Sturgeon: ‘Every penny’ from bills rebate will go towards easing cost of living

Nicola Sturgeon has pledged that “every single penny” of additional money Scotland receives from energy bill and council tax rebates will be used to support people with the cost of living crisis.

Scotland’s First Minister was asked about the decision by energy regulator Ofgem to hike the price cap to a record £1,971 for a typical household, with bills expected to rise by £693 per year from the beginning of April.

Chancellor Rishi Sunak announced that all households will get a £200 discount on bills from October, but that will have to be repaid over five years.

Homes in England will also get a £150 council tax rebate for properties in bands A-D.

The UK Government estimates that devolved governments in Scotland, Wales and Northern Ireland are expected to receive approximately £565 million of Barnett funding as a result of the council tax rebate.

Speaking at First Minister’s Questions, Ms Sturgeon said: “I’ve not heard all of the detail because he was still on the seat as I came into the chamber, but the Chancellor has just announced what sounded like welcome steps to help mitigate [the rising price cap] but steps that, in my view, do not go far enough.

“They seem to offer around £350 of help against energy bill increases of around £700.

“I also don’t yet know what the position on consequentials will be, but I give a commitment here that – assuming there are consequences, which I would expect there to be – every single penny of them will go in Scotland to helping people deal with the cost of living crisis.”

Scottish Labour leader Anas Sarwar challenged Ms Sturgeon to back proposals for a one-off windfall tax on the profits being made by oil and gas companies, following news that Shell has announced profits of more than 19 billion US dollars (£14 billion).

Mr Sarwar criticised SNP MPs who voted against proposals for a windfall tax in the Commons on Tuesday, and said: “This is a Government that would rather play politics with the cost of living crisis rather than take the action using the powers they have; a Government lacking ambition and failing to use this Parliament; a Government that stands with energy companies making £27,000 a minute and not with people struggling to pay their bills.

“They have refused to use the powers of this Parliament to prop-up winter fuel payments, they have refused to back Labour’s proposals on a windfall tax on energy companies, and they have refused to stop rises to rail fares and water charges.”

Ms Sturgeon replied: “I am not opposed to oil and gas companies making a contribution because their profits are rising.

“I am not opposed to that, I’m simply saying these approaches should be fair and equitable. That is the point I’m making, and I’m also making the basic point that I don’t have the power over that.

“We’ve actually acted ahead of other governments to try to deal with the cost of living crisis, and particularly the energy cost crisis.

“The Winter Support Fund that we have recently established – £41 million in total – [including] £10 million to help people are struggling to pay fuel bills, including access to top-up vouchers, better support for those in remote and rural areas, £6 million for third-sector partners so that they can directly support low-income families, and £25 million of flexible funding to help local authorities support people in financial insecurity.”

Following the Chancellor’s announcement, Scottish Conservative finance spokeswoman Liz Smith said: “Rishi Sunak and the UK Government have taken a big step toward tackling the cost of living crisis with these measures. Now the SNP must act urgently.

“The new money for Scotland must be passed on to local councils and the tax cut matched pound for pound.

“The SNP has no excuse to avoid passing on this funding boost from the UK Government to working people across Scotland.”