Cut energy bills in April and tax the oil and gas bosses' bonus bonanza
The Conservatives’ plan to hike energy bills in April will come as a hammer blow to families already struggling with soaring mortgages and rents, shopping bills and tax rises.
That's why Liberal Democrat Leader Ed Davey is demanding the Chancellor cancels plans to hike the average household energy bill by £500 in April, and cuts people’s bills instead. This would be combined with a new energy support package for businesses, schools and hospitals.
Rishi Sunak must act now to save families from a cost-of-living cliff edge, by cutting energy bills instead of increasing them.
Ed Davey
Instead of the Conservatives’ plan to hike the energy price guarantee by £500, the Liberal Democrats want to scrap the bill hike and reduce the average energy bill to £1,971 - the level it was last April. This would save the average household an estimated £400 on their energy bills over the next 12 months.
For the least well-off households, the Liberal Democrats want extra targeted support, including doubling the Warm Homes Discount to £300.
We also calling on the government to U-turn on its plans to slash energy bill support for businesses, schools and hospitals by 85%, and instead extend current levels of support for another six months.
If there’s no extra energy help for businesses, it will be more than salad and vegetables in short supply as firms as well as farms are forced to close.
Ed Davey
Taxing the oil barons' bonus bonanza
The Liberal Democrat plan would mostly be funded through money already budgeted for energy support, but now unspent due to falling energy prices.
Additional funds would be raised by a proper windfall tax on the record profits of oil and gas companies, including scrapping the fossil fuel investment loophole and raising the rate of the windfall tax from 35% to 40%. This could raise at least £15 billion more than the government’s current Energy Profits Levy.
On top of their windfall tax plan, the Liberal Democrats are now calling for a one-off tax on oil and gas bosses making millions from sky-high energy bills, similar to the bankers’ bonus tax in 2009-10.
The latest figures show top executives at BP and Shell got £17 million in salary, bonuses and pensions in just one year. The chief executive of BP received bonuses and benefits of almost £3 million last year, doubling his total annual pay.
To add insult to injury, it’s just obscene that Rishi Sunak is happy for energy bosses to rake in millions of pounds in a bonus bonanza, while families struggle to put food on the table or heat their homes.
Ed Davey
People deserve a fair deal - with a large cut to their energy bills, paid for by a proper windfall tax and a one-off levy on the bonuses of oil and gas bosses.
Cut energy bills
Back the Liberal Democrats' campaign to cut energy bills this April.