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Rising energy price crisis
The energy crisis: Is the government doing enough?
With energy prices and other household bills soaring, we take a look at whether the government are doing enough to help those most in need. By DANNY BALL
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With the energy price cap rising as well as general energy prices, this is bound to effect families up and down the country.
With this MNL is asking, are the government doing enough to support working families in the Liverpool city region? The energy price cap is rising from £1,277 to £1,971 for someone on typical usage per year.
This is in the same week that national insurance will rise by 12% and the threshold for student loan repayments will be frozen. This all comes when inflation is rising and wages have stagnated for the past decade. It is a combination that has caused hardship among many working-class families who were also hit hard by Covid. Young families and young people are a group of people that are being hit surprisingly hard by the rise in energy bills.
MNL spoke to Matthew Mitchell, a young dad from Prescot, about the worry of bills and his concerns for the future due to the costs of living. He said: “I don’t have a house of my own yet and that’s part of the problem, I’m having to contribute more and more to where I am living now and by the time I’m done paying I don’t have much money left to save towards a place of my own.”
He added: “When I get there (and own a place of my own) how easy it is going to be to live in comfort without the worry of bills increasing constantly. Especially with a young son I need that stability.”
Matthew was also critical of the government on several fronts: “The government really aren’t doing enough to help families, especially young ones.
“I work incredibly hard but my wages are staying the same. Like, what am I supposed to do when prices are rising? I am able to keep my head above water but so many families aren’t.
“Then for young people it’s so hard to get a house because there are so few of them, the government are not doing enough, I feel like we are being left behind to be honest.”
When asked if being a relatively young father had made him think about the future more and the effect this period could have on the next generation, Matthew told MNL: “It’s a worry, we don’t seem to be heading in the right direction as a country, we have had COVID which was horrible, and it might feel different soon but in the short term I don’t know if I trust anyone to get us out this mess.
Itry to stay positive and, in a few years, when my son is older I hope that we have sorted ourselves out as a country!”
The government have introduced multiple measures to try and combat rising energy prices this included a total of £350 to help families adjust to rising energy prices.
Chancellor Rishi Sunak told the BBC: ““I really believe that what we’re doing, £350, it’s a significant amount of money that will make a big difference to the vast majority of households, and I think people, I hope actually, will be reassured by us stepping in.”
However, only £150 will arrive to those in need by the time energy prices rise in April.
Another criticism of the £200 rebate is that it is essentially a loan that will have to be paid back by taxpayers.
Shadow chancellor Rachel Reeves described the rebate as a “Buy now pay later scheme that loads up costs for tomorrow”, as it is due to be paid back over a five-year period.
In opposition to such policy by the government the Labour party have proposed cutting the 5% VAT rate on energy bills from April - this has been steadfastly rejected by the government.
The suggestion of a windfall tax on energy companies, which has also been supported by the Lib Dems has also been rejected by the government.
