Labour's plan to beat energy bill hikes with one-off windfall tax on North Sea oil and gas producers
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Labour confirmed that its plans to keep energy bills low would benefit all 2.5 million households in Scotland – including all off-grid households as equally as others.
In order to tackle the impact of the cost of living crisis, Labour recently announced it would bring in fully-funded measures to reduce the expected price rise to energy bills in April – saving most households around £200 or more – but targeted extra support to squeezed middle and low earners along with pensioners, receiving up to £600 off bills and preventing all of the increase in energy bills currently expected.
They would pay for this with a "one-off windfall tax on North Sea Oil and Gas producers" who have profited from price rises.
Labour has confirmed that all 2.5 million households in Scotland will benefit from the plan – including all 417,000 homes off the gas grid and the 215,000 households who use heating fuels other than from the gas and electricity grid. Those off-grid households will benefit by up to £600.
Highlands and Islands Regional Labour MSP Rhoda Grant said: “This initiative is very welcome and I’m delighted to see it will also help with off gas grid homes. In the Highlands and Islands, there are many homes that are off-grid and they have been let down by Government initiatives that are aimed at tackling climate change.
“Off-grid homes are often occupied by pensioners or those who have low incomes, these homes are also likely to be less energy efficient which means those who live in them are more likely to be in fuel poverty so I’m glad to see Labour taking action to tackle this.”
Shadow Chancellor of the Exchequer, Rachel Reeves said: “Working families in Scotland are already feeling the cost of living crisis bite.
“But the triple whammy of an imminent rise in the energy price cap, real wages falling and tax rises coming down the tracks are going to make this crisis even worse. I am pleased to confirm that Labour's energy policy would help all 2.5 million houses in Scotland, including all households off-grid.
“The Conservatives could bring in a VAT cut on home energy bills immediately if they wanted to do – it’s immediate, automatic, and would help households across our country feeling the crunch, especially pensioners and those on lower incomes. It is not enough just to oppose this corrupt Tory government, we need to replace them - across the UK only Labour can do that.”
Shadow Secretary of State for Scotland, Ian Murray MP said: “Labour’s fully-funded plan to save Scots on their energy bills is just one example of the transformative change a Labour government would have in Scotland and across the UK.
“Communities which have been left behind by the SNP and the Tories face struggling infrastructure and now, rising household bills. While the SNP is focusing on another referendum, and the Tories fight amongst themselves, we would help every household in Scotland with their bills. That is the difference Labour can make in power.
“The SNP is right to oppose Boris Johnson and the Tories – but Labour can do so much more than oppose them, we can replace them altogether.”
