Think tank calls for £6bn energy package

The New Economics Foundation urges Chancellor John Healey to spend £6bn on energy support at the Budget to protect households from anticipated price rises.

Government's current plan: expand existing discount

The chancellor is reportedly considering spending £1bn to boost the Warm Home Discount, raising it from £150 to as much as £300 for qualifying households on means-tested benefits.

NEF proposes universal energy guarantee

The think tank recommends capping essential energy for every household at late two thousand twenty-four prices, cutting electricity costs by twenty-five percent and gas by forty percent from January.

Potential savings for households

Combined with the expanded Warm Home Discount, the NEF package could save an average £290 for households receiving benefits from January, and £190 for all others.

How to fund the £6bn package

The NEF says the £6bn cost could be paid for entirely through a windfall tax on banks or a commitment to reform capital gains tax.

Energy crisis driven by global conflict

Forecasters predict a major rise in January as the US-Iran conflict hits energy costs worldwide. EDF predicts Ofgem's price cap could rise by as much as £442, a twenty-five percent increase.

“millions once again risk being forced to choose between heating and eating early next year”