As households face the largest energy bills increase in history of 54%, MP Sarah Green says ‘it beggars belief’ that the Government should raise National Insurance at the same time.
Energy regulator, Ofgem, has lifted the cap on default tariffs to £1,971, meaning the average household in Buckinghamshire will pay £693 more a year for gas and electricity.
Last week the Government confirmed National Insurance contributions will rise by 1.25% - from 12% to 13.25%, equating to the average worker paying £255 extra each year.
While economists predict that the combined hikes will drive millions into fuel poverty for the first time, the MP for Chesham and Amersham, Sarah Green said: “The impending rise in the cost of heating would be devastating at the best of times. It beggars belief that this Government plans to whack people with a National Insurance hike at the same time."
In an attempt to soften the blow, the Treasury is offering households a one-off £200 discount on their energy bills this October but this must be paid back in £40 instalments each year over the next five years.
There will also be a £150 rebate on council tax bills from April.
The Liberal Democrats warned that Chancellor Rishi Sunak's proposals to deal with soaring energy bills will just be "spreading the pain over the coming years" while clobbering local families with tax hikes.
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