Article first published in the Cornish Guardian newspaper.
As predicted by numerous commentators, Ofgem (the energy regulator) last week increased its cap on annual energy bills to an average of £3,549 from October. Further increases are expected and it is disturbing that the frontrunner to be the UK’s next Prime Minister, Liz Truss, appears unwilling to consider radical measures to address the present crisis being promoted by a host of organisations.
The Resolution Foundation thinktank, for example, has called for price freezes, solidarity taxes or lower social tariffs to stop the cost of living crisis getting worse. The social tariff would ensure that low-income households would receive a greater reduction in their energy bills, while a solidarity tax would mean an increase in income tax for those on higher incomes, which would be redistributed to support poorer families.
A spokesperson from the Foundation is right to point out that “a catastrophe is coming this winter as soaring energy bills risk causing serious physical and financial damage to families across Britain” adding that “we are on course for thousands to see their energy cut off entirely, while millions will be unable to pay bills and build up unmanageable arrears.”
Even the head of Scottish Power has suggested a two-year freeze on energy bills, but this has been rejected by senior Conservatives.
It is hardly surprising that a new movement – titled Enough is Enough – has recently been launched. It is planning some fifty rallies this month and has a series of policy demands.
In terms of energy prices, Enough is Enough is calling on the UK Government to “cancel the October price hike and return to the significantly lower pre-April energy price cap” and, in the longer term, to bring energy companies into public ownership.
Other demands to tackle inequality across UK society include better support for those of low wages, benefits or the state pension, and action to end food poverty through universal free school meals and reinstatement of the £20-a-week uplift in Universal Credit.
The new organisation also has a strong commitment to housing justice. Proposals include rent controls, a charter for renters’ rights, greater investment in proper council homes, an end to right-to-buy, and controls to limit second homes / holiday homes and AirBnBs.
And last but not least, Enough is Enough also want more progressive taxation, with the wealthiest paying their fair share, and a better crackdown on tax avoidance and tax evasion.
I wish the Government was listening – but I know it is not.