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Liverpool Echo
Liverpool Echo
Business
Peter Davidson & Kate Lally

Government U-turn over energy use as price cap soars

People in the UK are now being told to cut back on their energy use, after being told to use as much as they want by Chancellor Nadhim Zahawi earlier this week.

It comes after confirmation that the energy price cap will soar by a staggering 80% earlier today (Friday). Regulator Ofgem announced the cap will increase from the current £1,971 to £3,549 from October 1.

When asked if people should start reducing their energy use, Mr Zahawi today said: "The reality is that we should all look at our energy consumption.

READ MORE: Huge energy cap price hike confirmed for October as cost of living crisis worsens

"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."

The Chancellor's comments come as Prime Minister Boris Johnson said he does not think the Government should "cap the whole thing" for "the richest households in the country". Speaking to broadcasters during a visit to South West London Elective Orthopaedic Centre in Surrey, the PM addressed today's energy cap announcement and what the Government is doing to support households with rising energy bills, the Daily Record reports.

He said: "We want to target the households so most of the money will go to the eight million most-vulnerable households, that's the right thing to do. A lot of money will be going to absolutely everybody. What don't think we should be doing is trying to cap the whole thing for absolutely everybody, the richest households in the country.

"This will go on for a few months and it will go on over the winter. And it will be tough - and I'd be very clear about that - but in the end, we are also putting in the measures we need to ensure that we have the energy independence to get through this.

"And we are putting in more nuclear, and we are putting in more wind power. We have already seen a 26 per cent increase in British gas now from the North Sea."

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