Following the news that the energy price cap will rise by an average of £693 in April, Luke has called for the government to provide more comprehensive support to people in Plymouth and across the country.
Luke is backing Labour’s calls for a windfall tax on the North Sea oil and gas companies, whose profits have rocketed during the pandemic, to fund greater financial support for families. The plan would save households an additional £200 on their energy bills, rising to a £600 saving for low earners and pensioners. Labour’s plan would also double the number of households eligible for the warm homes discount, and remove VAT from household energy bills for twelve months.
Luke criticised the government’s plan, a loan scheme, which he says will leave families with larger energy bills for the next five years.
The massive hike is energy bills at the very time as energy companies are announcing huge profits is sickening. Rising interest rates, higher taxes and higher energy bills means even more families on low, fixed and middle incomes will struggle to make ends meet. A third of children in Plymouth already live in poverty and the hike in energy bills will push more families into debt and desperation.
Labour has a fully costed plan to cut VAT on energy bills and target support at working families paid for by a windfall tax on surging profits from energy companies. But all the government can offer is a compulsory loan to cut bills this year that families will have to repay in future years. The government has run out of ideas – and Britain deserves better.