Energy bills are set to surge in October (Danny Lawson/PA)
(Picture: PA Archive)The UK must “substantially” increase payments to households to help with surging energy costs this autumn, the Government has been warned.
With the price cap expected to rise from £1,971 to £3,582 a year from October, Nigel Pocklington, chief executive of Good Energy, has warned it is now too late to devise a new scheme in time for the price cap rise.
Instead, speaking to the Standard, he called on the Government to possibly double the energy rebate and “substantially” bolster social care payments to the most vulnerable households in the country in order to “get through the winter”.
“It’s taken from May to now, to get the mechanics ready for the Energy Payment Support Scheme (EPSS).
“So anything you choose to do now, needs to work within the existing channels to get the sort of cushioning in place for consumers,” he said.
“That help could be to increase the energy rebate to £600 or £800 or via the social security scheme.”
From October, all households will receive a £400 rebate which will be spread over six months and will come as part of a £15billion energy relief package.
With the Tory leadership contest still ongoing, the Government and both candidates have refused to announce concrete plans until a new prime minister is elected next month.
Throughout the campaign, Liz Truss has said tax cuts are the most effective way to deal with surging energy costs, and claimed the current support scheme has not been targeted to support the most vulnerable.
While agreeing with Ms Truss, Mr Pocklington claimed the Government has “run out of time” to amend the current plans.
According to Cornwall Insight, the price cap is expected to rise to £4,266 next January before increasing again to £4,426 in April.
