Greens Advocate Billions for Energy Support if Bills Increase
The government should allocate billions of pounds to assist households if energy bills rise due to the Iran war, according to the Green Party leader.
In a recent speech, Zack Polanski urged ministers to prepare for a possible increase of £300 per household this year to eliminate "uncertainty" over future energy prices.
The Green Party proposes that the estimated £8.4bn cost could be financed by raising taxes on capital gains and tightening an existing tax on energy companies' profits.
Polanski's appeal comes amid competition among political parties to gain voter trust on cost of living issues ahead of multiple elections across Britain in May.
The issue of energy bills has become a significant electoral focus recently, as concerns mount that the ongoing Middle East conflict may cause prolonged disruptions to energy supplies and sustained price spikes.
In his address, the Green leader called on Labour ministers to guarantee support for billpayers if energy costs increase after June, when the price cap on household energy set by regulator Ofgem is scheduled for recalculation.
He stated that families feel "helpless" facing the global situation and asserted that the government should take measures to "insulate us from some of the worst economic effects of Trump's war."
Polanski acknowledged that the plan is "not cheap" but emphasized its necessity to prevent a "doom loop" of increased government borrowing and mortgage costs if the energy price shock leads to a sustained rise in interest rates.
'Rip Off Britain'
The Greens have not detailed how the energy bill support would be delivered but estimate the £8.4bn cost based on prices rising by up to £300 per household after the cap is adjusted.
The party suggests funding this through its policy of equalizing capital gains tax, which is levied on profits from asset sales, with income tax—a measure they believe could generate an additional £12bn annually for the Treasury.
Additionally, the Greens propose increasing the windfall tax on energy companies' profits and eliminating investment allowances they consider a "loophole" in taxation.
In other parts of his speech, Polanski highlighted the party's existing cost of living policies, including rent controls and nationalizing water companies, which he said would help "end Rip Off Britain."
He also advocated for reforming the UK's "failing fiscal rules," replacing strict borrowing and spending limits with a "panel of experts" tasked with assessing the sustainability of the UK's debt.
Energy Bill Plans
In a recent escalation of political pledges, Reform UK announced plans to abolish VAT on energy bills if elected. Similar to the Conservatives, Nigel Farage's party also intends to remove several green energy taxes.
Opposition parties have urged the government to abandon plans to phase out a 5p reduction on fuel duty introduced after Russia's full-scale invasion of Ukraine, scheduled for September.
The government has allocated £53m to assist "vulnerable" households affected by sharp increases in heating oil prices since the Iran war began, with local authorities determining eligibility.
Labour has yet to announce universal support for household energy costs comparable to the multibillion-pound scheme implemented by former Conservative Prime Minister Liz Truss in autumn 2022.
Chancellor Rachel Reeves has indicated that any support will likely target the poorest households, previously stating that the Treasury is considering "targeted options" to assist households with costs.
