The Chancellor responds to call for energy price freeze
The Chancellor Nadhim Zahawi tell us he is "taking no options off the table" but appears to favour a more targeted approach
The Chancellor has "hesitation" about cancelling the next rise in the energy price cap, and freezing bills.
Nadhim Zahawi has told Northsound 1 News that he favours a more targeted approach to tackling the cost of living crisis.
Yesterday the First Minister joined Scottish Power in calling for prices to be frozen, potentially for up to two years.
There have been warnings that the average amount UK households pay for their gas and electricity could reach £6,000 next year, while the energy price cap - which limits the amount domestic customers have to pay - is expected to rise to more than £3,500 from October, with an announcement due on Friday.
On a visit to Edinburgh today (August 24th) the Chancellor told us:
"I think having a package that is not targeted, is a mistake.
"Because it would mean people like myself will be receiving that help, when actually wealthier families don't really need it.
"We need to focus on those families who really do need it or those small businesses that really do I need it."
Zahawi laid much of the blame for the rise in costs at the feet of Russian President Vladimir Putin, saying:
"Putin is using energy as a way of getting back at us for the help that we put in to Ukraine.
"I think it's a sticking plaster, dare I say if we just freeze bills across and could be very costly if Putin decides he's going to keep using energy as a tool of getting back at us for 12-18 months."
Nicola Sturgeon has said there is "No time to waste" in tackling this issue, and today SNP Westminster Leader Ian Blackford has written to Boris Johnson demanding an "urgent recall of Parliament".
Speaking after a special summit, which brought together some of the main energy companies with consumer organisations and others, Ms Sturgeon issued another call for action.
She said: "There is no time to wait for the outcome of a Tory leadership election.
"If the Chancellor wants to give good news to people in Scotland and good news to people across the UK tomorrow, then say that the next increase in energy bills is not going to go ahead, and give some relief to people who are desperately worried about what lies ahead."
"Effectively, we're calling for an energy bills freeze, and then an arrangement to be put in place to fund that over a much longer period of time to alleviate the pressure on individuals, to bear down on inflation and the parallel to reform the energy market to avoid situations like this in future," she said.