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Energy bills remain high despite a cap cut – three years of the cost of living crisis have been devastating says Usdaw

Date: 24 May 2024 Retail trade union Usdaw has expressed disappointment that the Tories have failed to tackle a cost of living crisis that has severely impacted low-paid workers for three years. Inflation first went above the target rate in May 2021 and peaked in double figures for six months. RPI inflation since the last election stands at 31%, yet average incomes have risen by less than 25%.
Today the regulator announced the cap on unit prices of household energy is set to dip by 7% but remains over 36% higher than at the last general election. The typical household, on a dual-fuel direct debit, will pay £1,568 in energy bills from 1 July this year. Many could pay more depending on usage.
 
Usdaw conducted a survey of over 6,000 members, mainly key workers, and found that:
  • Nearly 70% have struggled to pay energy bills in the past year, with 30% struggling to pay them every single month.
  • Around a third no longer use their household heating.
  • Over four-in-ten have cut down on other essentials such as food. 
Paddy Lillis – Usdaw general secretary says: “While household energy costs are slowly coming down, they’re still 36% higher than at the last election and most have not had an equivalent pay rise in that period, as inflation has devalued incomes. Many will be asking themselves at this election if they are better off than at the last election, the evidence is clear that they are not.
 
“Short-term government support with ongoing cost of living pressures was not enough and has now been discontinued. As the cost of living hits its third anniversary, it is clear that the Tories have failed to deliver lasting solutions for the low-paid, with only short-term sticking plasters.
 
“In stark contrast Labour has a plan for a new publicly-owned energy company, Great British Energy, that will invest in homegrown clean energy to boost energy independence and cut bills for good. Labour will also deliver the new deal for working people, that Usdaw long campaigned for, which will provide much needed employment rights to end poverty pay and insecure work.
 
“Our members and all workers need Labour in government to deliver the change they so desperately need. They have the opportunity to make that happen on 4 July.”
 
Notes for editors:
 
Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk
 
Labour’s New Deal for Working People: https://labour.org.uk/updates/stories/a-newdealforworking-people
 
Labour Great British Energy: https://labour.org.uk/missions/clean-energy
 
Office for National Statistics Inflation Bulletin - April 2024: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/april2024
 
Ofgem energy price cap: https://www.ofgem.gov.uk/energy-price-cap
 
For Usdaw press releases visit: http://www.usdaw.org.uk/news and you can follow us on Twitter @UsdawUnion

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The official website of the Union of Shop, Distributive and Allied Workers