Sir John Major has asked that there should be emergency tax implemented on the profits of the top energy firms. The news comes after energy price rises, which have accumulated to more than 10% and are being deemed “unacceptable”.
The former Prime Minister explains how the government could earn back “the cost of extra winter fuel payments through a one-off tax”. The current government has no such plan to do so, however, they find the idea interesting. MPs under the coalition have dismissed Labour’s pledge for a price freeze, explaining how it is a con and wouldn’t work; instead they are urging consumers to switch suppliers.
“I do not see how it can be in any way acceptable that with energy prices rising broadly 4% in terms of costs that the price to the consumer should rise by the 9-10% that we are hearing.” (Energy live News)
Sir John Major said how the level of these price rises is not acceptable and it would therefore be reasonable for the government to impose his idea of a one off tax to replenish the costs of cold weather payments.
Cold weather payments are activated when the temperature drops to a certain level for a long period of time. Customers who are on income support receive £25 if temperatures fall to or below zero degrees for seven days.
The energy market is failing and the government may have to increase the amount of assistance they provide to people if the weather turns. If this turns out to be the case then a one off tax should be considered given the extremity of energy firms profits.
For help on switching energy providers visit www.energyswitcheroo.com to see how much you can save.