Dr King’s Prescription for this winter’s fuel bills - Liberal Democrats plans would save families in Newcastle over £100 million in the coming year

The Government must cancel October energy price rise to save families in Newcastle upon Tyne:
£103,573,694, Dr Aidan King has demanded on behalf of Newcastle upon Tyne Liberal Democrats

He is calling on the Government to spare families from soaring energy bills by cancelling October's price cap increase, accusing the
Conservatives of "stalling in the face of a national emergency".

The bold plan would save a typical household in Newcastle upon Tyne an extra £2,023.58 a
year. The 70% increase in the energy price cap expected to be announced by Ofgem later
this month would be cancelled, with the Government instead paying the shortfall to energy
suppliers so that they can afford to supply customers at the current rates.
This would mean a total estimated saving for households in Newcastle upon Tyne of
£103,573,694 off their electricity and gas bills.

The Liberal Democrats say the estimated £36 billion cost should be met by expanding the
windfall tax on oil and gas company profits, and using the Government's higher-than-
expected VAT revenues as a result of soaring inflation.

The party is also calling for more targeted support for vulnerable and low income
households. This would include doubling the Warm Homes Discount to £300 and extending
it to all those on Universal Credit and Pension Credit, while investing in insulating fuel poor
homes to bring prices down in the long term.

Dr King said: "Hard-working families in Newcastle upon Tyne are already struggling to make ends meet,
and are deeply concerned about how they will cope with the predicted rise in energy bills.
"This Conservative Government is stalling in the face of a national emergency and, yet again,
is simply not doing enough to put money back in the pockets of hard-working people.
"Countless families and pensioners across Newcastle upon Tyne are already struggling, and
they cannot wait for a new Conservative leader to act.
"This is an emergency, and the Government must step in now to help families and
pensioners in Newcastle upon Tyne by cancelling the planned rise in energy bills this
October."

The price cap is currently £1,971 a year for a typical household. It went up by £693 (54%) in
April. The new cap is expected to be around £3,400 - an increase of around £1,400 or 70%.

Cancelling the rise would mean the energy bill for a typical household stays at £1,971 a year,
instead of rising to around £3,400 in October.
The Liberal Democrats are calling for Ofgem not to increase the price cap. Instead, the
Government would pay suppliers the shortfall of what they would've been charging if the
cap had increased, so they can afford to continue supplying their customers.

"We estimate that cancelling the rise would cost around £36 billion. This is based on
Cornwall Insight's latest forecasts for the new price cap, and the number of electricity and
gas meters in Great Britain, " says Aidan King.

A proper Windfall Tax could raise around £20 billion to help keep people's energy bills from
rising in October. Fossil fuel giants have seen their profits soar: BP and Shell made £29
billion in profits in the first six months of the year alone.
The Government should also use the extra VAT revenues it is receiving as a result of
inflation. It took in £11 billion more in VAT last fiscal year (2021-22) than it was expecting in
March 2021, and is now expected to take in an extra £9 billion this year and £10 billion next
year compared to last year's forecasts. That's a £30 billion VAT windfall that the
Government should be using to help families and pensioners.

The Liberal Democrats are also calling for additional help to support the most vulnerable
households. This includes:
* Reinstating the £20-a-week Universal Credit uplift and making it permanent, giving 4.7
million households extra help to keep their heating on.
* Doubling the Warm Homes Discount and extending it to all those on Universal Credit and
Pension Credit, to take £300 a year off the heating bills of around 7.5 million vulnerable and
low income households.
* Doubling the Winter Fuel Allowance, giving up to £600 a year to 11.3 million elderly
pensioners to help with their heating bills.
* An emergency home insulation programme to cut people's energy bills