Carmichael calls for ‘bold action’ from Government to halt energy price rise

The typical household energy bill is set to rise by around 80 per cent after energy regulator Ofgem announced that energy price cap was to rise to £3,459 from October.

And it could be set to get worse after energy consultancy firm Cornwall Insight has suggested that a typical annual bill could hit nearly £5,400 in January, and £6,600 in April, representing a £550-a-month bill.

The announcement has led Orkney and Shetland MP, Alistair Carmichael, to call on the UK Government to block the coming October rise to prevent a “cataclysmic hit to family finances”.

The announcement comes amid a broader cost-of-living crisis, with food and other prices soaring and taxes and interest rates going up.

Mr Carmichael said: “The new figure for the price cap is roughly what had been predicted in recent days but it still represents a massive shock to the system and to families already struggling with their bills. A near-£1,600 increase — not far off doubling the cap — will put the median household into fuel poverty across this country. That is a cataclysmic hit to family finances and the government must respond.”

Despite the severity of the news, no Conservative ministers were available for the news broadcast round this morning, and a government policy response has largely been put on hold pending the result of the Conservative leadership contest in September.

Orkney’s MP continued: “It is unconscionable that there is not a single minister out on the airwaves this morning to talk about the price cap rise. This is an entire Government skipping school because they forgot to do their homework. People across the UK are crying out for some leadership and they are not getting it from the Conservatives.

“Life does not go on hold just because the Tories are having an internal bun fight. The only response that meets the scale of the challenge would be to follow the Liberal Democrat plan of stopping the price rise before it happens. That is no small feat but we need bold action now to give families reassurance and stability going into the winter. We cannot wait any longer.”