Boris Johnson says ‘pipeline of cash’ on way but big decisions will have to wait
Lame duck Prime Minister Boris Johnson today said a “pipeline of cash” is on its way to help hard-up Brits through the autumn and winter – but admitted big decisions would wait until after he’s gone.
This morning regulator Ofgem announced the energy price cap would rise to an eye-watering £3,549 – a rise it is feared will plunge millions of Brits into poverty and could cost thousands of lives.
The government has come under fire over its failure to respond to the crisis, and ministers have yet to unveil any fresh measures in light of today’s bleak announcement.
Although some measures have previously been pledged by the government – before the scale of the current crisis became clear – Mr Johnson told reporters today that it would be down to his successor to draw up a further response.
Charities warn this is not good enough, however, and action needs to be put in place now.
Leadership favourite Liz Truss has said there will be an emergency budget if she wins the race for No10 – but she has not been drawn on what support she will offer.
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Mr Johnson said this morning: “Of course we could see this coming, that’s why we put the steps in place that we already have.
“Although there will be more announcements coming next month, you shouldn’t forget the pipeline of cash stretching out throughout the autumn.”
He said that eight million people at most risk will receive an additional £650, while in November pensioners will be given £300 and £150 of support is on the way for people entitled to disability benefits.
Mr Johnson continued: “There’s a pipeline of cash coming through the next few months, but that’s clearly going to be augmented by extra cash that the government is plainly going to be announcing in September.”
Throughout her leadership campaign, Ms Truss has repeatedly dismissed direct support, claiming that she doesn’t support “handouts”.
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But it is clear her economic plan, which focuses on tax cuts, will do precious little to help those most in need, and her rival Rishi Sunak warns that it could drive millions into destitution.
There are mounting calls for the government to act faster.
Today Peter Matejic, chief analyst at the Joseph Rowntree Foundation, said: “The Government devised its support package based on a previous energy price forecast made obsolete by today’s extraordinary announcement.
“With the price cap very likely to increase significantly and forecast to remain high well throughout next year, our analysis shows it is a sheer fantasy to think struggling families can pay these stratospheric energy bills without further Government intervention on a significant scale.”
He added: “It is impossible to think a care worker or a shop assistant will have to scramble to find hundreds more pounds to pay for their heating or that the entirety of someone’s income for a whole year will be less than their energy bill. But that’s what these figures suggest will be the case unless significant further steps are taken quickly.
“Ministers have a choice about who shoulders most of the burden – families, businesses or the public finances. Whoever occupies number 10 next will be remembered for who they protect – they must make sure energy doesn’t become a luxury only the wealthy can afford.”
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Labour’s shadow chancellor Rachel Reeves said: “Today’s announcement will strike fear in the heart of many families, and force many to make unthinkable choices this winter.
“The Tories now face an urgent choice. They can carry on letting oil and gas companies make huge profits whilst every family suffers with bills rising this winter.
“Or they can act now and stop the energy price cap rising, by bringing in a windfall tax on those oil and gas profits.
“People deserve a government that can meet the scale of this national emergency – not this spectacle of a Tory leadership race or a Prime Minister that put his out of office on months ago.”
Chancellor Nadhim Zahawi said the increase in the energy price cap would cause “stress and anxiety” for people, but that the Government was working “flat out” to develop more options to support households.
“While Putin is driving up energy prices in revenge for our support of Ukraine’s brave struggle for freedom, I am working flat out to develop options for further support,” he said.
“This will mean the incoming prime minister can hit the ground running and deliver support to those who need it most, as soon as possible.”
