Borrowing huge amounts of money to pay people’s energy bills could spark a housing crisis, George Eustice has warned.
The environment secretary was asked on Sky News about Rishi Sunak’s plan to help people with their energy bills.
Mr Eustice said: “The problem with borrowing huge amounts of money to pay people’s energy bills is you really risk fuelling the inflationary pressure that we are already seeing.
“We have got to get inflation back under control because if we don’t get it back under control, then interest rates will rise, people’s mortgage rates will go up, and we risk a housing crisis.”
The environment secretary said inflation is a “global phenomenon” adding: “We’re never going to be able to pay everyone’s energy bill in its entirety. This is a consequence of the pandemic.”
It comes as oil company Shell reported record profits of $11.5bn, doubling its earnings in a single year while British Gas owner Centrica has seen operating profits increase five-fold to £1.34 billion as energy bills soar.
