- The New Economics Foundation (NEF) proposes that the UK government subsidise 'essential energy' for every household, covering hot water, heating two rooms, and key appliances.
- This scheme, estimated to cost £4.5 billion, would be funded by increased tax revenues from soaring North Sea oil and gas profits, driven by high oil prices due to the Middle East conflict.
- The NEF's 'essential energy guarantee' aims to save all households £163 annually and reduce the energy bills of the poorest families by 17 per cent.
- Under the proposal, essential energy would be frozen at current price cap rates, with households paying market rates for consumption above this threshold, encouraging richer households to reduce usage.
- Dr Alex Chapman of the NEF highlighted the need to protect households from rising energy costs and tax companies profiting significantly from the current situation.
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