Energy price cap reaction from BEIS Committee Chair Darren Jones

In response to today’s announcement regarding the energy price cap that will apply from 1 October, Chair of the Business, Energy and Industrial Strategy Committee, Darren Jones MP, said:

“With energy prices continuing to skyrocket, the next prime minister will have to deliver significant amounts of financial support to households and businesses, similar to help offered during the Covid pandemic.

Many businesses will face bankruptcy because there is no price cap on their energy bills. The scale of the challenge will mean that the next chancellor will have to offer business grants and not just temporary tax and business rate cuts.

Whilst my preference has been to target support to those who need it the most, the sheer number of households needing help justifies a rapid and broader response from government.

In addition to immediate financial support, the Government must finally bring forward a national programme of home insulation works so that bill payers won’t need to use as much heating to keep their homes warm in winter. This is both an urgent and permanent solution and ministers need to stop causing unnecessary delays.

Once prices have stabilised, my Committee urges ministers to look at creating a social tariff for energy that would mean lower bills for vulnerable households.”