AIBU to worry about a U-turn on the energy price cap?

[DahliaMacNamara]

I have no idea if they can or would do this. If someone can explain why it would never happen, that'll make it a nice short thread. Anyone?

Martin Lewis: we hope that this charge will mean that the BoE will help to stop interest rates going up as quickly and as steeply as were feared.

He also is advocating for other steps to protect mortage owners too.

Bloody there is enough wind energy been generated on here to keep us all toasty

@AdoraBell I know how you feel. I am a carer for the disabled and what most people don't realise is that they're only one major accident or serious health condition away from disability and let's not forget that people are born disabled too.
Are those people meant to be left to die because a few healthy, selfish buggers don't want to pay taxes.

It won't stop shortages BUT it should help reduce them.

Martin Lewis pretty much said, that whats happened was a necessary step that was broadly needed, but other steps will be needed.

Thank you for your valuable contribution to the thread. I hope OP is calmed by your erudite comment.

Oh ffs get a bloody life.

Oh, if only my own household could run on hot air and verbal flatulence. My troubles would be over.

People can take out private pensions and income protection insurance. We could fund private health, education, pension education and contribute toward emergency services if tax's were cut to a sustainable level.

Studies show that countries that do this it works out costing more for citizens.

I'm worried that the 'targeted support' will be done on Council tax band again. We're band E so just missed out on the previous rebate. Our house is only 20 years old so not entirely sure how it was banded and although it does have four beds, it's a terraced townhouse so smaller and a lot cheaper than eg a semi or detached four-bed.

And our household income is £65k (in the SE) so although not low-income, very much middling.

Band E is over £88k house, so anything targeted below this is aimed at those in a pretty low income.

General Election, NOW! Every step is a misstep with this rabble.
Interest rates will still be sky high, the damage has been done, and now people don't even have the reassurance of capped energy for 2 years, which was the only saving grace and the only thing useless Liz could bleat on about in every interview.

Unpaid carer and lone parent to disabled adult son who can't work here - just how poor would you like us to be?

Part of the problem is that it’s not always generators who make money - often to get funding they have to hedge their production sales contracts to guarantee a fixed return. If trades are physical (selling forward at fixed prices) it’s the buyer that’s making money and if trades are financial (selling forward at spot prices and hedging with banks) it’s banks making the money.

So totally depends on a generators hedging strategy making windfall taxes a pretty blunt tool themselves. The profit can be in lots of places.

The fact that the government u-turned just shows the essential nature of backing up budgets with concrete funding. Clearly, the OBR couldn’t support Truss’ policies so it wasn’t a timing thing, it was a viability thing. Hence, I think she’ll have to go. It’s one thing having a vision and delaying the funding side to work through the complexity. It’s another thing have a vision and not having even thought about the funding side.

It's houses priced at £88k in 1991 I think... And our house wasn't built then. It's a very archaic system...

@hattie43 probably says the person who can afford significant coat increases. They put that in place to stop 80% of households going into fuel poverty. 80%, of which a significant chunk may now go into it just as the damage on mortgages has already been done.

I agree too, very practical sensible idea.

The universal cap was a measure that would bring down inflation. The obsession over insulation etc is a distraction, how does roof insulation make it cheaper to use my oven?

Targeted help typically means a cliff-edge in support and there will be many who will be thousands of pounds better off than someone who earns £1 more than them.

We've been done over with the council tax banding, so missed out on the help yet houses that are in the same area (down different streets) are benefiting.

Cost is only one metric. Value and quality also count.

You don't say if you have a mortgage.

I think the middle are the ones who are right to be most worried by this. However by April we are into Spring, so in theory its a can kicked to next winter. Targeted support is an argument for another day.

A lot can happen before then. A year is a long time to start working on addressing energy insecurity. Hopefully prices will stabilise somewhat, though probably will stay at higher rates than they have previously been - the era of cheap energy is arguably over.

In the meantime this SHOULD calm inflation and cost of living pressures elsewhere (including interest rates).

I think its very much a wait and see scenario for the squeezed middle. There isn't a medium term answer to your question just yet.

Yep, totally agree and same.

I think there will be some support, but I get that the uncertainty as to how much or if you get it will worry and concern many people. Energy charges are almost unique amongst utility bills in that you don't see the bill before you consume/buy.

@RedToothBrush just want to thank you for your thorough and level headed response, I was ready to reel but am slightly reassured.

I suspect we may fare badly, we have a good household income but high mortgage, the energy cap was a big reassurance to us, so does feel slightly back to square one with uncertainty, but if it helps stop mortgage rates spiralling it'll help us in the end.

Probably be the same sort of person who puts inverted commas around the word disabled and thinks neurodiversity is overdiagnosed.

To answer the question, they want you to be far, far poorer than them as they consider you (and me) a lower form of life.

Yes, we do have a (20-year) mortgage, though we are fortunate to have been able to fix it a few months ago before the biggest interest rises so okay on that front.

Thanks, I guess it is a case of wait and see.. But I don't like the uncertainty 😬

The energy cap without a windfall tax was never tenable