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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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Backpack EU begins operations with CySEC-approved derivatives platform

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Backpack EU begins operations with CySEC-approved derivatives platform

Backpack EU begins operations with CySEC-approved derivatives platform

Backpack EU, owner of the former FTX EU, launches a regulated perpetual futures platform in Europe after settling with the Cyprus regulator and securing a MiFID II license.

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New home secretary to host talks on people smuggling as small-boat crossings hits 30,000

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New home secretary to host talks on people smuggling as small-boat crossings hits 30,000

The new home secretary will host talks on how to stop people smuggling in her first major engagement in the role.

Shabana Mahmood will host the so-called Five Eyes security alliance, holding talks between counterparts from the US, Australia, Canada and New Zealand.

The security alliance discussion comes after an estimated 1,000 people arrived by small boat in Britain over the course of a single day, with French authorities saying 24 people were rescued while trying to cross the English Channel.

Ms Mahmood said the numbers, which take the yearly total to more than 30,000 in record time, were “utterly unacceptable” and that she expected migrant returns under a deal agreed last month with France to begin “imminently”.

She was promoted into the role Friday during a dramatic reshuffle of Keir Starmer’s top team, which followed in the wake of Angela Rayner’s resignation over her tax affairs.

Politics latest: ‘One of the worst PMs in history’

Sir Keir will now be hoping to draw a line under the fallout of his former deputy’s departure, as well as a summer dominated by criticism of his government’s handling of the small boats crisis.

Ms Mahmood said the Five Eyes intelligence sharing pact would “agree new measures to protect our border”. The group will also discuss new measures to tackle child sexual abuse online, as well as the spread of deadly synthetic opioids, the Home Office said.

Ms Mahmood said: “Rebuilding our reputation on the world stage is how we tackle serious organised crime and secure our borders.”

Read more from Sky News:
Military sites could house migrants
Rayner’s rise to deputy PM

“The Five Eyes might be drawn from different corners of the globe, but we are united by our alliance,” she added.

“As the security threats we all face become more complex and span continents, we are stronger and safer together.”

She will be joined at the talks by US secretary of homeland security Kristi Noem, Canadian public safety minister Gary Anandasangaree, Australian home affairs minister Tony Burke and New Zealand minister Judith Collins.

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What PM’s reshuffle reveals about his priorities

The Prime Minister has told his new ministers to “go up a gear” in delivering on Labour’s agenda, part of which now involves a toughened immigration policy as he faces pressure in the polls from Nigel Farage’s Reform UK.

In Ms Mahmood’s first full day in the job, she met the head of Scotland Yard to receive a briefing on the policing operation in response to protests in London.

“Supporting Palestine and supporting a proscribed terrorist group are not the same thing,” she said.

“An honour to visit Sir Mark (Rowley) and the Metropolitan Police to see them at work policing protests yesterday.”

Almost 900 people were arrested in central London at a protest against the banning of Palestine Action.

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Labour ‘failing to deliver change that people voted for’ – TUC chief

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Labour 'failing to deliver change that people voted for' - TUC chief

The leader of Britain’s trade unions is to accuse Sir Keir Starmer of failing to deliver the change Labour promised during the election campaign last year.

In his keynote speech at the TUC conference in Brighton, general secretary Paul Nowak will claim that for too many people change still feels like a slogan, not a reality.

After a troubled first year in government that has seen Labour lose support to Reform UK, Mr Nowak will warn the lack of change cannot continue and the government must deliver on jobs, public services and living standards.

And he will claim Rachel Reeves’ budget on 26 November must include windfall taxes on bank profits and gambling companies, a wealth tax on millionaires and the lifting of the two-child benefit cap introduced by George Osborne during the coalition government.

Mr Nowak’s speech comes just days after the unions lost their champion in cabinet, Angela Rayner, prompting fears among delegates in Brighton that the government is poised to weaken its flagship legislation on workers’ rights.

Paul Nowak. File pic: PA
Image:
Paul Nowak. File pic: PA


The Conservatives have responded to Ms Rayner’s demise by writing to the new business and trade secretary, Peter Kyle, calling on him to scrap the Employment Rights Bill, claiming it will reduce jobs and mean more red tape and bureaucracy.

But Labour is losing support to Nigel Farage’s party, not the Tories, and will also – potentially – to left-wing parties in future. And in an unusual move, the new left-wing leader of the Green Party, Zack Polanski, will also address the TUC later.

More on Tuc

Read more:
Unite boss warns Labour’s key backer may end support

Unions demand no retreat on workers’ rights after Rayner quits
Without Angela Rayner ‘there will be no holding back’ Labour’s left wing

Labour’s election manifesto last year showed a black and white photo of a shirt-sleeved Sir Keir on the front cover with the single word “Change” in red.

In his attack on the government’s first year in office, Mr Nowak will say: “The Tories took Britain to the brink. That’s why last July, the government was elected on a manifesto that promised change.

“But we have to be honest – for too many people, change still feels like a slogan not a lived reality.

“This can’t continue. Throughout our history, we’ve been at our best when we’ve been ambitious for working people.

“So today, my message to the government is simply this.

“Deliver the manifesto on which you won a huge majority last July. Deliver good jobs, decent public services and better living standards in every corner of the country. Deliver the change people voted for.

“And show working-class communities whose side you are on.”

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Could Rayner come back?

On the budget, which Labour MPs believe will be crucial to the government’s hopes of recovery in its fortunes, Mr Nowak will declare: “Introduce a windfall tax on record bank profits and gambling companies. And back it with new taxes on wealth.

“If billionaires can afford fleets of private yachts. Day trips into space. Weddings that shut down Venice – they can pay a bit more tax.

“Do what’s best for those who go out to work, day in, day out, and still can’t get by. Deliver the Employment Rights Bill and deliver it in full.

“And make it clear – a Labour government will never stand aside and watch a child’s potential be wasted because of poverty. Lift the two-child cap, and give our kids the future they deserve.”

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TUC to govt: ‘Deliver on workers’ rights’

And on the issue set to dominate this week’s conference, workers’ rights, Mr Nowak will say: “The government has a manifesto promise to make work pay.

“Stronger rights at work are overwhelmingly popular with voters across the political spectrum.

“The public knows decent work is the best way to deliver the reset this country needs.

“The best way to improve living standards.

“And the best way to rebuild our communities hit hard by low pay and insecure work.

“So here is our challenge to government.

“Deliver that Employment Rights Bill in full and deliver the change you promised at the election.”

But the Tories’ shadow business secretary Andrew Griffith, in a letter to Mr Kyle, claims the bill will be deeply damaging to economic growth and reduce living standards.

“Rather than proceed at this time with a measure which on the government’s own impact assessment will reduce employment and growth, now is the time to put the national interest first,” he wrote.

“Any credible ‘reset’ of this government requires that this bill be shelved and the government look afresh at measures to promote the growth and competitiveness of the UK economy.”

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