The energy crisis is set to continue for several more years, and sticking plaster solutions so far have left too many in pain. Millions are suffering every day – unable to afford even the basics like hot water, heating, and cooking, with energy debt is piling up.

An energy system that causes so much pain is one that is not fit for purpose.

There is no need for this continued pain. The solutions are at our finger tips for a just and redistributive energy system that promotes decarbonisation at the same time.

I have tabled New Clause 36 as an amendment to the Energy Bill, which would introduce a National Energy Guarantee, in the form of a rising block tariff. It is based on a proposal from the New Economics Foundation (NEF) which would provide all households with a free or low-cost allocation of energy, with a
premium price band for high usage.

The NEF proposal aims to keep essential energy use (enough for cooking, lighting, washing, keeping warm and charging a device) priced at no more than 50% of pre-crisis levels, or around 1% of average household disposable income after housing costs.

NEF’s modelling shows that the proposal would leave 80% of households better off, with  the poorest gaining most, and most of those losing out being among the wealthiest. As suggested by NEF, the amendment also includes provision for additional allowances for households with unavoidably high energy use, such as those with disabled residents; and an increased electricity allowance for electricity-only households.

Read more about the National Energy Guarantee.