Foodbanks are rejecting donations of potatoes and root vegetables as people can't afford to boil them, according to the boss of Iceland.
Richard Walker, the supermarket chain's managing director, told BBC Radio 4's Today programme: "I think the cost of living crisis is the single most important domestic issue that we’re facing as a country and it is incredibly concerning. You know, we’re hearing about some food bank users declining potatoes and root veg because they can’t afford the energy to boil them.”
But he added that business was “not an endless sponge that can soak it all up”. Instead, he suggested energy price caps for consumers could be extended to businesses, potentially paid for by a windfall tax - as has been suggested by Labour and rejected by the government - a cut in VAT, or even placing green taxes on hold.
Read more: One in three universal credit claimants can't afford to eat, new report says
Energy prices are already at historic highs, and they'll increase further when the price cap increases by 54 per cent, or £708, next month. On April 1, the maximum a typical household can spend on energy will go from £1,309 to £2,017 per year; a further rise to £2,500 to £3,000 is expected in October.
To mitigate the impact, the government last month announced a £150 council tax rebate for people in bands A to D, as well as a £200 loan on energy bills in October. This will reduce energy bills that month by £200, but households will then be forced to pay £40 more per year for the next five years to pay back the money.
Campaigners, opposition parties, businesses, and experts are urging the government to go further, especially since Russia's invasion of Ukraine - and the associated sanctions on Russia, which exports much of the world's oil and gas - has pushed energy prices up yet further. Martin Lewis, the self-styled Money Saving Expert, said on the weekend that he was "virtually out of tools to help people", and that "we need political intervention".
Rishi Sunak, the chancellor, is expected to outline his response to the cost of living crisis later today. Early reports indicate he may cut fuel duty by 5p per litre.
