Gas and Electricity Costs

Alistair Carmichael Excerpts

Tuesday 18th January 2022 Westminster Hall

[Jamie Stone]

A conversation with Rolls-Royce would be rewarding for the hon. Member. It is working up the proposals, but has some interesting thinking; I think we would be unwise not to take a good look at it.

Solutions do not stop there. Governments could soften the impact on consumers in the short term by providing loans up front to energy suppliers to cover the costs incurred from the significant rise in global wholesale prices for gas. I suggest constructively to the Minister that the Government could remove VAT from energy bills, or double and extend the warm home discount, taking £300 a year off the heating bills of around 7.5 million vulnerable households.

Her Majesty’s Government could introduce a new social tariff for those in fuel poverty—perhaps double the winter fuel allowance, giving up to £600 a year to 11.3 million elderly pensioners who currently face a £208 real-terms cut to their state pension next year, due to the Government’s decision to scrap the triple lock.

The Government could also implement a one-off windfall tax on oil and gas companies’ super-profits—the extra profits. This would not impact companies’ usual profits and thereby keep jobs secure, and would target the unprecedented extra profits that they have made in the last six months.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

Does my hon. Friend agree there is also a role for the energy companies in all this? I suspect that he will have as many constituents as I do who, over the years, in order to compensate for the lack of access to mains gas, have taken other options, including storage heating and going on to tariffs such as “total heating total control”, which is now being used by SSE to keep their customers prisoner because it is impossible for them to switch. Does he join me in calling on companies such as SSE to treat their customers, who have been loyal for generations across the highlands and islands, rather better than that?

[Jamie Stone]

I have no hesitation in joining my right hon. Friend in making that plea. His points are well made.

I hope that in getting this debate under way today, we start a dialogue with energy companies, Her Majesty’s Government and all concerned parties—not least those people who stand to be faced with crippling debts. I think of a young mother I know, who lives in the village of Balintore in my constituency. She tells me that she has to budget absolutely to balance the books; it is just a few pounds between surviving and going into the red. She says to me that if the electricity bill or the cost of diesel for her car goes up, she is in trouble. To square the books, she would then have to cut down on her expenditure. In turn, that hits the local shops, the local chemist and so on, in the seaboard villages of my constituency. I hope there will be a dialogue.

There have been, in what I have said, a lot of “coulds”, “shoulds” and “woulds”. What we really need from the Government is real, urgent action. I would suggest that they have failed millions of hard-working families and thousands of pensioners, at a time when energy bills are going through the roof. At this stage, the nation is plummeting further into a fuel poverty crisis. As far as I can see, there seem to be no plans to tackle it, but I await the Minister’s comments with great interest and expectation. At the end of the day, old people, single parents and people on very limited incomes are wondering how the heck they will get through the next period, because we all dread getting into debt.

Members from across the House have put forward suggestions to the Government on how to stop this disaster in its tracks. I respectfully suggest to Her Majesty’s Government that we stop the dither and delay, get talking, and do something about it.