Chancellor Nadhim Zahawi has said that 'nothing is off the table' when it comes to plans to tackle the energy crisis. However, he did seem to rule out freezing the energy cap claiming it would not deliver "targeted help".
Energy bills are expected to continue to rise, with the cap expected to hit £4,500 in January. The Treasury said it is “working up options” to support households as their finances come under further strain.
The Chancellor said doing so would allow the new Prime Minister to "hit the ground running" when they came into power. Rishi Sunak and Liz Truss are currently running for the top job.
When it came to the energy bill crisis, Mr Zahawi said essentially nothing is off the table”. But he added that “we need targeted help for the families who need it most”.
A freeze in the price cap would help all households, including wealthier families who may “not necessarily need the help as much as those whose funds are really stretched”.
Speaking to STV News, Mr Zahawi said: “My issue is with it is it would help wealthier households. If you try and spread the help to every household you are not targeting those who really need it.”
He questioned: “Is it a good strategy to help wealthier households when they can afford essentially to pay more for their energy at the moment or is it better to target it and make it last longer, so that we have that ability to continue to help those families that need the help.”
The idea of a freeze in the price cap was initially pitched by Keith Anderson, the chief executive of energy firm Scottish Power, Mr Zahawi stated. The Chancellor said: “He made the pitch two weeks ago, nothing is off the table.”
Mr Zahawi accused Russian President Vladimir Putin of using “energy and gas as a tool against the British people because of the help we’re giving to Ukraine”.
Supply issues linked to Russia’s invasion of Ukraine are one reason behind rapidly rising power bills – with recent warnings suggesting the average amount UK households pay for their gas and electricity could reach £6,000 next year.
