The Progressive Alliance has backed calls for the Government to announce an energy bill price cap freeze, as reports suggest that average household energy bills could top £5,300 in April next year.
This crippling price forecast is a massive increase on previous predictions. It comes as October’s price cap is set to be announced on Friday, with the average family expected to pay around £3,553. This means that energy bills could increase by over £1,700 between October 2022 and April 2023.
As a result, the Progressive Alliance is calling on the Government to take Friday’s announcement as an opportunity to introduce an emergency price cap paid for by a windfall tax on oil and gas companies which are making mammoth profits in the billions.
Councillor Pete Marland, Labour Leader of Milton Keynes Council, said:
“Energy firms are making record profits while families are struggling to pay their gas and electric bills. How can BP make £6.9 billion worth of profit in three months, which is triple what they made in the same time last year, all while people are choosing between heating, eating and debt? There will be families on £20,000 a year that, come April, won’t be able to pay a quarter of their wage on heating their home. It’s completely unacceptable and something has to be done before even more families plunge into poverty.”
Councillor Robin Bradburn, Liberal Democrat Deputy Leader of Milton Keynes Council, added:
“Labour and Liberal Democrat policies call for a windfall tax on the multi-billion-pound energy companies to pay for an energy price cap freeze. Even just a slither of their monthly take home profits would save thousands of local families from making tough financial decisions, and yet the Government isn’t doing anything. Food prices are going up, the cost of petrol is out of control, inflation is soaring at record rates – and soon people could be forced to pay over £5,000 to heat their home. The Government must announce a price cap freeze immediately otherwise the result could be catastrophic.”