THE UK Government has been told to “get a grip” on the cost-of-living crisis hammering Britain as new statistics reveal that energy bills could go up by as much as 50 per cent in the spring.
After soaring gas prices hit energy suppliers hard and saw many go under during 2021, experts have warned of runaway household bills in 2022.
The energy price cap is currently set at £1277 by Ofgem, but this is set to rise substantially in the new year.
Trade body Energy UK is calling on the Westminster government to intervene as people across the UK face steep increases.
READ MORE: A third of Scots find energy bills unaffordable, poll finds
Emma Pinchbeck, the body’s chief executive, told the BBC’s Today programme that she expects domestic energy prices to soar by up to 45% and 50%.
“It is looking pretty serious for the spring. This is a system-wide issue now. We are asking for the Treasury in the UK to intervene as others have [in Europe],” she told listeners.
“We have had record-breaking gas prices across Europe since September and over the last couple of weeks prices have spiked again and they are at levels we frankly have not really faced in the industry,” Pinchbeck explained.
“Particularly not in a winter period, with the UK in the middle of a pandemic, and other cost of living issues and inflation.”
Pinchbeck said the UK Government could shave £90 off each customer’s bill by cutting taxes or VAT, and a further £190 by bringing forward proposals to remove policy costs, particularly on electricity.
In October, the European Commission set out proposals to its 27 member countries advising on how to mitigate the impact of energy cost rises on the public.
The recommendations included adopting tax cuts and state aid, with options like bill payment deferrals or partial bill payments also floated.
According to EU officials, 20 member countries have already taken action to reduce the financial strain on households. For example, Italy and Portugal have both cut energy taxes and lowered the sales tax on household energy by half, from 21% to 10%.
The SNP’s shadow energy spokesperson Alan Brown urged the UK Government to implement similar measures.
READ MORE: Scottish Power bills woman £1500 for energy she did not use
“This cost-of-living crisis falls directly at the door of No 10, therefore it is their responsibility to get a grip of this crisis,” he said.
“It is vital that Boris Johnson and Rishi Sunak follow the example set by numerous governments’ across Europe by reducing taxes on bills. By doing so, the Tories would be putting money back into customers pockets at a time when bills elsewhere continue to soar.
“And let’s not forget that while people across Scotland face enormous rises in their energy bills, the Treasury will be raking in substantial tax receipts from the inflated price of gas.
“There can be no more delays from the Tories. It is time to step up and perform their moral duty to families the length and breadth of the country.”
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