Cautious welcome for energy plan but more needed

The Bevan Foundation react to the Prime Minister’s announcement on energy costs 

After weeks of speculation the Prime Minister has today, announced the UK Government’s plan to deal with rising energy costs. There was much to welcome about the announcement. 

The decision to freeze the typical household energy costs at £2,500 for 2 years will come as a relief to many. The announcement provides certainty for families and will ensure that many households won’t be pushed into severe hardship this winter. The decision to establish a fund to support households that are off the gas grid is also to be welcomed. 

There are reasons to be concerned that the proposals don’t go far enough. The Bevan Foundation’s recent Snapshot of Poverty report found that 13% of Welsh households already struggle to afford day to day essentials. Today’s announcement will offer scant relief to those families. 

The announcement will also only offer partial relief to households that have non typical energy bills. People on pre payment meters, larger families, some disabled people and people living in poorly insulated homes all face higher costs to heat their homes. For those households, their energy bills could be significantly higher than the headline cap of £2,500. 

It should also be remembered that it’s not just energy costs that are on the rise this autumn. The cost of food, rent and many other essentials are increasing. The need for the UK Government to increase the support that is available to low income households through the benefits system has never been greater.