September 30, 2022
UK energy bill boycott benefits don’t pay traction, truss to give relief

The UK’s Don’t Pay movement aims to gather 1 million supporters who will cancel their direct debit payments to energy companies in the form of bills in October.

Rob Pinney | Getty Images News | Getty Images

LONDON – A petition to boycott energy bill payments is gaining ground in the UK as the country faces the worst livelihood crisis in a generation.

By Tuesday, ground level don’t pay movement has racked up more than 170,000 signatories who have pledged to cancel their direct debit payments to energy companies on October 1, when household bills are skyrocketing.

Campaign organizers say supporters will enforce their pledge if a total of one million signatures are made before the October deadline.

Calling the agitation irresponsible, the government warned that late payments could cost consumers even more money.

The Do Not Pay movement did not immediately respond to CNBC’s request for comment. However, in a statement on its website, it said the campaign is designed to gain temporary “leverage” and encourage government support. It also said that people on prepayment meters should not participate as their power supply may be cut.

Bill to increase by 80%

End Fuel Poverty Coalition estimates that this year 12 million households (42%) in the UK will face fuel shortageBroadly defined as the inability to adequately heat or cool one’s homes.

Indeed, in a recent study, the campaign group found that UK homeowners will now need to earn a minimum of £62,686 ($72,000) to avoid fuel stress this winter – three of the £20,586 figure for October 2019 fold.

“The public is struggling to keep warm this winter and we need to see more emergency funding for people this winter, funding to help cut their bills with better insulation, and expensive gas.” increasingly away from and on to cheaper, renewable energy,” said a spokesperson for the End Fuel Poverty Coalition.

“Without immediate government action, the impact of rising levels of fuel poverty on our nation will be profound and devastating,”

UK truce to announce relief measures

Britain’s incoming Prime Minister Liz Truss is now under pressure to announce new energy relief measures – and fast.

In the hours following Truss’s victory on Monday, the number of signatories to the Do Not Pay campaign rose to nearly 10,000.

The government earlier in May announced a £15 billion package of measures, including a £400 waiver on all energy bills. However, activists have argued that more support is needed as prices continue to rise.

Truss, for her part, has said she will announce new endorsements within a week of taking office, although, as of now, she has been short on details. Reports following his appointment on Monday suggest the measures could cost up to £100 billion, including freezing the price limit for average homes at £1,971.

Market analysts say this winter could go some way to easing bill payments for Britons, while potentially helping prevent it. Britain’s skyrocketing 10.1% inflation rate.

“Such a price freeze would make a big difference to inflation,” Berenberg Bank chief economist Holger Schmeeding wrote in a research note on Tuesday, predicting that it could reduce inflation by 3% in the fourth quarter of 2022.

However, he added that price pressures in any major handouts could moderately continue “long thereafter”.

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