North East politicians have reacted with horror to the huge energy price cap rise that will send average yearly bills spiralling to more than £3,500 from October.
Ministers have been warned that the UK is “headed for a disaster this winter” after regulator Ofgem confirmed that millions of people will be hit with a devastating rise in energy costs, with an 80% hike taking typical annual bills from £1,971 to £3,549. Friday morning’s news sparked widespread calls for Tory leadership candidates Liz Truss or Rishi Sunak to take urgent action when they take over as Prime Minister to prevent struggling families going cold and hungry.
Newcastle North MP Catherine McKinnell called on the next occupant of 10 Downing Street must “go big and bold” to prevent households being crippled by unaffordable bills.
Read More: Energy bills to soar for millions as Ofgem confirms price cap will rise to £3,549
The Labour MP, whose party has proposed freezing the price cap this winter, said: “Today’s announcement shows we are headed for a disaster this winter unless the Government steps in. Even before this increase my constituency inbox was filled with messages from people struggling to pay their energy bills. The average annual bill is now expected to rise by another £1,500 from October, and most households just don’t have that kind of money to spare.
“Without further support there will be widespread financial and physical hardship, households will be left owing unmanageable debts to energy companies, and many could have their supply cut off. So, the new Prime Minister needs to go big and bold to get support to households as soon as possible. Unfortunately, we’ve seen no serious proposals from either of the Conservative leadership candidates, or any sign that they have grasped the scale of the crisis.”
North of Tyne mayor Jamie Driscoll issued a call on Friday for energy firms to be nationalised in response to the price surge. He said: “This is an emergency.
"We saw in Covid that we can act when we need to. Exceptional times warrant exceptional measures. Not only will we see families fall into unpayable arrears, we’ll see businesses fold and people out of work, we’ll see our public services paying their budgets to energy firms, and social enterprises will close their doors just when vulnerable people most need them.”
Kim McGuinness, the Northumbria Police and Crime Commissioner, said she feared that the energy bill crisis will push more and more families below the poverty line – in a region where nearly 40% of children are already living in poverty. She added: “This is an emergency we knew was coming and yet Government have failed to act. People can’t wait any longer for a solution to this crisis, they are terrified at the prospect of choosing between food and warmth this winter.
“And the impact stretches much wider than households too, this also affects the crucial public services that support them, like our police. There’s no point at all in a price cap if that cap can simply rise at an uncontrollable rate all while local budgets are slashed - it all has consequences that the Government are simply ignoring. The whole situation is unacceptable and a plan to freeze the cap needs putting into action now.”
The new cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again. The hike has been blamed on rising wholesale prices, that have surged post-lockdown and because of Russia’s invasion of Ukraine.
Ofgem’s chief executive Jonathan Brearley has also urged the incoming Prime Minister “to provide an additional and urgent response to continued surging energy prices”. Ms Truss, who is the frontrunner to succeed Boris Johnson, promised she would “ensure people get the support needed” – though both she and Mr Sunak have refused to freeze bills this winter.
In a statement, a Truss campaign spokesperson said: “Today’s announcement will cause grave concern to many people across the UK who will be worried about paying their bills. As Prime Minister, Liz would ensure people get the support needed to get through these tough times.
“She will immediately take action to put more money back in people’s pockets by cutting taxes and suspending green energy tariffs. This is on top of ongoing work such as the Energy Bills Support Scheme, which will see a £400 discount paid to consumers from October, and the £1,200 package of support for the most vulnerable.”
Mr Sunak said that protecting people from rising energy bills would be his “immediate priority” as Prime Minister.
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