News: VAT cut more than wiped out by energy cap hike

Anti-poverty campaigners say today’s price cap increase from Ofgem shows the urgent need for a social tariff on energy bills.

Poverty Alliance chief executive Peter Kelly said: “We can’t achieve a just Scotland until everyone is able to live in a warm home that they can afford to heat. But there are nearly 750,000 households here living in fuel poverty. That’s just not right – and today’s announcement from Ofgem will make things even harder for people as winter approaches.

“This price cap hike will more than wipe out the savings that the UK Government promised from cutting VAT on electricity. It shows the urgent need for the Prime Minister to take real action by finally bringing in a social tariff for energy – making sure that people on low incomes aren’t hit with unaffordable bills.

“The Scottish Government can help too. They can make sure our Scotland’s social security payments keep pace rising with bills, build new warm homes for social rent, and invest in much more in home insulation and renewable heating.”

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