, while still ensuring that they can run and manage their household, I think is the thing a responsible Government will do.
“No doubt there will be lots of consumer experts and others up and down the country offering such advice too.”
Other ministers have so far shied away from offering advice to households and bosses on reducing energy use.
Regulator Ofgem will on Friday announce the level of the price cap for October, which is expected to rise from £1,971 to more than £3,500 and then possibly surge above £5,800 in April.
Ministers have denied that the UK is facing blackouts this winter.
Energy bills have soared largely due to Vladimir Putin’s war in Ukraine and the Kremlin cutting back on gas flows to Europe.
Business chiefs in London are urging Liz Truss, or Rishi Sunak, to act swiftly once Prime Minister in September to deliver a new package of support for struggling households and firms.
“With recession forecast by the Bank of England, the first priority for the new leader must be providing a solution to cost pressures, in particular energy prices, to ensure families are not making difficult decisions between heating their homes and putting food on the table, and that enables businesses to weather a difficult winter of rising costs,” said the Business Ldn group.
Former Labour MP Caroline Flint, who now chairs the Committee on Fuel Poverty which advises the Government, told BBC radio: “The fear is not so much that people will be disconnected by the energy companies, although that’s a worry for people, it’s that they will disconnect themselves.
“They just won’t turn on the heating, they will be living in homes even colder than they have had to deal with in the past.
“But also they may not be having cooked food because that they see as wasting their energy,” she added, suggesting there should be a lid on the price cap.
Energy giant EDF warned earlier this week that half of households could be plunged into fuel poverty, meaning they are spending more than ten per cent of their disposable income on gas and electricity.
British Gas announced that it will donate ten per cent of its profits during the energy crisis to help people struggling with rising bills.
The money will be provided through the British Gas Energy Support Fund which gives grants to those most in need.
Thousands of customers will receive an average £750 per household, according to the firm.
British Gas Energy’s pre-tax profits were £98 million in the first half of 2022, meaning its initial contribution would be £9.8 million.
The supplier said it will immediately boost this to £12 million over the winter period when energy usage is highest.
Chris O’Shea, chief executive of Centrica, the parent company of British Gas, said: “As a responsible business we want to do more to support our customers during this difficult time.”
However, business experts were quick to point out that Centrica reported adjusted operating profits of £1.3billion in the six months to June, a jump from £262 million a year earlier, driven by rising revenue from oil and gas drilling.
Energy bills have soared largely due to Vladimir Putin’s war in Ukraine and the Kremlin cutting back on gas flows to Europe.
Ministers have denied that the UK is facing blackouts this winter.
The British Chambers of Commerce is urging ministers to hand more power to Ofgem, cut VAT and introduce pandemic-style emergency grants to help firms facing rocketing costs.
More than four out of five large employers are taking or considering action to help employees cope with the cost-of-living crisis, according to a new PwC survey.
This includes pay rises, one-off bonuses, or help with travel, shopping of home insulation.
But many small businesses, including pubs and fish and chip shops, face a battle to survive the soaring costs of energy.
Andrew Crook, president of the National Federation of Fish Friers, said about two thirds of chippies had cut opening hours to save money.
He stressed: “Unfortunately this is potentially an extinction event for small businesses.
“It’s like nothing we’ve ever seen before.”
