We need more targeted support over energy bills

The government’s extension of the energy price guarantee is welcome – but it is not enough, argues James Moore

Forced to switch it off? Fuel poverty has become an issue for many (PA)

Critics of the government’s energy bill support measures have long focused on the lack of targeting, with the barbs coming from both the left and the right. The Institute of Economic Affairs, for example, has described the energy price guarantee as “middle-class welfare”.

However, there was little enough time for subtlety when the scheme was launched at a time when some forecasts were suggesting average annual bills could smash through the £5,000 barrier.

The government had to move fast and its various schemes, while horribly expensive and offering the most benefit to the richest according to the Resolution Foundation, did at least come with the payoff of limiting damage to the economy. However, the problem with the government’s approach is looking increasingly glaring.