Stephen Morgan MP voted for Labour’s plan in the House of Commons today that would save families in Portsmouth at least £200 on their energy bills.
Funded by a one-off windfall tax on North Sea Oil and Gas and higher than expected tax receipts, Labour would bring in fully costed plans now to reduce the expected price rise in April – saving most households around £200 or more, but targeted extra support to squeezed middle, pensioners and the lowest earners, receiving up to £600 off bills and preventing the increase in energy bills currently expected.
It comes following the Portsmouth MP’s campaign launch last week, calling on the government to immediately remove VAT from domestic energy bills to help protect working people, as the cost-of-living crisis deepens across Portsmouth and the country.
Labour say a VAT cut on domestic energy bills – which would change the charge from 5% to zero – could have come into place as early 1st November. The tax break would be designed to support struggling families through the winter months and would be automatically deducted from their bills.
The Official Opposition also proposed in its plan that was presented to Parliament today to increase the Warm Homes Discount budget to £4bn, an additional £3.5bn, sufficient to provide a £400 Warm Home Discount to the 9.3m households who would be eligible to receive it (around a third of all households in Great Britain), as well as covering the extra administration costs (estimated at £19 per household).
The Portsmouth MP has underlined that over 10,000 working age families in his constituency of Portsmouth South – nearly half of which with children – will be affected by the government’s cut to Universal Credit, according to the Joseph Rowntree Foundation.
According to analysis from Citizens Advice, 10 per cent of families in the UK – equivalent to 3.2 million households – could be facing a financial crisis this winter.
National polling by the charity has also shown that one in five people have already cut back on their food shop (19%), or used less heating (20%) to save money, demonstrating how recent changes have left many households in a vulnerable position.
Labour has said the VAT cut would offer a helping hand when people need it most, and alongside not cancelling the Universal Credit uplift, and not hitting working people and businesses with a new jobs tax, this VAT reduction is part of the party’s plan to tackle the cost-of-living crisis.
The Member of Parliament for Portsmouth South, Stephen Morgan, commented:
“Energy bills, the weekly shop and taxes on the lowest earners are all up, but government is failing to support for Portsmouth families and keep them secure this winter.
“That’s why Labour would give families in Portsmouth security by taking fully funded measures to save most households around £200 or more, targeting extra support on top of that for the squeezed middle, pensioners and lowest earners.
“I will continue to take action in Parliament and hold Ministers to account to provide those most at risk this winter with the help they need.”
Anyone can sign up to support Stephen’s campaign and his call on Government to scrap VAT on energy bills. To do so, visit: https://www.stephenmorgan.org.uk/sign-up-scrapping-vat-on-energy-bills/
