Any rescue package would need to be swift and extensive to prevent households being plunged into poverty this winter as home energy prices escalate. Ministers will also need to dig deep to prevent more businesses hit by rising energy costs from defaulting on loans and declaring themselves bankrupt.
An increase in benefits
The government’s energy bills support scheme provides a £400 discount on bills in October for every household, a £650 means-tested one-off-payment to eight million low-income households, £150 for those on disability benefits and £300 for pensioners. This was designed when the forecast for the October price cap was £2,800.
Most economic thinktanks have urged the government to focus on boosting the finances of low-income families to meet the higher costs of energy from an increase in the cap in October and January, possibly to as high as £4,200 a year.
The International Monetary Fund has criticised European countries, including the UK, for offering some subsidies to all income groups rather than targeting cash at those who are most vulnerable to fuel poverty.
This story is from the August 11, 2022 edition of The Guardian.
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This story is from the August 11, 2022 edition of The Guardian.
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