Freeze energy cap now to avoid poverty ‘catastrophe’, council leader urges new PM

In a letter to Liz Truss, Cllr Kaya Comer-Schwartz warned that more “dither and delay” would mean Islington families and pensioners facing “impossible choices between heating and eating”, and damage the council’s mission to create a more equal borough.

The urgent call for action comes as the council launches a new campaign to encourage more households to apply for millions in unclaimed benefits they are entitled to as they face a squeeze from rising inflation.

The council has called for the Prime Minister to announce: 

• An immediate freeze on the household energy price cap at the current level of £1,791 per year, stopping families from being plunged into poverty this winter 
• The introduction of a temporary energy price cap for small and medium-sized businesses, with Ofgem given new powers to strengthen regulation 
• Early confirmation that Universal Credit and other benefits, and the benefit cap, will rise in line with inflation from April 2023, and additional in-year support in the coming months to support the most vulnerable families facing crippling food and household bills
• Building on Islington’s example and extending free school meals to all children, regardless of income or background, and providing ring-fenced funding for schools to help with energy costs

Cllr Comer-Schwartz said: “Our mission is to create a more equal borough, but we’re all feeling the impact of the cost of living crisis already and the real effect on people in Islington.

“The council is here to help and we’re doing everything we can to ensure those on the lowest incomes claim every penny of benefit they’re entitled to as prices rise quickly.

“But a crisis of this scale requires urgent Government action, which is why I’m calling on the new Prime Minister to make it her immediate priority to stop energy prices rising further and provide more direct support for those with the least means to cope.

“We also know that small businesses in Islington face a hugely uncertain autumn, with no cap or direct support to help them with crippling energy costs – choking off our borough’s economic recovery from Covid. They need help right now from ministers.

“Our progress towards making Islington a more equal borough will be put at risk without an urgent and radical plan from the Government.”

The council's dedicated advisors provide friendly advice to anyone about benefits, help with bills and other ways to make money go further, and are just a phone call or email away. To speak to someone, call 020 7527 8222, email heretohelp@islington.gov.uk or visit islington.gov.uk/costofliving 

The council provides free school meals to all council-run nursery and primary schools in Islington. This month it will also pay £150 to families of children eligible for statutory free school meals who are transferring from Year 6 to secondary school, to meet the cost of school uniforms – one of the most generous grants in the country.

Notes to editor

Read Cllr Comer-Schwartz's letter to the Prime Minister today, which is also available to download as a PDF:

Dear Prime Minister,  

Congratulations on your appointment. I’m writing to urge you to take immediate action to support families in Islington desperately in need of help due to the cost-of-living crisis our country faces.  

With the energy price cap due to rise to £3,549 per year for dual fuel for an average home from 1 October, and further rises expected, thousands of people in our borough face a household budgeting catastrophe in the coming months, pushing many further into poverty. With the Bank of England also forecasting inflation of at least 13% this year, parents and pensioners in Islington are facing impossible choices between heating and eating that nobody in our country should have to face.  

In addition, the small businesses in Islington that are the backbone of our local high street, and do not benefit from a cap on energy prices, are facing collapse through no fault of their own, choking off our economic recovery from Covid.  

Your Government must make this its immediate mission and, after months of dither and delay, announce a comprehensive package of support to families and businesses that will help them right now – not in the distant future. We believe this must include:  

• An immediate freeze on the household energy price cap at the current level of £1,791 per year, stopping families from being plunged into poverty this winter 
• The introduction of a temporary energy price cap for small and medium-sized businesses, with Ofgem given new powers to strengthen regulation 
• Early confirmation that Universal Credit and other benefits, and the benefit cap, will rise in line with inflation from April 2023, and additional in-year support in the coming months to support the most vulnerable families facing crippling food and household bills 
• Building on Islington’s example and extending free school meals to all children, regardless of income or background, and providing ring-fenced funding for schools to help with energy costs

In Islington, we’re doing everything we can to support families this autumn, including providing universal free school meals for primary school pupils, helping with the costs of secondary school uniforms and launching a campaign to ensure our residents claim all of the benefits they are entitled to. But this is a national crisis that requires a response fitting to its scale. 

It may surprise you to learn that despite oft-repeated cliches, Islington already has the highest level of child poverty in London, and the fourth-highest for older people. It’s our mission to make Islington a more equal borough, but without Government action, this crisis will further exacerbate this poverty. 

I urge you to act now.  

Yours sincerely,

Councillor Kaya Comer-Schwartz