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The energy price cap has been raised to record levels increasing the cost the government will pay to cover supporting energy bills. Ofgem raised the price cap to 67p per unit for electricity and 17p for gas from January. The decision will not affect how much households pay for their energy because the government said electricity will cost 34p per unit and gas 10.3p until April. Without government support, the average household would pay around £4,279 for their energy under the new cap. The support will ensure that average households pay £2,500. Experts at energy consultancy Auxilione estimate the new cap will cost the government around £15.1bn to subsidize household bills between January and March. It is set to add to the massive pressure the public exchequer faces in the coming months due to skyrocketing gas prices.
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Energy consultancy Cornwall Insight said the price cap is likely to remain high from April, at just over £3,900 for the average household. It means the government could end up paying around £42 billion over the 18 months it has promised to support households with their energy bills, despite support becoming less generous since April. Principal adviser Craig Lowrey said: “This highlights the nature of the wholesale risk the government is taking in deciding to extend the EPG beyond the March 2023 date announced by the chancellor in October, meaning the full cost could potentially be higher than what is currently provided. “Expanding the EPG, even at a high level, has exposed the government to variables and factors over which it has no critical control. The risk decreases as the support level changes but remains acute. “With Cornwall Insight predicting that energy prices will remain above historic levels for many years to come, one thing is clear: more targeted support for the most vulnerable is likely to be needed on an ongoing basis if the Government is to protect consumers, while at the same time stabilizing finances.” Thomas Kingsley24 November 2022 10:30 1669284047
B&Q sales were boosted by sales of energy efficiency products
B&Q parent company Kingfisher has revealed that sales of loft insulation materials have more than doubled as customers looking to improve energy efficiency in their homes have helped boost the retail group. The company, which also owns Screwfix, recorded higher revenue last quarter as the DIY market also benefited from the continued shift to working at home. Chief executive Thierry Garnier said: “While the market landscape remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear increase in customer investment in energy saving and efficiency ». B&Q said sales of loft roll insulation rose 108 per cent for the three months to October 31, compared with the same period last year, as customers tried to offset soaring energy prices. (PA Wire) Thomas Kingsley24 November 2022 10:00 1669282847
Government energy saving advice ‘not here to stay’, Gove says
A public information campaign to encourage people to save energy will not be “parasitic or patronising”, a senior minister has said. The scheme could show households how to save up to £420 on their bills, while also delivering potentially huge savings for taxpayers by reducing the cost of the energy price guarantee. Leveling Up secretary Michael Gove said the government would direct people to “valid sources of advice” on managing energy use. The Times reported that ministers are preparing a £25m public awareness campaign, including tips such as turning off radiators in empty rooms and taking showers instead of baths. Officials identified eight changes to save up to £420 a year, including reducing the flow temperature from boilers, switching off electrical appliances instead of leaving them on standby and switching from baths to showers. Thomas Kingsley24 November 2022 09:40 1669281500
Housing Secretary in talks with Rochdale Boroughwide Housing
Housing Secretary Michael Gove said he would hold talks with Rochdale Boroughwide Housing, which owns the flat linked to Awaab Ishak’s death. He told BBC Breakfast: “The chief executive after resigning over this tragic case, I’m going to Rochdale later today to talk to them and talk to others about the situation there. But my view at this time is that this organization does not deserve to receive this additional funding.” Asked if the agency should continue to operate, he said: “I will talk to them later today. I already have talks with the chairman of the organization and talks with the outgoing CEO and I want to see the situation on the ground. “If the penny has dropped, if the organization is prepared to take the appropriate lessons for improvement and there is evidence that they fully appreciate the need for improvement, we will work with them, and indeed with Rochdale council, to make improvements.” Awaab Ishak who died in December 2020 (Family Leaflet/PA) Thomas Kingsley24 November 2022 09:18 1669279847
Tens of thousands of homes are ‘unsafe’, says Michael Gove
Housing Secretary Michael Gove said “at least” tens of thousands of homes are unsafe. He told BBC Breakfast: “I’m afraid there are tens of thousands of properties that are not in the condition they should be.” Pressed on whether the tens of thousands were correct, he said: “Yes, at least. “We know that there are a significant number of properties – some of which were built in the 60s and 70s and are in poor condition, but some of which have been poorly maintained – which simply need to be repaired and properly maintained.” Thomas Kingsley24 November 2022 08:50 1669278947
Negotiations ‘key’ to solving rail strikes, Michael Gove urges
Leveling Secretary Michael Gove stressed that negotiations are key to avoiding strikes after Transport Secretary Mark Harper said he would not negotiate with the rail union boss. Mr Gove told TalkTV: “The way to resolve some of these disputes is through discussion, through negotiation, through listening. “And it will be the case that the transport secretary, my friend Mark Harper, will meet Mick Lynch, the general secretary of the RMT, later today to talk about it. “I hope the two of them and others can set the stage so that the people who are actually the key negotiators, the railway bosses, can find a way with Mr Lynch.” Thomas Kingsley24 November 2022 08:35 1669277747
There should be no “whitewash” in the Raab bullying inquiry, says Angela Rayner
Deputy Labor leader Angela Rayner said: “There should be no hint of whitewashing when it comes to the raft of serious allegations now facing the Deputy Prime Minister. “The scope of this investigation must be expanded immediately to enable a proactive investigation into Dominique Raab’s conduct during his tenure as minister, including so-called expressions of concern, informal complaints and the relevant testimony of his own former permanent secretary. “This Conservative government has a worrying record of brushing serious wrongdoing under the carpet. Their refusal to act on the findings against Priti Patel previously led to their former head of ethics resigning in disgust. “An interim investigator, appointed in a panic, with an absurdly limited remit is no solution to dealing with the multitude of allegations of ministerial misconduct that now require investigation.” (EPA/Getty) Thomas Kingsley24 November 2022 08:15 1669276325
In the latest cost of living news, the price the government will have to pay to support households with their energy bills is set to rise from January as Ofgem raised its energy price cap to 67p per unit for electricity and 17p for natural gas. The decision will not affect how much households pay for their energy because the government said electricity will cost 34p per unit and gas 10.3p until April. Without government support, the average household would pay around £4,279 for their energy under the new cap. The support will ensure that average households pay £2,500. Energy is charged per unit, so those who use more can spend more. Read the development story here: Thomas Kingsley24 November 2022 07:52 1669275031
ICYMI: Chancellor Jeremy Hunt insists he does not support rejoining the EU single market
Chancellor Jeremy Hunt has insisted he does not support Britain rejoining the European Union’s single market after a backlash from Tory Brexiteers. He issued a carefully worded denial that he was the source of suggestions that the government was considering a Swiss-style relationship with the EU. Conservative Eurosceptics were up in arms after the Sunday Times reported that senior government figures were working to regain access to the single market. Read the full story here: Maroosha Muzaffar24 November 2022 07:30 1669273831
Sunak appoints top KC to investigate bullying allegations against Raab
Commercial and employment law expert Adam Tolley KC will examine the claims against Mr Raab following two formal complaints made about his conduct. Downing Street said Mr Tolley’s remit could extend to other allegations about Mr Raab following a series of allegations relating to his time as foreign secretary and his first stint at the Ministry of Justice. Read the full story here: Maroosha Muzaffar24 November 2022 07:10
