Tag: Conservative party

Good Law Project To Sue Ofgem

I’m a bit late publishing this my apologies.

I wish the Good Law Project every success. Ofgem have acted terribly and have failed in their duty to protect the consumer and to file important reports that should have been submitted before their announcement last week.

Good Law Project To Sue Ofgem

I’m a bit late publishing this my apologies.

I wish the Good Law Project every success. Ofgem have acted terribly and have failed in their duty to protect the consumer and to file important reports that should have been submitted before their announcement last week.

Good Law Project To Sue Ofgem

I’m a bit late publishing this my apologies.

I wish the Good Law Project every success. Ofgem have acted terribly and have failed in their duty to protect the consumer and to file important reports that should have been submitted before their announcement last week.

Good Law Project To Sue Ofgem

I’m a bit late publishing this my apologies.

I wish the Good Law Project every success. Ofgem have acted terribly and have failed in their duty to protect the consumer and to file important reports that should have been submitted before their announcement last week.

Good Law Project To Sue Ofgem

I’m a bit late publishing this my apologies.

I wish the Good Law Project every success. Ofgem have acted terribly and have failed in their duty to protect the consumer and to file important reports that should have been submitted before their announcement last week.

Good Law Project To Sue Ofgem

I’m a bit late publishing this my apologies.

I wish the Good Law Project every success. Ofgem have acted terribly and have failed in their duty to protect the consumer and to file important reports that should have been submitted before their announcement last week.

Good Law Project To Sue Ofgem

I’m a bit late publishing this my apologies.

I wish the Good Law Project every success. Ofgem have acted terribly and have failed in their duty to protect the consumer and to file important reports that should have been submitted before their announcement last week.

Good Law Project To Sue Ofgem

I’m a bit late publishing this my apologies.

I wish the Good Law Project every success. Ofgem have acted terribly and have failed in their duty to protect the consumer and to file important reports that should have been submitted before their announcement last week.

Energy Price Increases- How Are Pre-Payment Customers Going To Pay?

Annual energy bills are predicted to increase more £4,200 from January 2023. This will undoubtably cause extreme hardship on an enormous scale.

So far without a fully functioning government, Johnson, his ministers and prospective prime minister candidates are refusing to meet to discuss and implement a strategy and further government financial without government intervention.

No further government assistance offered.

Instead of meeting to discuss further plans and financial help conservative ministers are on holiday blissful in their knowledge that without intervention their actions will cause unseen suffering and worse.

Further price increases.

The consultancy Cornwall Insight have already predicted that energy price caps are expected to reach £4,266 a year for the first three months of 2023.

They also predict that energy bills could rise to £4,426 in April before eventually easing.

Also predicted a week ago by the consultancy the energy price cap was expected to rise to £3,600 a year from January 2023.

It is now predicted that the energy cap will increase to £3,582 from October, an increase of £200 on its last forecast. It expects bills to begin easing next summer, to £3,810 in the third quarter and then £3,781 in the final three months of next year.

Compared to the price cap in October 2021 which was£1,400 a year, these price increases are obscene and totally avoidable.

People can’t afford to pay.

The reality is that there are already thousands of people that were already unable to meet every day household expenses, many of which are living in substandard housing, are homeless and living in temporary accommodation or renting a room or property at already extortionate prices.

There’s absolutely no way that anyone living in this situation will be able to cut costs anywhere to be able to pay for energy on top of food costs.

Whilst the idea of the don’t pay campaigns that have been created is on paper a good idea in real life it’s more complicated than that.

The problem with pre-payment meters.

Most people forced to live on extremely low incomes are already tied into pre-payment meters provided by the energy companies.

As well as having to automatically pay a daily standing charge they don’t have the option not to pay or to default on payments.

To put it simply if they don’t pay their energy supplies are cut off leaving them unable to heat and light their homes and to have any quality of life at all.

For those that pay their bills by direct debit, defaulting on their payments could affect their credit rating even if they pay a reduced amount.

Energy companies could also class them as bad payers and this could result in obtaining credit extremely hard.

It’s going to be a cold winter.

What on earth are people reliant upon pre payment meters going to do? They can’t magic money out of nowhere like the government does when they want to give tax breaks to their pals.

Their only option will be to use coats, bedding and just about anything they can find to keep warm whilst putting their health at risk.

Not forgetting that most people claiming social security will already be receiving a reduced amount due to various debts being garnished from their payments and benefit sanctions.

The poorest cannot be ignored anymore.

Alongside other campaigns the plight of the poorest and most vulnerable needs to be prioritized and help needs to be offered to everyone that require assistance.

Warm banks aren’t the answer nor is finding a warm spot to sit all day. It’s totally unrealistic to believe that this is the answer. At the very best they’re a sticking plaster that keeps falling off.

Government payments.

Everyone dependent on a low income is already well aware that the payments promised by the government offer little help when compared to the actual increase in energy and cost of living increases.

For these payments to realistically help they now need to increase dramatically for it to even start to chip away at the damage caused by the ever increasing energy costs.

The poorest are already suffering.

Food Banks are already experiencing a downturn in donations, some of them having no food and unable to offer any help to people dependant upon them.

There is also an ever increasing amount of people unable to afford to travel to food banks. For various reasons including and exceeding disability, illness and public transport costs they’re unable to collect desperately needed food. At the same time charities and organisations are unable to offer any kind of delivery service.

Their plight will be ignored

I suspect that the plight of the poorest will be ignored by those in power. After all their more concerned with punishing the poor than helping everyone that needs their assistance and correcting their mistakes.

The UK is a broken country, a ticking time bomb ready to explode. The only thing we do know is that the government won’t be there to pick up the pieces.

They don’t care they never have.

We must continue to press the government to reduce the obscene energy increases.

Instead of settling for ideas such as warm banks we need to make our voices heard.

It’s totally unacceptable that people are going to be forced into such extreme poverty that many may not survive the cold, harsh winter.

It really doesn’t have to be this way.

Please share my blog it really helps to raise awareness and shows solidarity to those suffering at the hands of this cruel government.

I receive no payment for any of the work that I do and for my campaign.

If you can afford to and would like to donate to keep both going there’s a donation link at the top and side of this blog post.

Every penny helps me to continue with both.

A huge thank you to everyone that has and does support my campaign and blog. I really appreciate it and I couldn’t do it without you.

UK Interest Rates Biggest Hike In 27 years. Inflation Rates Highest Since 1980

The Bank of England has announced its largest interest rate rise in almost 30 years. The UK now faces soaring inflation rates and cost of living expenses.

The Bank of England has warned that this will result in the UK economy being plunged into a recession for more than a year this autumn as the rising energy prices push inflation above 13%.

The Bank also forecasts that the combined five quarters of economic contraction, a 5% fall in real-terms living standards, and increased interest rates by 0.5 percentage points will result in the largest single inflation rate rise in 28 years.

The Bank’s baseline forecast is also forecasting the GDP (Gross Domestic Product) to fall by 1.25% in 2023 and 0.25% in 2024. This will show the first example of two years of annual economic contraction since the 1960s.

The Bank’s Monetary Policy committee voted 8-1 to increase the base rate to 1.75% as an attempt to prevent the inflationary impact of soaring energy prices being compounded by domestic price and wage pressures. 

The interest rate increase will add around £650 to annual mortgage repayments for those with an average tracker mortgage. Monthly tracker repayments for homeowners have been increasing since interest rates began rising from 0.1% last December (2021) at around £170.

This relentlessly cruel inflation rate which now is going to be the highest since September 1980, is being driven by the ever increasing cost of wholesale gas on the international markets. This has doubled since May and is now on course to treble domestic energy bills.

This is a cost that the poorest and most vulnerable will not be able to meet.

The Bank also believes that the domestic energy price cap is expected to reach £3,500 per household in October. This will push the inflation rate to peak at 13.3% in the fourth quarter of this year and is also expected to remain above 10% until the middle of next year. 

However the Inflation rates are also forecasted to fall back slightly to 9.5% in the third quarter and 5.5% by the end of the 2023.

The domestic energy price cap is sadly expected to increase again when the energy regulator Ofgem will review the costs in January. The MPC (Marginal Propensity to Consume) believes that the inflationary impact will be offset by falls in other areas. It has also said that the goods price inflation costs may have peaked but commodity prices are already beginning to fall back.

Real living standards are forecasted to fall by 1.5% this year and 2.25% next year, with a 5% decline. This includes the direct government support payments of at least £400 per-bill payer. These payments don’t even scratch the surface of the real life devastating impact of increasing energy costs that less well off people are already facing.

A five-quarter recession which will end in the first quarter of 2024 would be very similar in length to the financial downturns of 2007-08 and also the early 1990s and early 1980s. However this won’t be as deep as the previous financial crisis with a predicted decline in GDP of 2.1%.

The Bank’s Monetary Policy Committee have also stated that the ever increasing energy prices are responsible for the majority of the rise in inflation, but also keep in mind the continued COVID supply chain disruption is still playing a significant factor in rising costs.

The MPC is also forecasting that wages will rise by 6% this year but has also warned that as the recession starts to take hold unemployment will probably begin to rise next year from the current 3.8% sending it to peak at 5.5%.

The explanation given by the MPC is as follows: “The United Kingdom is now projected to enter a recession from the fourth quarter of this year. Real household post-tax income is projected to fall sharply in 2022 and 2023 while consumption turns negative.”

“The labour market remains tight, and domestic cost and price pressures are elevated. There is a risk that a longer period of externally generated price inflation will lead to more enduring domestic price and wage pressures.

“In view of these considerations, the Committee voted to increase the Bank Rate by 0.5 percentage points, to 1.75%.”

Personal finance expert Gemma Godfrey is quoted as saying on Sky News

“The Bank of England had a “tough challenge” when it came to trying to control inflation and it was a “war on all fronts”.

She said: “The Bank of England has a really tough challenge where they’re trying to control inflation, but they don’t want to tip us into recession. 

“So what we’ve been hearing for the past few months is that our economy has been slowing down. We’re not spending as much. Companies aren’t selling as much. And that obviously risks jobs. 

“But obviously, everybody is aware that our everyday living costs are rising. They’re set to rise by more than five times as much as the target the Bank of England sets.

“And it’s a war on all fronts, it’s food, it’s energy, people are really struggling. So the Bank of England will try and increase rates to try and slow this down.

“But there’s calls that they’ve been too slow or they’re being too aggressive. It’s a very tough balancing act for the many millions of families around the UK.”

Responding to the Bank of England’s announcement today, Labours shadow chancellor Ms Reeves said Tory leadership candidates were “touring the country” and announcing unworkable policies that would not help people get through the cost of living crisis. 

She said: “This is further proof that the Conservatives have lost control of the economy, with skyrocketing inflation set to continue, while mortgage and borrowing rates continue to rise. 

“Labour would help households right now by removing the tax breaks that are subsidising oil and gas producers and using that money to help people now, including by cutting VAT on energy bills.”

Meanwhile The Labour Party have failed to commit to lowering energy costs.

Conservative former chancellor Ken Clarke has warned of a “very unpleasant” winter for many households in the country.

Lord Clarke of Nottingham told the BBC: “Nothing is certain, but I’ve thought for some time we faced the risk of an extremely serious recession.”

“This winter is certainly going to be very unpleasant for many households in the country and I think it’s absolutely inevitable the Bank of England acted as it did.”

“I’d have been rather alarmed if they hadn’t put it up by at least 0.5%. I think the Monetary Policy Committee probably considered 0.75%… but decided in the present circumstances that that was too fast.

“They’ve taken the right decision and they’re going to have to do it again as the year goes on.”

Meanwhile this leaves the average person facing spiralling cost of living expenses and dramatically increasing energy costs whilst receiving little or no adequate financial help or support.

Without adequate financial help the UK will undoubtably face thousands of vulnerable people suffering or worse as the poorest always pay the highest cost for these increasing prices.

Action needs to be taken now to prevent these possible deaths by tackling OFGEM and their refusal to challenge the energy companies.

There isn’t a person with compassion that can think that it’s ok for energy companies to profit in such a manner whilst people face a long, bleak winter with no sight of help or relief.

However with the Conservative Party and probable future prime minister Liz Truss at the helm of the country, they will undoubtably find a way to profit from this situation whilst ignoring the scale of the energy and cost of living crisis that the UK is facing.