The SNP has warned of a ‘double-whammy’ hit to households in the coming months after changes to interest rates and the energy price cap were announced yesterday.
The political party have hit out at the timing of the announcement as they feel that people are getting hit twice as hard and will cause people to be more fearful of the household economy.
Ofgem confirmed that the energy price cap, which limits how much energy companies can charge households, will now be updated quarterly, as opposed to the current rate of twice a year, to keep up with the rising costs.
The energy price cap rose by 54 per cent in April to £1,971, with further rises in October set to hike bills to just under £3,500 a year.
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Furthermore, the Bank of England has announced that they are raising interest rates to 1.75 per cent, a jump from 1.25 per cent.
This is the biggest jump in interest rates in 27 years, something that MSP Natalie Don has highlighted as a concern for people with mortgages: “This is extremely worrying news for anyone with a mortgage – especially those without a fixed rate deal. With Interest Rates going up to 1.75%, those on a typical tracker mortgage will have to pay about £52 more a month. Those on standard variable rate mortgages will see a £59 increase.
“This interest rate rise will also impact on those who have loans including credit cards, bank loans and car loans.
“It’s clear the UK Tory Government have lost all control of the economy, allowing energy companies to make massive profits while people are struggling with vastly increased food and fuel costs. This interest rate rise will add more misery to everyone who is struggling due to the Tory created cost of living crisis.”
The SNP’s Depute Westminster Leader, Kirsten Oswald MP, has backed Natalie Don’s calls by saying the announcements spelled disaster for households already left reeling from sky-high energy bills and the Tory cost of living crisis, and called for urgent action to address households economic fears.
In a statement, Kirsten Oswald has said itnis “scandalous” that people find themselves in this situation in the 21st century: “With every day that passes without action from the UK government, more households are forced into making the tough decision over whether to heat their homes or put food on the table. That is scandalous in the 21st century.
“It begs the question what exactly will finally shame the Tories into action? So far it seems absolutely nothing, showing once again why Scotland desperately needs to escape Tory rule with the full powers of independence.”
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