By Sam Ord
Downloading PDF. Please wait... Issue 2820

Profiteering is at heart of poverty-inducing price rises, says union 

This article is over 1 years, 5 months old
Homelessness, debt and poverty will be on the rise as energy bills go up and companies make massive profits
Issue 2820
protests against poverty inducing energy and fuel prices during cost of living that energy companies like ofgem profit from

Protesters outside Ofgem offices in Glasgow fighting against poverty inducing price rises (Picture: Andrew McGowan)

Fat cats at Britain’s giant gas and electric suppliers are grabbing masses of profit, fuelling the record prices working class people are made to suffer. At least 30 percent of the Ofgem price hike is made up of profit for the fat cats. poverty

This is a fact the Tories and elite choose to ignore, blaming the crisis on market prices or the war in Ukraine.  Research by the Unite union found that the major energy suppliers, distributors and generators have collectively made a vast £15.8 billion in profits in the last year.
 
Some £9.5 billion was made by just four energy suppliers—Centrica, Eon, EDF and Scottish Power. 
That is a huge 84 percent rise on pre‑pandemic profits. Rampant corporate profiteering is at the very heart of soaring energy bills and Ofgem’s soaring price cap. poverty
 
This is the reality of privatisation—fat cats pass the pain onto the people who pay the bills. And people are furious.  The situation is so desperate that ministers are planning and preparing for a crime wave and riots. 
 
Many people are staring down the barrel of poverty.  We must demand that the energy giants are not allowed to continue like this.


Winter will bring homelessness
According to homelessness charity Crisis, some 1.7 million households could become homeless this winter. Those in the lowest income households, earning an average of £12,650 annually, are most likely to face this threat as the cost of living is expected to exceed their income by a third.
 
The charity also warns that those in households in high rent areas or in poorly insulated homes are at increased risk. And this threat could be worsened as food banks run dry, and the Tories offer no effective change. poverty
 
Prime minister hopeful Liz Truss said, “I don’t agree with these portents of doom.” She added, “I believe our country’s best days are ahead of us.”


Many won’t switch on the heat 
Nearly one in four adults will not switch on the heating at all this winter as soaring prices make it completely unaffordable for many.  The figure rises to 27 percent for parents with children under the age of 18. poverty
 
MPs describe the situation as a “national scandal”, predicting that many will fall ill or even die. As much as 70 percent of people claim they will use their heating much less. Poverty and debt are a price many are forced to pay to stay warm with 11 percent considering taking out loans and 23 using credit cards to cover the cost. poverty
 
Many are choosing to resist this onslaught, with thousands flooding into campaigns such as Enough is Enough, Power to the People and Don’t Pay UK. 
 
New figures show that around that around 70 percent of people support Enough is Enough’s main demands. These include taxing the rich more, pay rises in line with inflation and cuts to energy bills. y

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