Devolved governments write to Chancellor to ask for targeted support on energy crisis

Wales' finance minister Rebecca Evans is among the signatories

There are concerns about the knock on effects of the energy price cap
Author: Lauren JonesPublished 21st Sep 2022

Wales' finance minister Rebecca Evans is among those who've written a letter to Chancellor Kwasi Kwarteng asking him not to pass on the cost of an energy cap to struggling families.

The letter from the devolved governments of Wales, Scotland and northern Ireland asks for more targeted support for those hit hardest by the cost of living crisis and urges the UK government to impose a windfall tax on energy companies.

It follows the announcement from Prime Minister Liz Truss earlier this month that the price of energy would be capped at around £2,500 - rather than the previous £3,549 increase in October.

The message from Scotland's Deputy First Minister John Swinney, Welsh finance minister Rebecca Evans and Conor Murphy, Northern Ireland's finance minister, said: "We are deeply concerned at who will bear the brunt of these costs.

"Support should be funded by targeting the windfall gains in the energy sector rather than passing the cost to households through higher borrowing.

"Looking ahead to your forthcoming fiscal statement, we urge you to focus efforts on those most impacted, not just relying on blanket interventions which do not recognise the scale of hardship particular households are facing.

"An extended and targeted support package needs to be provided to help those, who, even with the cap, are facing the impossible choice between heating their homes and feeding themselves and their loved ones.

"Even with the price cap, energy costs are still double what they were last year."

The letter also emphasises the need for additional support for businesses and the third sector.

It continued: "Ministers in the devolved governments have exhausted the options available to us to address the cost crisis, stretching every pound available to us to provide support.

"The main levers that can make a difference are held by the UK Government and it must now take urgent steps to use these to provide much needed certainty to those suffering hardship and poverty."

The finance ministers also proposed a quadrilateral meeting to discuss the action required.

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