Having moved to Peebles in 2002, ‘Stooriefit’ Bosco Santimano gives us his own take on what he feels is the hot topic of the day. This week it’s higher energy bills, the end of furlough and removal of the £20 top-up to Universal Credit, a triple whammy, as millions of families will struggle financially this winter having to choose between feeding themselves or keeping warm!
From 1st October over 15 million people could be waking up to a massive increase in their energy bills with the announcement that the energy cap on some deals will be increasing by £139 per year. This is happening due to a combination of factors including Brexit and a rise in wholesale gas prices by more than 50% since the beginning of the year. Cheap energy deals are disappearing and becoming a rarity in the open market putting huge financial strains on low-income families and pensioners. The good news is that we can still reduce our bills as the price cap applies to certain energy deals like standard, default and out-of-contract tariff. Basically, they all mean the same thing i.e., if you have haven’t switched your energy supplier in a while or took no action when your last fixed deal ended, then you will be one of those that will be impacted by the price rise. Global prices of fossil fuels are rising, especially gas due to Covid-19 and a longer winter last year also meant that refiling of gas stores was delayed. Since some of our electricity is generated from gas, this means electricity prices are affected too. Energy companies are not obliged to increase their prices to match the new cap but big energy firms will do so in order to keep shareholders happy.
Add the removal of the £20 per week top-up to Universal Credit and the end of furlough and we are heading into a perfect storm brought about by polices of the Westminster (Tory) government which the Scottish government (SNP & Greens) have no control over. The worst hit will be those on prepayment meters. These are like pay as you go i.e., top up as you go along and are mostly used by low-income groups. Prepayment customers are charged more for each unit of energy than people on standard credit meters. In fact, the cheapest prepaid tariffs (£1,052, according to Ofgem) was found to be over £200 more expensive than the cheapest direct debit tariff (£846) in August 2019. Prepayment meter tariffs are also covered by the price cap. These are set to rise by even more. If you’ve chosen a fixed deal (one that has a set contract length) then you won’t be affected by the price cap changes. Housing charity Shelter estimates that nearly half a million private tenants are in arrears and this figure has doubled since the pandemic. Private renters spend more of their income on housing than any other housing tenure. Social housing is scarce and not readily available to fill the gap. The outdated Local Housing Allowance Rates needs a major overhaul as is not fit for purpose e.g., Scottish Borders is allocated a maximum of £74.79 per week rent (£324.09 per month). This is fine if you live in some remote parts of the Borders and in social housing but not in Peebles or the surrounding areas including Innerleithen. A private one-bedroom flat for rent in Peebles is around £450+. Which planet do these politicians live on, definitely not the same as us mere mortals?
We are going to witness a winter of discontent across the country if the Westminster Tory government does not get its act together and remove policy’s that impact the majority of the citizens of this country. Here is hoping that the four nations can keep themselves warm and well fed this coming winter.
Published in The Peeblesshire News on Friday 20th August 2021.