'Government must act': Hackney MP calls for windfall tax to tackle energy bills crisis

Adjusting the thermostat in a 'green energy' home under the government's 'Energy Company Obligation'

MP Meg Hillier is calling for the government to implement a one-off windtax on North Sea oil and gas producers - Credit: PA Archive/PA Images

A Hackney MP is calling on the government to support hard hit Hackney families struggling with rising energy bills.

Dame Meg Hillier, MP for Hackney South and Shoreditch, is highlighting Labour’s proposal for a windfall tax on North Sea oil and gas producers, who have profited from price rises.

Research and consultancy group Wood Mackenzie analysis says UK gas and oil operators made around $17 billion in cash flows last year. 

They are set to make record profits this year (£18bn), not seen since before the 2008 financial crash.

Ms Hillier said: “Families and businesses in Hackney are facing an energy price crisis because of a decade of dither, delay, and poor planning of Britain’s energy sector by this government.

“The government must act to stop bills from rising and support Hackney families facing a cost-of-living crisis.

“It’s vital extra support is targeted at pensioners and the lowest earners.”

Meg Hillier MP for Hackney South and Shoreditch.

Meg Hillier MP for Hackney South and Shoreditch. - Credit: Richard Townshend Photography

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The one-off windfall tax would raise cash to keep energy bills low and, according to the Labour Party proposal, it would save Hackney households around £200 or more.

The tax would help reduce the expected price hike in energy bills in April and, as part of a wider package of measures announced by Labour, expand and increase the Warm Homes Discount Scheme.

This would save 28,945 households in Hackney South and Shoreditch up to £600 off bills in total. 

An additional 30,288 households in Hackney North and Stoke Newington would also be supported in the plans, meaning a total of 59,233 Hackney households could potentially benefit from the measures. 

In response, a government spokesperson said: “The Energy Price Cap is currently insulating millions of consumers from high global gas prices. We’ll continue to listen to consumers and businesses on how to manage the costs of energy.

“We recognise people are facing pressures with the cost of living, which is why we are providing support worth around £12bn this financial year and next."

They added that support for vulnerable households is available through initiatives such as the £500 million Household Support Fund, Warm Home Discount, Winter Fuel Payments and Cold Weather Payments.