MSP blasts private energy firm 'subsidies'
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A NORTH-east MSP has blasted the UK government for using the welfare state to “subsidise private energy companies through welfare claimants”.
This comes after the government’s cap on energy prices, which sets the maximum amount that energy suppliers can charge customers on a default tariff, will raise energy bills for millions of homes in Scotland to almost £2000 a year from April.
It was first introduced by the industry regulator, Ofgem, in early 2019 after the government called for a tool that could put an end to rip-off energy tariffs, and is calculated every six months to reflect the fair costs of supplying gas and electricity.
The boss of energy giant SSE also hit out at a “misconstrued” notion of what is causing the current energy crisis, saying more wind farms would have reduced the price of energy bills.
Banffshire and Buchan Coast MSP MSP Karen Adam said: “People can’t afford their bills as it is with the current cost of living crisis.
"I am seriously concerned about how this is going to impact those who are already living month to month. As a minimum, the UK government needs to substantially increase welfare for claimants, otherwise, any increase in welfare will be eaten by the rising cost in energy bills. Effectively meaning, the welfare state is being used to subsidise private energy companies through welfare claimants.
“The UK government recently cut Universal Credit so people are really struggling again. Energy prices and the cost of living is on the up, meanwhile, billionaire [Chancellor of the Exchequer] Rishi Sunak is writing off billions of pounds worth of debt owed by wealthy fraudsters.
“Some campaigners are asking for a six per cent increase in welfare just to buffer the effects of energy price hikes, even that is still not enough. What is annoying about that fact is, if there is a welfare increase, it won’t be getting put straight into the pockets of those who need it. It’ll be in one hand and straight into the pockets of these private energy companies.
"Once again public money is subsidising private companies who benefit from enormous profits."
However, Moray MP and Scottish Conservative Party leader Douglas Ross challenged the Scottish Government to use some of its powers to mitigate the situation many low income families found themselves in.
He commented: “As usual the SNP are happy to complain, but show little appetite to use the powers they have to improve the lives of people here in Scotland.
“Karen Adam’s complains about the welfare system, but her SNP colleagues returned powers over welfare to the UK government as they were deemed too complex for the Scottish Government to deliver.
“These are difficult times and I strongly believe both our governments have to work together to deliver for people in Moray and across Scotland. However, It seems instead of rising to this challenge, the SNP would simply prefer to score party political points.”
