Insight

Energy bosses meet with government but no specifics agreed on cost of living crisis

Energy bosses arriving in Downing Street to discuss rising energy prices. Credit: PA

Those that want help, today got something else…a meeting.

Energy bosses met with government.  The prime minister, chancellor, and business secretary all attended todays round table with energy bosses.

  • It was broadly agreed “to do more to help” the most vulnerable - though with no specifics.

  • Government will continue to evaluate “extraordinary profits” of some electricity generators.

  • They stressed the need to strengthen domestic energy.

  • But also emphasised that only the next Prime Minister can make “significant fiscal decisions”.

The outcome has done little to reassure those already feeling the grip of this energy price crisis. Many in the industry, and beyond, see this as a Covid level crisis but without a Covid level response so far.

The UK is in the midst of a cost of living crisis. Credit: PA

Average Bills have already gone up £700 this year.

In May the government announced a £400 discount on energy bills - rising to just over £1,000 for eight million low income households.

But since May energy prices have risen more than £1,500 ( £1,611) according to experts. So there is, in very basic mathematical terms, a £500 support gap for the most vulnerable.

How does the £400 energy bill discount work and how do you claim the money?
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There are plenty of ideas - ranging from renationalisation, an “energy furlough”, social tariffs , and an emergency budget.

There is a distinct shortage of decision making on what will actually be done. People are worried now, they already know they can’t cope, we all know the daunting figures but we still don’t know what’s the plan is. Today the former Prime Minister Gordon Brown said “time and tide wait for no man … and nor does a crisis".

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What’s holding things back is clear. The new PM won’t be announced until September, about four weeks before the new prices start.

The new PM will be concerned about the energy bill government will face for intervening.

The Lib Dems have estimated the cost of the state absorbing the costs of the October price rise would be £42 billion.