Chart showing cash benefit of policy option by after housing costs income decile and energy use: 2025-26, UK/ GB/ England
The lines show the mean cash value of each policy option in each income decile and the shaded areas show how cash benefit varies between those in the top and bottom quintile of energy use (measured by total bills) within each income decile.
A social tariff that provides discounted prices for low-income families is the best way to deliver targeted energy support this winter.
We modelled several alternatives, but none were as effective at targeting low-income households with high energy bills as a social tariff (in green).
1 week ago
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A good heron in Finsbury Park
2 weeks ago
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The government’s “don’t panic” message on energy is preventing sensible efficiency measures | Institute for Government
Ministerial messages on energy prices risk looking complacent.
Bridget Phillipson’s media round to tell people to fill up their cars as normal was an attempt to prevent panic buying.
But the desire to reassure risks repeating the mistakes of 2022, warn @jillongovt.bsky.social and @rosahodgkin.bsky.social www.instituteforgovernment.org.uk/comment/gove...
2 weeks ago
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It is also worth adding that almost nothing we provided to Ukraine is even relevant to this conflict. The only thing that would be is the PAC-3 and we gave a borderline negligible number of interceptors.
We're not using GMLRs, Bradleys or 155mm rounds to fight Iran. This is completely made up.
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It's not the biggest barrier - the Government can always pass new primary legislation. But on the face of it, it seems like they'll need to get something through Parliament before they can do any of the bigger interventions.
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I don't think that the Government could establish a new Energy Price Guarantee policy simply using the section 13 powers.
And I'm not sure it can resurrect the powers in sections 1-3 using new secondary legislation.
@jillongovt.bsky.social @aliceolilly.bsky.social or other IfG pals might know?
1 month ago
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This seems to be a stop-gap measure (as the explanatory memorandum notes "Further such instruments will be required).
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The section 13 powers had a longer sunset period, and remain active until 25th April this year.
Because the Government wants to maintain the subsidy on the RO levy, it laid secondary legislation to extend this deadline until 25th October 2026.
statutoryinstruments.parliament.uk/instrument/j...
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The act does create other powers, which are still in effect. Most notably, the UK Government used powers under section 13 of the Energy Prices Act to implement a subsidy covering 75% of the cost of the Renewables Obligation levy on domestic electricity bills (from April 2026).
Presumably 13 (1) (c)
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The relevant powers to establish the scheme are contained in sections 1-3 of the Energy Prices Act 2022. The time limits on these powers are set out in Schedule 6.
By my reading this suggests that they lapsed on 2nd October 2024.
www.legislation.gov.uk/ukpga/2022/4...
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The Energy Price Guarantee created a de jure alternative to the Ofgem price cap by fixing the unit rates for electricity and gas (at ~34 p/kWh and 10.3 p/kWh respectively). It took precedence as long as this was cheaper than the default tariff cap.
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The Government is weighing options to respond to yet another 'one in a generation' fossil fuel price shock.
The main policy that protected households back in 2022/23 was the Energy Price Guarantee. But I think the relevant powers to implement it (again) have lapsed? Thoughts/corrections welcome.
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That Brent / WTI spread is looking a bit...crazy.
Pretty much $20/bbl (you would expect it to be ~10% of that).
If there is one thing regulators did not learn from Russia/Ukraine is that trading houses should be a huge focus, but it will be oil producers only (should be *as well*).
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Chart showing historical annualised default tariff cap levels, direct debit customers with typical consumption, and projection under high gas price scenario: GB
Prolonged highs in gas prices could push up the price cap by around £500 in July.
The government should use the time between now and then to think smartly about how support can target vulnerable families with lower incomes and high energy needs.
Read more 👉 buff.ly/bDPVzLB
1 month ago
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As ever, Stephen sums things up so much better than anyone else. What febrile times these are
1 month ago
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Thanks Lime/Forest, I didn't want to use that bin anyway 🙄
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100% correct - the entire aesthetic is dire, and made worse because they pulled their punch on one of the bigger choices they made.
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The real lesson to take from Gorton and Denton is for the future of UK democracy | Institute for Government
Westminster is dangerously underprepared for a multi-party future.
Westminster is dangerously underprepared for a multi-party future.
Responsible and farsighted leadership would mean recognising the Gorton and Denton by-election as a warning.
Read our full comment here:
www.instituteforgovernment.org.uk/comment/gort...
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I'm delighted with my heat pump.
But my experience getting it installed taught me what’s been stopping many more people from getting one (so far).
I wrote for @politicshome.bsky.social on the hurdles that government needs to think about as it implements the Warm Homes Plan. 👇
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NEW ANALYSIS: UK emissions fell 2.4% in 2025 as coal fell to a 400-year low. Incredibly, we used less coal last year than than in 1600, when Queen Elizabeth I was on the throne and Shakespeare was writing Hamlet.
All the details in our article: www.carbonbrief.org/...
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The great British electricity puzzle
It turns out that making the transition to clean energy while keeping the price down is hard
This is a frustrating column by Martin Wolf - which is sadly typical of a lot of economics commentary on GB energy.
It does identify some of the key causes of high electricity prices - including Britain’s high exposure to gas prices and rising network costs. But there’s a lot it leaves out…
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This thread has the most succinct and convincing analysis of the by-election result that I've seen so far today.
1 month ago
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We're all going to die, aren't we? 🫠
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I could have understood it as house style for acronyms, but the IEA, PPP and IMF say otherwise.
I guess this is just one of those mysteries
1 month ago
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Managing Decline - A regulated asset base for legacy gas in the age of clean power
Link to the report for those who haven't seen it already. Worth a look
www.stonehavenglobal.com/managing_dec...
1 month ago
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