Fife MP calls for scrapping of energy price cap rise

The bold plan would save a typical household in Fife £1881 a year.

The 70 per cent increase in the energy price cap expected to be announced by Ofgem later this month would be cancelled, with the Government instead paying the shortfall to energy suppliers so that they can afford to supply customers at the current rates.

The Liberal Democrats say the estimated £36 billion cost should be met by expanding the windfall tax on oil and gas company profits, and using the Government’s higher-than-expected VAT revenues as a result of soaring inflation.

The party is also calling for more targeted support for vulnerable and low income households.

This would include doubling the Warm Homes Discount to £300 and extending it to all those on Universal Credit and Pension Credit, while investing in insulating fuel poor homes to bring prices down in the long term.

Ms Chamberlain said: “Hard-working families in Fife are already struggling to make ends meet, and are deeply concerned about how they will cope with the predicted rise in energy bills.

“This Conservative Government is stalling in the face of a national emergency and, yet again, is simply not doing enough to put money back in the pockets of hard-working people.

“Countless families and pensioners across the country are already struggling, and they cannot wait for a new Conservative leader to act.

“This is an emergency, and the Government must step in now to help families and pensioners by cancelling the planned rise in energy bills this October.

"The Scottish Government should also do their part by kicking off a massive home insulation programme to bring down energy bills.”

Ofgem is due to officially announce the next energy price cap on Friday, August 26, and it will apply to most variable tariff energy bills from October 1 to December 31, 2022.

According to predictions from analysts at Cornwall Insight, energy bills are likely to hit £3,582 per year, based on average typical use.