The UK Is Now Paying Its Citizens Energy Bills?
The UK's new Prime Minister has a plan that would help to pay its residents energy bills.
This article is more than 2 years old
As the weather starts to turn and we head into winter, many of us are preparing for heightened energy bills due to a higher demand for appliance use. Stoves and ovens tend to kick into overdrive during the cold months, and various forms of heaters start to heat our homes. Even in typical years, this adds up and can be burdensome for some families. But this is no typical year. Britain and much of Europe are experiencing jaw-dropping increases in their energy bills. Consumers are getting increasingly concerned about how they will pay for those bills. Now, at least in Britain, there may be a solution. Newly elected Prime Minister Liz Truss just announced news of a new plan to help the country’s citizens.
Liz Truss took over as Prime Minister a few short days ago, but she is already making huge waves. She unveiled a sweeping new energy plan yesterday that could change everything for the average British household. It contains a lot of big ideas. But the one captivating the nation (and the news) the most is her plan to address energy bills.
The proposed energy plan would be effective for two years and cap annual household energy bills at £2,500. Additionally, some businesses would be eligible for similar assistance. However, the helping hand extended to them would only apply for six months and require additional steps.
Proponents of Truss’s plan say this will lift a huge burden British households face in the coming months. It will be of particular importance to struggling families. Without it, their high energy bills may require them to choose between food and heat. So, according to the Economist, “extreme circumstances call for extreme measures.” And this plan most definitely meets that description.
Due to the extreme nature of the new energy plan, it faces criticism from skeptics. Chief among the complaints is the sheer cost, which will be footed by the British government. The estimates start at roughly £150bn, but could rapidly grow higher than that. And where will that money go? The energy companies themselves will receive the lion’s share. Per the plan, the British government would pay for the difference between wholesale energy costs and what citizens pay for their energy bills.
Even with that assistance, some in Britain will still face a winter with little or insufficient heat for their homes. This fact leads to another criticism of Truss’s plan – that it is neither detailed nor targeted at the most vulnerable population. And with global inflation and recession on the horizon, more people fall into that category than in years past. Many may still struggle to pay their energy bills, even with the government’s help.
Given the significant amount of money Truss plans to pour into this plan, many have sought news about how she plans to pay for it. The new PM soundly refused to implement a windfall tax on oil and gas companies, which would have covered at least part of the investment. Instead, she plans to borrow money, leading to additional concerns about the country’s state of debt. But Truss firmly believes that helping her citizens with their energy bills is worth whatever cost it brings to the nation.
