Second home owners in Northumberland are set to take home more than £1.4 million thanks to the Government’s plans for an automatic energy bill discount.
Chancellor Rishi Sunak’s latest round of support for households amid the cost of living crisis included a £400 discount on energy bills to be paid from October.
It comes after Ofgem warned the energy price cap is expected to rise by around £830 in October to around £2,800, heaping pressure on already stretched household budgets. The cap had already risen by £693 (54%) in April from the previous cap six months earlier.
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Mr Sunak’s discount was double the previous amount announced in February, and has also changed into a grant rather than a loan that would have been repaid over the next five years. However, it will go to every home in the country, regardless of need – meaning those who own two or more homes will benefit multiple times over.
According to the latest figures, Northumberland has 3,538 second homes, meaning those owners are set to receive a total of £1,415,000 in energy discounts. The total amount handed out across Northumberland’s 157,460 homes will be close to £63 million.
Northumberland Labour leader Scott Dickinson branded the situation a “slap in the face” and criticised the government’s reasoning.
He said: “An eye watering £1.4m is going to people who have a second home in our county to help them pay their energy bills; there are more than 3,500 second homes in the county.
“What a slap in the face for local people who can hardly afford to have one home in the place they were born and bred.
“This grant is going to everyone, regardless of need, so people with multiple homes will benefit multiple times over. We’re told the system of taking out second home owners would be too complicated but honestly, where there’s a will there’s a way.
“It’s strange how the Government can pinpoint to the last person when they’re taking £20 a week from people who really need it.”
There are 301,000 official second homes across Great Britain. If each one receives a £400 energy discount, the total bill to the Government will be £120.5 million.
The grants will be paid for via an energy profits levy on companies making huge profits as prices skyrocket. Introducing the measures, the chancellor, Rishi Sunak, said: “We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills.
“We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I’m targeting this significant support to millions of the most vulnerable people in our society. I said we would stand by people and that is what this support does today.
“It is also right that those companies making extraordinary profits on the back of record global oil and gas prices contribute towards this. That is why I’m introducing a temporary Energy Profits Levy to help pay for this unprecedented support in a way that promotes investment.”
The Treasury has been contacted for comment on Coun Dickinson’s remarks.
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