Expected rise in household gas and electricity bills by £200

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Chippy_Tea

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Labour has called for a windfall tax on North Sea gas and oil producers to help limit the expected rise in household gas and electricity bills by £200
The party says its £6.6bn plan would also remove VAT on domestic energy costs for a year and increase the warm homes discount for poorer households.
Shadow chancellor Rachel Reeves told the BBC the UK was "uniquely exposed" to global energy price rises.
But the government said it was working to manage the impact on consumers.
And Prime Minister Boris Johnson has not ruled out taking steps to tackle the rising cost of energy, amid pressure from some of his own backbench MPs.

The trade body Energy UK predicts bills will surge by up to 50% in April, when the change to the price cap, due to be determined in February, kicks in. This could leave an average household paying about £700 more per year, it says.
UK inflation hit a 10-year high in November, with the rate expected to increase to further in the next few months, while National Insurance contributions are set to rise in April. This has led to warnings of a cost-of-living "crisis".

Under Labour's plan, North Sea energy producers, their profits boosted by price rises, would be forced to pay £1.2bn to mitigate household bills through a year-long increase to their corporation tax of 10 percentage points.
The party also wants an extra £3.5bn to be spent on the warm homes discount, increasing it from £140 to £400 per year, while doubling the number of households eligible to 9.3 million.
VAT, currently set at 5% for household energy bills, should be removed for a year from April - six months longer than Labour has previously called for - the party adds.
The prime minister has argued that a VAT cut would be too "blunt" a tool, as it would affect all households, including the richest, rather than targeting those most in need.

Full article - Labour urges energy firm tax hike to help cut household bills
 

Chippy_Tea

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Its obscene how much these companies make when people are struggling to keep warm and are facing huge rises in bills over the coming months.


The UK’s biggest energy companies made a profit of £1bn last year and have increased their profit margins in recent years despite losing millions of customers to challenger firms, according to Ofgem – the Office of Gas and Electricity Markets.
The energy regulator said the big six suppliers enjoyed a healthy margin of 4.5% on average in 2016 by charging higher prices to consumers who have not switched, with the gap between the best and worst tariffs widening to £300 a year.
Almost half of people who are unemployed or in low-skilled work have never switched supplier, a new report by the regulator found (pdf). For other customers, the figure is below a third.

 

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