Government urged to ditch ‘postcode lottery’ for energy bills

Households in different regions are charged nearly £100 more a year for the same amount of gas and electricity, according to a new study

Ministers have been urged to scrap the ‘postcode lottery” for energy bills that divide the society based on where someone lives.

Customers living in different parts of the UK are paying over £100 a year for the same electricity and gas consumption.

New analysis by the Liberal Democrats suggests households in North Wales and Merseyside face the highest costs, an estimated £126 more for the same amount of electricity and gas than the North East, where people pay the least.

The authors of the report also note that households in the South West are charged almost £109 more while those in London pay £97.59 extra.

That comes just a few days after the announcement of the new price cap that will see bills increased by £693 from April.

In a recent interview, Business Secretary Kwasi Kwarteng said that the price cap could shield customers from global price increases but maybe the government could not protect families 100% from this global trend. 

Liberal Democrat Leader Sir Ed Davey said: “It is grossly unfair that at a time millions are facing eye-watering increases to their energy bills, some people are paying more based simply on where they live.”

A HM Treasury spokesperson told ELN: “We understand that people are concerned about pressures on household budgets which is why the Chancellor announced a £9 billion package to protect millions of households against the impact of rising global energy prices.

“These progressive measures are targeted to the people who really need it. On top of this, we are providing support worth around £12 billion this financial year and next to help families with the cost of living.

“We are cutting the Universal Credit taper to make sure work pays, freezing alcohol and fuel duties to keep costs down and providing targeted support to help households with their energy bills.

“We are also raising the National Living Wage to £9.50 per hour from April, meaning people working full time on the National Living Wage will see a £1,000 increase in their annual earnings.”

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