The Chancellor has suggested that households need to look at how they are using energy amid calls for urgent government intervention to tackle soaring energy bills.
It comes as outgoing Prime Minister Boris Johnson predicted a “tough” few months ahead. But he promised energy prices will eventually come down amid grim predictions about the impact the 80.06% rise in the energy price cap will have on millions of the poorest households across the UK.
Nadhim Zahawi told broadcasters help from the government is coming, but admitted: “We know that’s not enough. We’ve got to do more. We need to make sure that this isn’t a sticking plaster, that for the long term we continue to help the most vulnerable who have no cushion, and that’s what I’m determined to do."
Read more: What happens if you are struggling to pay energy bills and can't afford price cap
“And we’re working up those options for both households and for business for the incoming prime minister on September 5 to take those decisions. So my message today is, ‘We’ll get this £37 billion to people to help them for now, and then more will be coming because we know this will continue in January and, of course, on to April and next year and we have to remain resilient’.”
But Mr Zahawi also acknowledged that it is perhaps now the time to give greater heed to how we use energy. “The reality is that we should all look at our energy consumption. It is a difficult time. There is war on our continent.
“Very few people anticipated war. Wars happen in far-flung places. It is now here with us. We have to remain resilient. My responsibility is to deliver that help.”
Mr Johnson, entering his final few days in office, also said the government has a “big, big package of help and support”. He said the “extra cash” will come in September.
“There’s a pipeline of cash coming through over the next few months and through the autumn and the winter. But that is clearly now going to be augmented, increased, by extra cash that the government is plainly going to be announcing in September,” he told broadcasters during a trip to the South West London Elective Orthopaedic Centre in Surrey.
Opposition politicians, industry regulator Ofgem and campaigners were all united on Friday in calling on the government to intervene urgently, as charities warned that households across the country could be plunged into poverty by the soaring energy bills. The energy price cap will rise yet again in October, soaring to £3,549 in the autumn.
Regulator Ofgem said the new price cap will last for three months until October 1. But from January, analysts expect the cap to rise again to £4,200. The announcement came amid the worsening cost-of-living crisis, with petrol and household item prices soaring and taxes and interest rates also going up.
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