Gas prices: MPs and peers urge PM to act on energy bills

By Rob Corp.
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The prime minister has been urged to tackle the cost of living by a group of Conservative MPs and peers.

Five ex-ministers wrote to the Sunday Telegraph arguing for a cut in environmental taxes.

The increases in wholesale gas prices have been followed by their call. The experts say the average bill could hit £2,000 in the next few years.

The government is meeting with suppliers and the regulators to work out how to help consumers.

Edward Argar told Times Radio that there were a range of measures to help those who felt the squeeze with their house bills.

The Net Zero Scrutiny Group of Conservatives organised the letter to the Telegraph to keep an eye on the consequences of the government's environmental commitments.

The group's chairman is one of the people who signed the letter.

"We don't need to point out that high energy prices, whether for domestic heating or for domestic transport, are felt most painfully by the lowest paid," the letter states.

The average household could save up to £200 on their energy bill if the 5% VAT rate on energy bills and environmental levies were scrapped.

The Chancellor's tax policy is a matter for him, but the key issue for us all is to get the economy re-opened, to get businesses firing up again, said Stephen Barclay, a Cabinet Office minister.

Mr Halfon said he was worried about the rising energy costs.

He said the government should look at suspending green levies, which he said were 25% of everyone's energy bill, because of the energy price cap going up in the spring.

He said that he was not suggesting to get rid of them forever, but to pause them at a time when people could really struggle.

VAT on fuel bills should be lifted for the winter in order to help households, as was suggested by Ovo Energy boss Stephen Fitzpatrick last week.

The cost of gas in wholesale markets has risen by more than 500% in less than a year, prompting other suppliers to call for government intervention.

Six million UK households will be in fuel poverty when the next increase in the energy price cap comes into force in April, according to the charity National Energy Action.

Four million homes in the UK were considered to be in fuel poverty before the price cap was raised. The number increased by half a million after prices went up.

More than 20 energy suppliers have gone out of business since September, with their customers shifting to new providers.

Many people will find a different energy deal than the one they had before.

The Resolution Foundation warned last week that millions of families in the UK will face a year of squeeze due to rising energy bills, stagnant wages and tax rises. The Bank of England expects inflation to rise by the spring.

A rise in National Insurance contributions and an expected rise in energy bills in the same month could amount to a £1,200 hit to household finances according to the Resolution Foundation.

The foundation warned that poorer families will be hit the hardest by the rises as they spend more of their income on gas and electricity.

The government has taken steps to help, including reducing the Universal Credit taper, providing cold weather payments and freezing alcohol and fuel duty.

The customer is an energy customer.
The economy of the UK.
Energy service companies.
There is natural gas.