Economy

Energy bills help 'doesn't go far enough'

BBC News4d ago

Households in the West Midlands said they want to see the government revisit energy bills in the wake of the Budget - amid concerns the help being offered won't go far enough.

Chancellor John Healey announced a £100 'household energy payment' , and a future plan to remove gas standing charges, as part of a wider package to address the cost of living.

Families in the region told the BBC they were "grateful" for the assistance, but were concerned about their finances over the winter.

Kelly Birkett, a personal accountant from Redditch, said: "The £100 is good, but it's not great. It just gets absorbed into everything else families have to pay for, just to get by."

Birkett, a married mum-of-two, said her family was already considering what to cut back on in the wake of the Budget.

"I know I sound a little but ungrateful for the £100, and I don't want to be. I'm certainly not ungrateful," she said.

"But in reality we're no better off. With the temperatures dropping we know the heating will have to be on, the children can't be cold.

"We'll dig deep to make sure we're a little more conservative when it comes to the heating, but for sure it's something most families will be worried about (the winter.)"

Mark Sumner, a coach driver from Alcester, said him and his wife sold their previous home partly to clear old debts that had accrued from bills including energy.

He told the BBC they had fallen into "energy debt" and were concerned about this coming winter.

"We know our bill will go up again, you're just dreading it each time the increase comes around, as to how much it will be," he said.

"I very rarely take our children out for anything to eat anymore, and we're very careful about what we spend at the shops.

"What the government has announced is helpful. I don't want to be ungrateful so I will say it's helpful for us, but it probably only covers one month (of bills).

"So it's a slight help, but it's not enough."

The government said "millions of families" would benefit from the measures announced in the Budget, including freezing fuel duty, the 3.9% minimum wage increase and scrapping plans to reduce the £20,000 tax-free limit on ISAs.

Chancellor John Healey said the energy announcement was "just a small part" of what the government was doing to help families.

"Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs," he said.

"We can't control global events, but we can act where we can make a difference."

There is no definitive date for scrapping the standing charge on gas, but the Treasury has committed to doing it either in 2027 or "as soon as possible after".

The VAT cut on electricity bills, which was due to end in April, will be extended to July next year.

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When will £100 energy support be paid? Will I pay more tax on savings? We answer your Budget questions

'Painful' years ahead, think tanks warn, as living standards set to fall

Source: BBC News. Summary reproduced for informational purposes.

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