Grantham MP pleased with support for energy users

As annual energy bills are expected to soar to over £4,000 next year, and many people worry about how they will heat their homes this winter — Grantham’s MP said he is pleased with the support being offered by the Government so far.

Energy bills for a typical household could hit £4,266 next year, experts warned. The higher estimate means the average household would be paying £550 a month, instead of £164 a month currently.

In May, a £400 energy bill support was announced which was calculated on the basis of Ofgem’s prediciton at the time that the price cap was likely to rise to £2,800, but experts now believe this will be higher. Cornwall Insight expects this to rise to £3,582 a year, compared to the regulator’s prediction of £2,800 a year.

More than half of households (55%) say the £400 government energy bill support is not enough to get through this winter, with the price cap now predicted to hit £3,500 in October, according to research by Uswitch.com.

Gareth Davies, MP for Grantham and Stamford, told The Lincolnite: “I know this is an incredibly difficult time for many families across the county. Inflation is the enemy that makes everyone poorer and that’s why I am pleased the government is providing significant support to help households with the cost of living at this time.

“All households will automatically receive £400 over six months, starting from October. Low and middle-income households have also benefited from an increase in National Insurance Contribution thresholds, with the first £12,570 a person earns now completely tax free – this is worth an extra £330 a year to the typical worker.

“The minimum wage has also risen to £9.50 an hour. A further £650 payment is available to those in receipt of benefits, while pensioners who normally receive Winter Fuel Payments will receive up to an additional £300 this year.

“This is significant support, targeted to those with the greatest need, but the government will continue to review and respond to the situation as it develops. In doing so, it is important that support continues to be carefully considered and well targeted. Otherwise, inflation could become embedded and cause high prices to persist.”

Former Chancellor Rishi Sunak or Foreign Secretary Liz Truss will be named as Conservative Party leader on September 5 — ten days after the new level of the energy price cap is announced on August 26.