Budget 2023: Energy price cap extended, government confirms, ahead of Jeremy Hunt’s first budget
The government has announced it will keep its cap on energy prices for a further three months as part of Jeremy Hunt’s first full budget.
The Energy Price Guarantee (EPG) – which limits the unit cost of gas and electricity that people pay – had been expected to rise to £3,000 next month, meaning another hike in household bills.
But just hours before the chancellor was due to deliver his statement to Parliament, the Treasury confirmed the figure would now remain at £2,500 until June, saying the typical home would save £160 on energy bills as a result.
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Hunt extends energy price cap as budget measures revealed early
Prime Minister Rishi Sunak said the extension of the EPG – which is thought will cost £3bn – would “give people some peace of mind”.
Mr Hunt added: “With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
However, the energy bills support scheme, which saw households getting around £66 taken off their bills each month, will still come to an end in March.
Labour’s shadow chief secretary to the Treasury, Pat McFadden, welcomed the announcement, saying his party had been calling for it for some time.
“I don’t mind if we lead the way as long as they do the right thing,” he told Sky News. “And I think it’s important to do that because the cost of living crisis has not gone away.
“People are really struggling to pay their bills and as things stood, those bills were scheduled to go up another £500 a year in a couple of weeks time, so I think it’s right to extend that guarantee.”
But his colleague, shadow climate secretary Ed Miliband, criticised the government for “refusing to implement a proper windfall tax to make the oil and gas giants pay their fair share”, adding: “That means they are leaving billions on the table that could be used to help families with the cost of living.”
Read more:
What to look out for in Hunt’s first budget
The SNP’s economy spokesman, Stewart Hosie, also said the policies did not go far enough, calling the chancellor “truly pathetic” for not keeping the energy bills support scheme.
“With energy companies making record profits, and the wholesale price of gas falling, there is no excuse for this shameful Tory decision, which will hammer household incomes and push even more families into poverty, hardship and debt,” he added.
And the Liberal Democrats echoed his criticism with a call for further bill cuts.
Their economic spokeswoman, Sarah Olney, said: “Instead of a sticking plaster for another three months, we need meaningful action now.”
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Treasury committee chair expects some ‘generous measures’ in budget
The move is the latest early reveal from Mr Hunt’s budget, with the chancellor expected to detail his plans in full from 12.30pm – after Prime Minister’s Questions.
Sky News also understands he will promise to provide 30 hours of childcare a week to parents of one and two-year-olds – at a cost of £4bn for the Treasury – and give a further cash injection to the sector to increase the availability of existing free childcare for three to four-year-olds.
But Labour MP Stella Creasy said the policy was “economically illiterate” as it would “stoke up demand without producing the supply“.
She told Sky News: “I welcome the fact that childcare now on the political agenda.
“But I really worry this announcement, if it’s not backed up with the money needed to actually properly fund these places and properly expand the places – bear in mind that half of local authorities tell us they don’t have the places they need at the moment to meet demand – then this government could end up crashing the childcare system just as they crashed the economy.”
Plans are also being considered to loosen staff-to-child ratios for two-year-olds, which could make the cost of childcare a little cheaper – though some in the sector have warned against it, saying it could undermine the quality of care.
Ms Creasy said: “I would love to have a conversation with the chancellor after he spent a day looking after five two-year-olds on his own all day, because I think most parents and indeed most providers wouldn’t think that was a good idea.”
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Greening: Childcare funding ‘good news’ for parents
The policies fit into what is expected to be the wider theme of the budget – encouraging people back to work.
In that vein, Mr Hunt is expected to raise the lifetime allowance for pension savings from £1m to £1.8m – a record level – and could also lift the annual tax-free allowance for pensions from £40,000 to £60,000 to incentivise professionals out of retirement.
There could also be changes to aid long-term sick, disabled people and benefit claimants to return to work.
But there could be upset from some of his own backbenchers as the chancellor is not expected to meet Tory demands for tax cuts, and will keep the planned rise in corporation tax from 19p to 25p.
However, former Conservative chancellor Lord Lamont warned against a rebellion, saying Mr Hunt had “done a good job” to “restore confidence” in the economy after Liz Truss’ disastrous mini-budget last year sent the markets into turmoil.
He told Sky News: “I think it’s very important that that is not disturbed by people being unhappy about no tax cuts today.
“I don’t think there are going to be tax cuts today. I don’t think there should be tax cuts today. I don’t think you’re going to [have] tax cuts when you have 10% inflation.
“You only deal with inflation by slowing in a controlled way. The economy dies. So it’s not the day or the time for tax cuts.”
During his speech, Mr Hunt is expected to reference the “difficult decisions” taken to stabilise the markets following the so-called mini-budget – the event that saw him brought in to reverse policies and calm the markets.
“Today, we deliver the next part of our plan: a budget for growth,” Mr Hunt will say.
“Not just growth from emerging out of a downturn. But long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people… all whilst making our country one of the most prosperous in the world.”
UK
More than 500 people arrested after Palestine Action protest – with almost half aged 60 and above
The number of people arrested after a protest in London on Saturday supporting banned group Palestine Action has risen to 532, police have said.
Around half of them (259) were aged 60 and above – including almost 100 people who were in their 70s.
Some 522 arrests were for displaying a placard in support of a proscribed organisation contrary to Section 13 of the Terrorism Act 2000, according to the Metropolitan Police.
As of 9pm on Saturday, the number was put at 466.
Membership of, or support for, Palestine Action is a criminal offence punishable by up to 14 years in prison under the Terrorism Act.
A rally supporting Palestine Action in Parliament Square. Pic: Reuters
One of the arrests took place as the Palestine Coalition march formed in Russell Square, while 521 were at the protest in Parliament Square.
Of those arrested, the biggest number (147) was in the 60-69 age group, while 97 people were aged between 70 and 79, and 15 others were between 80-89.
Six were aged 17-19, sixty-five were in the 20-29 age group, 55 were aged 30-39, 45 were aged 40-49 and 89 were in the 50-59 age group.
The average age of those arrested was 54, while some 263 of those arrested were male, 261 were female and eight either defined themselves as non-binary or did not disclose their gender.
Among the arrests, six were for assaults on officers (none were seriously injured), one was for “obstructing a constable in the execution of his/her duty”, two were for breaching Section 14 Public Order Act conditions, and one was for a racially aggravated public order offence.
People attend the protest in central London. Pic: PA
Hundreds of people attended Saturday’s demonstration in Parliament Square, organised by Defend Our Juries, with the Metropolitan Police warning it would arrest anyone expressing support for Palestine Action.
Anyone who was arrested as part of the operation was taken to one of two prisoner processing points in the Westminster area.
Those whose details could be confirmed were released on bail to appear at a police station at a future date. They were given conditions not to attend future demonstrations related to Palestine Action.
Those who refused to provide their details at the prisoner processing points and those who were found to have been arrested while already on bail, were taken to one of a number of Met Police custody suites.
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Charity Amnesty International described the mass arrests under UK terrorism law as “deeply concerning”.
The crowd, sat on the grass inside Parliament Square, could be seen writing “I oppose genocide, I support Palestine Action” on white placards at 1pm, with the vast majority remaining silent.
Meanwhile on Sunday, hundreds of people joined a march on Downing Street to urge the release of those being held in Gaza by Palestinian militant group Hamas.
A scuffle broke out after at least two men shouted “Free Palestine” in front of the march.
One man was seen being bundled to the ground close to Trafalgar Square after being surrounded by around a dozen people.
Another man was seen being moved away by police officers after he began shouting.
Amnesty International says it is “deeply concerning” that police made 474 arrests during a Palestine Action demonstration in London.
Metropolitan Police said 466 were detained under the Terrorism Act for showing support for a banned group.
Eight more people were arrested for other offences, including five for assaulting officers.
The Met said it was the most arrests it’s made related to a single operation in at least the past decade.
Pic: PA
Organiser of the event, Defend Our Juries, earlier said up to 700 people were at the event in Parliament Square and claimed police were preparing for the “largest mass arrest in their history”.
The group said those arrested included former Guantanamo Bay detainee Moazzam Begg, NHS workers, quakers and a blind wheelchair user.
Amnesty International UK’s chief executive Sacha Deshmukh said in a statement: “The protesters in Parliament Square were not inciting violence and it is entirely disproportionate to the point of absurdity to be treating them as terrorists.
“Instead of criminalising peaceful demonstrators, the government should be focusing on taking immediate and unequivocal action to put a stop to Israel’s genocide and ending any risk of UK complicity in it.”
The Met said a “significant number of people” at the event were seen “displaying placards expressing support for Palestine Action”.
Home Secretary Yvette Cooper said: “The right to protest is one we protect fiercely but this is very different from displaying support for this one specific and narrow, proscribed organisation.
“Palestine Action was proscribed based on strong security advice following serious attacks the group has committed, involving violence, significant injuries and extensive criminal damage.”
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Palestine Action supporters arrested at protest
Police said those arrested had been taken to processing points in Westminster and any whose details could be confirmed were bailed on condition they didn’t attend further Palestine Action support events.
Others whose details could not be verified, possibly because they refused to give them, were taken to custody suites across London.
Pic: PA
The protests have put a strain on authorities’ capacity to cope.
Sky News understands senior leaders in the prison service, known as “Capacity Gold”, met today to discuss how to deal with the large number of arrests as the male prison estate is close to full.
It’s understood 800 inmates were moved out of the busiest jails in and around London beforehand.
In a statement, the Metropolitan Police Federation said: “Thinking of our colleagues and wishing all assaulted officers well. Remember there are no ‘extra’ police officers – just the same ones having their days off cancelled, having to work longer shifts and being moved from other areas. Officers are emotionally and physically exhausted.”
Read more: What does proscribing a group mean?
Legislation to ban Palestine Action came into force on 5 July, making it a criminal offence to show support for the organisation, carrying a prison sentence of up to 14 years.
Defend Our Juries said earlier this week the protest would still go ahead, following several similar demonstrations since it was outlawed last month.
On Saturday, a spokesperson said: “Palestine Action and people holding cardboard signs present no danger to the public at large.”
Pic: PA
Human rights advocates Amnesty International described the arrests of so many people under UK terrorism law as “deeply concerning”.
Another march organised by the Palestine Coalition, which is a separate group, set off from Russell Square and assembled on Whitehall.
The Met Police said one person had been arrested there for showing a placard in support of Palestine Action.
Pic: Reuters
Earlier this week, three people charged as a result of illegal Palestine Action activity were named.
Jeremy Shippam, 71, of West Sussex, Judit Murray, also 71, of Surrey, and Fiona Maclean, 53, of Hackney in east London, will appear at Westminster Magistrates’ Court on 16 September.
The ban on Palestine Action faces a legal challenge in November after the High Court granted a full judicial review to Palestine Action co-founder Huda Ammori.
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