Mike Foster, CEO of the Energy and Utilities Alliance, says:

“Now we know the impact of the global energy crisis upon the average consumer, a price cap increase of £693 to £1971 a year. Millions more households will now be thrown into fuel poverty, through no fault of their own and that unenviable choice, between heating and eating will become the reality for more in our communities.

“It would be churlish to ignore the Government’s response, any help is better than none. But using council tax to rebate bill increases seems a very blunt instrument, which fails to take into account actual household incomes but does reflect 1991 house values. I fear the distribution of this rebate will not be fair and many winners will not be the low paid.

“The proposed loan to energy companies to keep bills £200 lower now, but to be paid back later, is a stunt designed to appear to help. It is a heat now, pay later scheme that simply delays the pain not reduce it.

“But the fundamental root cause of the problem has not been addressed in today’s announcement. How does the UK shift away from global fossil fuel prices? We now need a firm commitment from the Government to wean us off natural gas and onto hydrogen, which we can produce ourselves, and convert our world-class gas network to run on hydrogen. That way, Putin will not hold us hostage, with his fingers turning the gas taps off, jacking up prices and forcing UK households to choose between heating and eating.”