Cost of Living Increases — House of Commons, 2022-01-24
Topic: Energy
Alan Brown (Scottish National Party, Centre-left): It is incredible that in this cost of living crisis the UK Government have done nothing and that the Chief Secretary earlier did not give us one new Treasury policy. Even when there is a chance for Tory Back Benchers to vote for a VAT holiday on energy bills, the Brexiteers dutifully voted it down In only a couple of weeks’ time, Ofgem will undertake its review of the energy price cap and is likely to confirm the April increase of about £600, a 50% increase. There is limited time for action. Tinkering at the edges, such as delaying the impact of the £2 billion administration costs of 28 energy companies going bust, is not enough. Direct Government action is needed to prevent the cap rising or to support those affected by it. In UK Government policy, the Tories have already made matters worse for those who are struggling—a cut in pensions of more than £500 per year, the removal of the £20 a week universal credit uplift—and that in the midst of the cost of living crisis, with inflation at a 30-year high and household incomes dropping in real terms by up to £1,200 National Energy Action estimates that the cap rising to £2,000 will lead to 6 million households in fuel poverty, a shocking 33% increase in only a six-month period. Worse, and shamefully, it also estimates that approximately 10,000 premature deaths a year arise from fuel poverty. How many more premature deaths will occur if the Government do not do something To date, the only direct Government intervention on energy has been the allocation of £1.7 billion for the development of Sizewell C. Not content with Hinkley Point C being the most expensive power station in the world, the Tories are determined to create another one. In their own impact assessment, they estimated costs of as much as £63 billion being added to our energy bills If people live in the Scottish highlands, they are more likely to be off the gas grid, so energy costs them more. Worse, many customers are on what are called restricted meters, so they pay about £400 more per annum for their energy, due to a 4p surcharge per unit of electricity. How is that fair? People in the highlands who export energy to the rest of the UK pay a surcharge for the privilege. It is time that the Scottish Tories stood up for their constituents on that To return to direct intervention, that can be paid for by levying a windfall tax on the Treasury. As our energy bills have increased, so has its VAT returns on them. As fuel prices have increased, the Treasury has raked in more money in fuel duty and VAT. As for the North sea, the November Budget confirmed that this year alone the Treasury would receive an extra £1.1 billion in oil and gas revenues, or £6 billion over the lifetime of the Parliament. The Treasury should release that money now. It is astounding that the Chief Secretary to the Treasury does not seem to understand that 5% of £2,000 is twice the value to the Treasury as 5% of £1,000 By contrast, in Scotland, the Scottish Government are doing their best while operating on a fixed budget with limited borrowing powers. The Scottish Government’s child winter heating assistance supports 14,000 families with disabled children through automatic payments of £200 a year. The low income winter heating assistance will help 400,000 low-income households with £50 every winter, instead of complicated cold weather payments of £25. For families there is a game-changing £20 per week child payment; compare this with the hapless £20 a week universal credit cut. It is absurd that Scotland has paid £375 billion of oil and gas revenues to the Treasury, and that this has been squandered, with no legacy. We only need to look at Norway to see what a small independent country that is in charge of its own resources can do, and I look forward to Scotland’s joining it.