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There is “absolutely no question of the lights going out this winter” and the energy price cap will remain in place despite escalating gas prices, the business secretary has said.

Kwasi Kwarteng said the cap “protects millions of consumers” and reiterated “the need for us all to prioritise consumers” during crisis talks with industry figures.

Following the talks, he told the House of Commons: ”We have sufficient capacity, and more than sufficient capacity, to meet demand and we do not expect supply emergencies to occur this winter.

“There’s absolutely no question of the lights going out or people being unable to heat their homes.

”There’ll be no three-day working weeks or a throwback to the 1970s. Such thinking is alarmist, unhelpful and completely misguided.”

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Energy boss: It’s ‘crunch time’ for many small providers

Labour’s Ed Miliband accused the government of complacency and said it had known for a long time about the issue with gas.

Mr Kwarteng added that the UK “benefits from having a diverse range of gas supply sources” and gas production in Norway will “significantly increase” from 1 October to support UK and European demand.

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Wholesale prices for gas have increased 250% since the start of the year and there has been a 70% rise since August.

Consumers are protected from sudden price hikes by the energy price cap, but this puts pressure on suppliers as they cannot pass on the increase in wholesale gas prices to customers.

The rise has been put down to a number of factors, including a cold winter leaving stocks depleted, high demand for liquefied natural gas from Asia and a drop in supplies from Russia.

Four firms have already gone bust and there are fears that others could follow suit, with energy company Bulb, which has 1.7m customers, confirming it is seeking a bailout to stay afloat.

But Mr Kwarteng said the government “will not be bailing out companies, there are no rewards for failing”.

He did not say if this applied to the big energy companies as well as the small ones.

What happens if your energy supplier goes bust?

If a supplier fails, Ofgem will ensure customers’ gas and electricity supply continues uninterrupted.

Customers will be switched to a “supplier of last resort” and any credit with the old supplier will be transferred.

If a supplier of last resort is not possible, a special administrator would be appointed by Ofgem and the government.

Your old tariff will end and the new supplier will put you on a special “deemed” contract, which will last for as long as you want it to.

The deemed contract could cost you more, as the new supplier takes on more risk (for example, possibly having to buy extra wholesale energy at short notice to supply to the new customers), but Ofgem says it will try to get the best deal for you.

You should take meter readings as you will need to pass these on to your new supplier.

Once your new supplier has been in touch, ask them to put you on their cheapest deal. Then shop around and switch if you want to. You won’t be charged exit fees.

Boris Johnson told Sky News political editor Beth Rigby, in New York, where he is for a UN climate change meeting: “I think you need to listen to what Kwasi Kwarteng has to say, he’s been working flat out with the energy companies, doing everything he can to help them.

“Clearly, their business model has been badly affected with the wholesale price massively increases, spikes in this way and loads of customers on fixed tariffs.

“We’re working very hard to find a way through, trying to keep a steady supply of gas.”

Some analysts have reportedly predicted the number of energy companies could drop by three quarters in the months to come, leaving as few as 10 still operating.

Mr Kwarteng said: “As I said, you may see more suppliers than usual exiting the market but this is not something which should be any cause for alarm.”

He added that he will be releasing a joint statement with regulator Ofgem later on Monday.

On Monday, Ofgem said British Gas will take over the 350,000 domestic customers of People’s Energy after it went bust earlier this month.

Speaking on Sunday after a meeting with Ofgem, Mr Kwarteng said “well-rehearsed plans” were in place to ensure consumers were not cut off in the event of further failures.

However, he is expected to come under pressure from the big suppliers for a major government support package to help them through the crisis.

Asked about the issue as he arrived in New York for the United Nations General Assembly, Prime Minister Boris Johnson said: “I think people should be reassured in the sense that yes there are a lot of short-term problems not just in our country, the UK, but around the world caused by gas supplies and shortages of all kinds.

“This is really a function of the world economy waking up after COVID.

“We’ve got to try and fix it as fast as we can, make sure we have the supplies we want, make sure we don’t allow the companies we rely on to go under. We’ll have to do everything we can.

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Minister: ‘Range of options’ for energy crisis

“But this will get better as the market starts to sort itself out, as the world economy gets back on its feet.”

Labour’s shadow business secretary Ed Miliband said a lack of long-term planning from the government means “we are so exposed and vulnerable as a country and it is families and businesses that are paying the price”.

He continued: “The government must take all necessary steps to ensure stability for customers and do everything in its powers to mitigate the effects of this crisis on businesses and consumers.

“Yet it is making the squeeze on household finances worse by putting up taxes for working people and cutting Universal Credit.”

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DC attorney general sues Athena Bitcoin over alleged hidden fees

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DC attorney general sues Athena Bitcoin over alleged hidden fees

DC attorney general sues Athena Bitcoin over alleged hidden fees

The attorney general for the District of Columbia, Brian Schwalb, alleges that Athena Bitcoin charged undisclosed fees and had insufficient safeguards to stop fraud and scams.

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Immigration becomes voters’ top issue for first time since Brexit

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Immigration becomes voters' top issue for first time since Brexit

Immigration and asylum is back as the top issue of public concern the first time since Brexit, according to exclusive polling for Sky News.

It overtook the economy as the number one issue facing the country in YouGov’s latest poll in May, even before the summer dominated by the migration debate.

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It is now at the highest point level of concern in over five years, since the small boats started crossing the Channel in significant numbers.

In the most recent YouGov poll, 58% picked immigration as one of the three top issues facing the country at the moment, while 51% pointed to the economy, 29% health and 22% crime.

The overwhelming majority of the public think this is because immigration is too high, with 70% saying this, 18% saying it’s about right, and 3% saying it is too low.

For decades, until very recently, successive prime ministers and chancellors have told voters that migration is a public good, but the public has not bought this argument.

Some 50% think immigration is having a negative impact on the UK, with 22% saying the benefits are equally weighed and 22% also saying that it has a positive effect.

The exclusive polling also reveals whether the public think other governments would be better at dealing with migration and small boats than Labour are.

Less than one in five – just 18% – think a Tory government would be doing much better, with 55% thinking they would be the same and 12% worse.

The more hardline approach outlined by Reform UK appears to have be noticed by the public. Some 40% think a Reform government would be handling migration and small boats better, and 26% the same, with 19% worse.

YouGov interviewed 2,268 GB adults between 31 August and 1 September.

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What’s driven UK’s astounding immigration levels – including some unprecedented highs

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What's driven UK's astounding immigration levels - including some unprecedented highs

One of the great tragedies of the way immigration policy has been debated in this country for years, if not decades, is that the conversation is mostly voiced in emotive rather than rational terms.

Those who air fears about the flows of foreign-born people into the UK are dismissed as bigots (most famously by Gordon Brown). Those who argue that immigrants are good for the economy are dismissed as being deluded or blind to a mounting crisis.

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So what’s actually going on? Well, let’s take a deep breath, try if we can to ignore all the emotions, and focus instead on the numbers. What do those numbers tell us?

Highest net migration in British history

Well, the big picture is… big. The total flows of migrants coming into the country in recent years have been nothing short of astounding. While the figures have plateaued in the past 18 months or so, as of late 2023, immigration (which is to say, people coming to live here) was running at roughly 1.3 million people a year. Subtract those emigrating in that period (roughly 400,000), and that leaves you with net migration of nearly 900,000 people.

This is such a large number it’s actually quite hard to get your head around it, but here’s one way. As a percentage of the population (it comes out at about 1.25%), this is the highest net migration this country has ever experienced, since roughly comparable records began hundreds of years ago. Indeed, I cannot find another similar episode running back to the reign of Henry VIII.

A recent anti-immigration protest in Bristol. Pic: PA
Image:
A recent anti-immigration protest in Bristol. Pic: PA

How did we get here?

It wasn’t all that long ago that David Cameron was promising to reduce net migration to the “tens of thousands” each year. So how did we get to a place where net migration was close to running into seven figures?

In large part, the answer comes back to the introduction of the new post-Brexit migration rules implemented under Boris Johnson’s government. Among these reforms were measures making it comparatively easier for non-EU nationals to get visas. There were also, perhaps even more importantly, new student visa rules making it easier to come and study in this country.

Boris Johnson's post-Brexit migration policy brought huge numbers of people to the UK. Pic: Reuters
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Boris Johnson’s post-Brexit migration policy brought huge numbers of people to the UK. Pic: Reuters

Students and government policy

The upshot is that numbers of students from countries around the world (but mostly outside the EU, led by India, China, Nigeria, and Pakistan) flowed into this country. The extent to which these visas were really quasi-working visas, enabling young workers to come into this country to work in the gig economy, is something economists and officials are still picking over even now. But what is clear is that there is nothing normal about this influx.

It’s perhaps worth underlining at this stage that this immigration – the record flows, greater than anything we’ve seen since at least Henry VIII – is nearly all legal. These are people coming into the country not illegally or on small boats or via the asylum system, but having been issued with visas by the Home Office. This was a direct result of government policy (as well as the economic incentives of coming to a country like the UK). But that raises another question: how much of this was small boats?

After all, the vast majority of coverage in papers and television news in recent weeks has fixated on the small boats. So how much of that total do they account for? In short, just under 5% of the total.

None of this is to say small boats aren’t a very big issue for the UK. But, surprising as this might sound, given how many column inches are devoted to them, they are absolutely dwarfed by the legal flows.

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Labour’s new hard stance on migration

High legal migration – but small boats still at record levels

And while the flows of legal immigration to Britain (and, for that matter, student immigration) are among the highest in the developed world, flows of asylum seekers are considerably lower than in most other countries. Britain may rank number one in the OECD on students and number two on overall immigration, but it only saw the eighth-biggest flows of asylum seekers in the most recent year for which we have data (2023).

Of the total flows into the UK in the most recent time period, small boat arrivals accounted for a mere 4.8%. The vast majority is legal migration.

But that being said, the totals coming in on small boats and into the asylum system are nonetheless at unprecedented highs. Moreover, in recent years, asylum seekers have been less likely to be removed from the country. A growing proportion have been bailed, pending their cases, with the upshot that right now the total number of asylum seekers around the UK is close to 125,000 – about the size of Cambridge.

All of which is to say, both of the following statements are true: Firstly, small boats are a tiny fraction of overall immigration, and secondly, Small boat numbers are higher than ever before and are contributing to unprecedented levels of asylum seekers in the UK.

Britain is far from the only country to face these challenges. The question now is whether it can succeed in bringing down the flows and the backlog in the coming years.

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