Minister challenged to drop £200 green levy to help Brits cope with cost of living
4 February 2022, 09:50 | Updated: 4 February 2022, 10:25
Why not drop the Green Levy?
Nick Ferrari has grilled a minister on the Government's decision to keep the green levy at a time where soaring energy prices are one of the drivers behind the skyrocketing cost of living.
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Nick said scrapping the levy would save households £200, and put the question to energy minister Greg Hands on LBC on Friday.
"Actually it's the green side of things that are the long term solution here," said Mr Hands.
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Nick challenged him, pointing out that the focus on green energy was not currently helping as the UK faces the biggest income pressure in 20 years with take home pay falling five times the amount it did during the financial crash in 2008.
"We announced the nine billion package of support yesterday to help people in the near term," said Mr Hands.
"But in the medium to long-term, the answer is to have less dependence on fossil fuels, less dependence on these volatile global gas prices that has led to the rise in energy bills, and the way to do that is home-grown, low zero-carbon electricity through renewables and nuclear."
He said new renewable technology would "produce the energy of the future".
Miliband: The govt must tax fuel companies to help families
Shadow climate secretary Ed Miliband also said the UK's reliance on fossil fuels is the reason the country is more susceptible to large variations in gas prices.
"We find ourselves in this position because there is a global crisis going on but also because over the last 10 years or so under this Government I'm afraid we haven't moved quickly enough to get off fossil fuels," he told Nick Ferrari at Breakfast,
"So we are very, very subject to the ups and downs - and it's very big ups at the moment - of what is happening in the international fossil fuel market."
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He also said there had been a "terrible failure of regulation".
"In no other country have 29 companies gone bust," he said.
"Sixty-eight pounds of the increase we saw yesterday was a direct result of that failure of regulation."
When Nick asked about scrapping the green levy, Mr Miliband said: "We can't do that."
He said 40 per cent of the UK's energy comes from renewables, which was enabled by the green levy, although he said there was a "legitimate debate" about the source of the money.
"But frankly just saying 'let's just abolish all of this' is not the answer," he said.
"It's not the reason why prices have gone up."
'Now I'm being told I can be lent my own money over five years... It's ridiculous.'
On Thursday Ofgem confirmed they were hiking the energy price cap by a massive 54 per cent, meaning millions of Brits could see their annual bills rise by around £700.
It prompted the Chancellor Rishi Sunak to announce a number of measures to help families cope financially.
But the plans have been called "puny" by some.
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Labour former minister Chris Bryant told the Commons £350 in support for households to help mitigate rocketing energy prices "does not even touch it".
The MP for Rhondda said: "I know the Chancellor is all pumped up but this is pretty puny stuff to be honest - £350 isn't going to touch the sides of the problem for my constituents in Rhondda.
"Gas and electricity up for the average family in my constituency by £686. Fuel up by £314. The average weekly shop up by £385. Universal Credit cut by £1,040. National Insurance up by £150 and frozen tax allowances by him will cost another £300. That's £2875 in a constituency where the average wage is £27,000.
"That's really going to cause hardships; £350 does not even touch it."
