‘Catastrophic winter’ ahead for households as bills soar, energy boss warns
It would cost the government more than £110bn to cover nearly all of Britons’ extra energy costs over the next year, according to a think-tank.
Its report raised the prospect of “substantial” spending during the cost of living crisis as it laid out what choices the next prime minister could face to ease pressures on household budgets.
The Institute for Government said it would cost £23bn to cover October’s energy price cap hike. Meanwhile, the think-tank found extending support to ease the pain of soaring bills next year would cost another £90bn.
It comes as household prepare to see bills rocket once again when a new energy price cap – which sets the maximum amount customers on standard tariffs can be charged – is set on Friday.
Experts are forecasting another huge rise in energy bills from £1,971 to potentially as much as £3,600 per year as global gas prices continue to soar.
Kuenssberg says Boris Johnson ‘personality and behaviour’ led to downfall
In other news, BBC broadcaster Laura Kuenssberg has said Boris Johnson’s own “personality and behaviour” led to his eventual downfall as prime minister.
Boris Johnson ‘personality’ led to his downfall, says Laura Kuenssberg
Ex-BBC political editor shares details of ‘very hot and very bizarre’ Tory summer party
Zoe Tidman24 August 2022 11:09
Energy price rises ‘impossible to afford’, says ex-Centrica boss
Iain Conn, the former chief executive of Centrica, said he supported Scottish Power’s £100bn plan for a deficit fund allowing the energy companies to freeze prices – an idea backed by trade body Energy
UK.Conn said “something has to be done and done quickly” with the UK “facing a national crisis”.
He told BBC Radio 4’s Today programme: “The magnitude and pace of price rises are simply impossible for customers, whether they are individuals or businesses, to plan for, manage and afford.”
Adam Forrest24 August 2022 10:55
£110bn needed to cover energy bill rises over next year, think-tank says
The government would need to spend more than £110bn to cover almost all of Britons’ extra energy costs over the next year, a new report by Institute for Government (IfG) has found.
It would cost £23bn to cover October’s energy price cap hike, according to the think tank – with the average household set to spend £900 more on energy this autumn than was expected only three months ago.
Extending support to ease the pain of soaring bills next year would cost another £90bn, the IfG said, raising the prospect of “substantial” spending during the cost of living crisis.
£110bn needed to cover energy bill rises over next year, study finds
Liz Truss and Rishi Sunak plans will only make ‘small dent’ in bills, warns Institute for Government
Zoe Tidman24 August 2022 10:34
Liz Truss suggests she wouldn’t have ethics adviser as PM
In others news, Liz Truss has signalled that she will not appoint an ethics adviser if she replaces Boris Johnson, suggesting it was unnecessary because she knew “the difference between right and wrong”.
Liz Truss says no need for ethics adviser because she knows ‘right and wrong’
‘You cannot outsource ethics to an adviser’, says Tory leadership frontrunner
Zoe Tidman24 August 2022 10:31
Cost of living crisis and Russia
Re-establishing relations with Russia would be “catastrophic” and make the cost of living crisis “100 times worse”, Britain’s armed forces minister has said.
Political correspondent Adam Forrest reports:
Russia appeasement would make cost of living crisis ‘100 times worse’, says minister
Trying to repair relations with Moscow would be ‘catastrophic’, says UK Armed Forces minister
Zoe Tidman24 August 2022 10:10
Sunak compares himself to Thatcher
Rishi Sunak has compared his approach to the economy to Margaret Thatcher.
The Tory leadership hopeful said that like the former PM, “I don’t want to make promises that I can’t keep.”
Mr Sunak told BBC Radio 4’s Today he was “very privileged and humbled” that supporters of her economic policies were backing him, as he attacked Liz Truss’ “unfunded” tax cuts.
He declined to be drawn on whether he would revolt and vote against Truss’ tax cutting emergency budget if she became prime minister and he was a backbench MP.
He said he is “not going to engage in these things” while the race is still under way.
“Right now, we should be talking about the major challenges that our country faces – creeping inflation, getting support to people who need it.”
Asked if he thought the Tory leadership contest had been too long, Mr Sunak said: “I don’t have a choice … When it’s over I’m sure we can look back and reflect.”
Adam Forrest24 August 2022 09:52
Union leader dismisses ‘scaremongering’ over minimum wage
The Trade Unions Congress boss has said there has been “scaremongering” over the impact of the minimum wage on business ever since it was introduced, when asked whether businesses would struggle with an increase to £15-an-hour.
Zoe Tidman24 August 2022 09:34
What options face the next PM in cost of living crisis?
A new Institute for Government report has set out the urgent choices facing the next prime minister in the cost of living crisis.
It said they may need to announce tens of billions of pounds more in support for households this winter.
The report sayid options to ease pressures included:
- Extending current support package
- Using targeted support
- Capping energy bills
Zoe Tidman24 August 2022 09:16
ICYMI: Labour plan to change minimum wage so it reflects cost of living
Labour revealed plans at the weekend for the minimum wage to factor in the cost of living – which could see low-paid workers earning hundreds of pounds more a year.
Labour sets out plan to change minimum wage so it reflects cost of living
Angela Rayner says workers should not receive a ‘fake living wage they can’t live on’
Zoe Tidman24 August 2022 08:59
Minister says universal freezing of energy bills ‘not best solution’
James Heappey has said he does not believe a universial freezing of energy bills is the way to go to support people during the cost of living crisis in winter.
He said “more targeted” packages are “probably the better solution” to get money to those who needs it most:
Zoe Tidman24 August 2022 08:41