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Urgent appeal to 'cut VAT now' in crisis surrounding energy bills
2022-01-04 00:00:00.0     每日快报-英国新闻     原网页

       Industry experts and MPs have called for VAT on bills to be slashed to tackle the cost of living crisis while charity Age UK said that pensioners are facing unprecedented price rises.

       A VAT cut could provide relief of up to £100 per household if the price cap rises to £2,000, consumer experts have revealed.

       Around 20 Conservative MPs and peers have written to Prime Minister Boris Johnson and Chancellor Rishi Sunak urging them to slash the tax on energy bills and suspend the environmental levy too.

       Among those who signed the letter included former work and pensions secretary Esther McVey and MPs Craig Mackinlay, Robert Halfon and Steve Baker.

       Energy bills could rise by as much as 50 percent in the spring because of soaring wholesale gas and electricity prices.

       Adam Scorer, chief executive of National Energy Action, said the Government should use a VAT windfall to "target deeper support" for those who need it most. He added: "Energy prices are about to soar... hardship for many, but utter desperation for millions facing winter in a dangerously cold and damp home.

       "Government is negotiating a plan with energy firms to help them get through the crisis.

       "What the millions in fuel poverty want to know is, where is the plan for them?"

       Mr Scorer said that by April the cost of heating a home will have doubled in 18 months.

       He said: "It's crunch time for Government to say what it's going to do - and the silence is deafening."

       The price cap on energy bills prevents companies from immediately passing costs from rising wholesale prices on to their customers.

       The cap set by the industry regulator Ofgem has been at a record £1,277 since October 1.

       It is set to change from April when Ofgem is expected to raise the cap significantly, which will result in consumers' bills rising.

       A price cap rise to £2,000 would mark a huge 56 percent jump, with older people on low incomes at heightened risk of plunging into fuel poverty.

       Caroline Abrahams, charity director at Age UK, said: "We seem to be sleepwalking into a real national emergency for older people on low incomes.

       "Winter is about to bite and all the talk is that gas and electricity prices are going to soar, leaving the poorest pensioners worried sick about how they can possibly cope."

       Ms Abrahams said forecasted energy price rises are "in a completely different league" and "like nothing" pensioners will have seen before.

       She added: "Even scaling back on food is unlikely to be enough if the gloomiest forecasts are correct... it's not fair for older people to be in this position, through no fault of their own.

       "The ball is firmly in ministers' court and millions of older people are looking to them for help."

       Households can expect to take a "seismic" hit to their energy bills which could force some to decide whether to eat or heat their homes, according to a consumer expert.

       Martin Lewis, founder of Money Saving Expert, said the Government must intervene now to avoid a crisis in the energy market. "This year is going to be a very tough one for many people," he said. "The energy price crisis needs substantial intervention from the Government.

       "We are going to see a minimum 50 percent increase in energy prices in the system and that is unsustainable for many."

       Mr Lewis added that there needs to be greater protection for the most vulnerable, who may not be able to shop around for the best deals, or may be stuck on more expensive pre-payment options.

       He said: "What's coming in April is a seismic hit for fuel bills which is going to be astronomical.

       "The Government has been meeting the energy industry but they've not been meeting the consumer groups.

       "They have to sort this now because if we leave this it will be a disaster."

       Money worries could see almost four million households going without heating in 2022, a poll by Save the Children revealed.

       What is happening where you live? Find out by adding your postcode or visit InYourArea

       Gillian Cooper, head of energy policy at Citizens Advice, said: "Families are already weathering a tough winter, but with a huge hike to energy bills anticipated in April, this could be the tip of the iceberg.

       "Without urgent support, more people could face desperate choices between heating and eating," she added.

       "The Government must act now to prevent the cost of living crisis from escalating further."

       A Government spokesman said: "Protecting consumers is our top priority which is why our energy price cap will remain in place.

       "We are also supporting vulnerable and low-income households further through initiatives such as the £500million household support fund, warm home discount, winter fuel payments and cold weather payments.

       "Domestic fuels such as gas and electricity are also already subject to the reduced rate of 5 percent of VAT."

       -----------------

       This will coincide with increases in national insurance, council tax bills, soaring inflation, mortgage interest rate rises, rail fare hikes and personal tax allowances being frozen.

       The energy crisis means that switching utility providers is no longer an option. You can't control the price you pay for energy, but you can control how much you use.

       Small and simple changes can make a big difference in the long run.

       Here are some quick and easy ideas, many of which won't cost you a penny.

       See if you can apply for grants for home improvements such as loft and cavity wall insulation or to replace an old boiler.

       You may be entitled to the Warm Home Discount Scheme, Winter Fuel Payments and Cold Weather Payments if you are on benefits or a low income.

       Local authorities also have schemes where you can get up to £200 hardship payments which do not need to be repaid if you are really struggling.


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关键词: unprecedented price rises     pensioners     Government     living crisis     energy bills    
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