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Saturday, December 2, 2023

Double-Whammy Hit to Households With Price Cap and Interest Rate Changes

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The SNP has warned of a ‘double-whammy’ hit to households in the coming months after changes to interest rates and the energy price cap were announced today.  

Ofgem confirmed today that the energy price cap, which limits how much energy companies can charge households, will now be updated quarterly, as opposed to the current rate of twice a year, to keep up with the rising costs. 

The energy price cap rose by 54% in April to £1,971, with further rises in October set to hike bills to just under £3,500 a year.

Ofgem’s announcement was also followed by an announcement from the Bank of England that interest rates would increase by half a percentage point, the biggest rise for 27 years.

The SNP’s Depute Westminster Leader, Kirsten Oswald MP, said the announcements spelled disaster for households already left reeling from sky-high energy bills and the Tory cost of living crisis, and called for urgent action to address households economic fears.

Commenting, Kirsten Oswald MP said:

“These announcements spell disaster for the tens of millions of households who’ve already watched in horror as changes to the price cap have seen their bills rise by over 50%, with more massive rises expected in the coming months.

“This double-whammy hit will only exacerbate the economic fears households have, with wages stagnating and the prices of goods and services rapidly rising across the board.

“It’s no coincidence that the UK is one of the hardest hit countries in terms of energy bills – we’re facing a Tory-made cost of living crisis that the Conservatives have been too mired in sleaze and scandal to sort out.

“With these changes we’ll see households struggle even more, with savings obliterated and incomes threatened by a looming recession – this will undoubtedly be a grim time for millions, we need real action and leadership.

“With every day that passes without action from the UK government, more households are forced into making the tough decision over whether to heat their homes or put food on the table.

“That is scandalous in the 21st century.

“It begs the question what exactly will finally shame the Tories into action?

“So far it seems absolutely nothing, showing once again why Scotland desperately needs to escape Tory rule with the full powers of independence.”

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