Hunt: Households must slash energy use to defeat Putin
HOUSEHOLDS will have to cut their energy consumption to prevent the UK being blackmailed by Vladimir Putin, Jeremy Hunt said last night.
The Chancellor wants people to reduce their energy consumption by 15 per cent in order to see off the threat from Russia.
And warning that universal help with bills would end before the next election, Mr Hunt said people would have to ‘take responsibility for their energy bills’ as the Treasury could not extend support indefinitely if gas prices remain high.
At last week’s Autumn Statement, Mr Hunt cut the universal support that will peg average bills to £2,500 this winter.
From next April, the average will rise to £3,000 for the following 12 months.
Treasury sources have suggested that a separate universal payment of £400, which is helping to reduce bills this winter, will not be repeated, leaving millions worse off by £900 on average.
But Mr Hunt yesterday suggested even this help would end in 2024, regardless of the level of energy prices. Only low-income
‘National mission not to be blackmailed’
families and pensioners are likely to continue receiving help beyond then.
He told the Commons Treasury committee: ‘We are saying to people that in the end everyone is going to have to take responsibility for their energy bills and they’re going to have to think about how they reduce their energy consumption.
‘Because it is a national mission to make sure that we can’t be blackmailed by people like Putin when they do things that interrupt international energy supplies.’
Former prime minister Liz Truss said the energy price ‘guarantee’ would last for two years and cap average bills at £2,500 when it started last month.
But Mr Hunt moved to scale it back because of fears it left the public finances exposed to extreme volatility in global energy prices.
Despite pouring huge subsidies into energy bills, Miss Truss resisted calls to urge the public to reduce consumption, with sources describing the idea as a ‘nanny state’ intervention.
But the Government has now published advice on turning down radiators and sealing up draughty doors and windows – with a major campaign on energy conservation expected to follow.
Mr Hunt said: ‘We’re going need everyone to help us crack this problem if we’re not going to have a huge additional burden on taxpayers which ultimately will lead to the kind of high taxes I certainly don’t believe are desirable in the long run.
‘We will always be there to help poorer households, the way we do that will change.
‘But for most people we need you to play your part in reducing our energy dependency on what
Putin chooses to do in Ukraine. That’s why we’ve got this national ambition to reduce energy consumption by 15 per cent.’
He added: ‘We think that the £500 that we’re offering to help people save next year, at current gas prices, if people do the 15 per cent, they could save that £500 themselves in the amount they pay in the years that follow.
‘So we’re trying to help people to help themselves. We’re giving them a cushion this year and next. But we do need people to change their behaviour.’
Energy experts Cornwall Insight last night predicted that the total cost of the energy price guarantee was now likely to reach £42billion over 18 months.
By comparison, the Covid furlough scheme cost the taxpayer £70billion.
Cornwall Insight said regulator Ofgem was likely to raise the notional price cap to £4,245 from January, but said it was likely to fall back to £3,921 from April.
The cap is set to remain above the £3,000 level set by Mr Hunt throughout next year, meaning all households will benefit from the energy price guarantee.
The Chancellor said that ministers were also moving to shore up the UK’s domestic energy supplies, with new nuclear capacity a priority.