“Middle earners face further squeeze as Hunt plots 'social tariffs' for energy
Ministers look at policy to subsidise bills for low income households
Middle earners face a fresh income squeeze as the Government examines plans for “social tariffs”, which would see the energy bills of vulnerable households subsidised through levies on bills paid by the better off.
The Government plans to “develop a new approach to consumer protection in energy… including options such as social tariffs,” documents published alongside the Chancellor’s Autumn Statement show.
Social tariffs would see the energy bills of low earners capped at a certain level, with the policy paid for either through general taxation or a charge on the bills of higher earners.
The proposal is being looked at as part of Jeremy Hunt’s plan to replace a blanket cap on energy bills that will average £2,500-a-year this winter.
Economists warned that social tariffs risked dragging millions more households who do not qualify for benefits into fuel poverty by excluding them from support.
It comes amid a growing backlash to Mr Hunt's economic policies from Conservative MPs, who have warned that a tax grab will stifle growth and lead to the Tories being wiped out in the next election.
Changing the way energy support is delivered could potentially add hundreds of pounds a year to the bill of an average middle class household if social tariffs are adopted and paid for through a levy added to other bill payers. The energy price cap is already set to rise to an average of £3,000 from April, Mr Hunt has said.”
https://www.telegraph.co.uk/business...ariffs-energy/
Great alternative to having a long term energy security strategy…
Ministers look at policy to subsidise bills for low income households
Middle earners face a fresh income squeeze as the Government examines plans for “social tariffs”, which would see the energy bills of vulnerable households subsidised through levies on bills paid by the better off.
The Government plans to “develop a new approach to consumer protection in energy… including options such as social tariffs,” documents published alongside the Chancellor’s Autumn Statement show.
Social tariffs would see the energy bills of low earners capped at a certain level, with the policy paid for either through general taxation or a charge on the bills of higher earners.
The proposal is being looked at as part of Jeremy Hunt’s plan to replace a blanket cap on energy bills that will average £2,500-a-year this winter.
Economists warned that social tariffs risked dragging millions more households who do not qualify for benefits into fuel poverty by excluding them from support.
It comes amid a growing backlash to Mr Hunt's economic policies from Conservative MPs, who have warned that a tax grab will stifle growth and lead to the Tories being wiped out in the next election.
Changing the way energy support is delivered could potentially add hundreds of pounds a year to the bill of an average middle class household if social tariffs are adopted and paid for through a levy added to other bill payers. The energy price cap is already set to rise to an average of £3,000 from April, Mr Hunt has said.”
https://www.telegraph.co.uk/business...ariffs-energy/
Great alternative to having a long term energy security strategy…
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