Starmer cap freeze £10bn shortfall ?

Effician

I originally posted this on another thread as a thought i had but seems it may need it's own space.

The Starmer plan of almost £30bn is supposed to save the average user £1000 over the  6 months from Oct to April, i presume this is an average of the £1600ish & £2200ish projected  increases in Oct & Jan based on a yearly average use, BUT doesn't the average user consume around 70-75% of their energy over these 6 months.

Does this mean he's missed a trick to say he's saving us more or is he hiding the fact that the funding costs will be considerably higher.

Thanks to @sienew @pochase & @[Deleted User]  for previous replies & calcs on the other thread https://forums.moneysavingexpert.com/discussion/6379442/opposition-proposals-to-freeze-the-price-cap-fair-for-people-who-have-fixed/p24

It would appear from initial findings there maybe a serious hole in the fully costed plan.

The_Green_Hornet

Effician said:

I originally posted this on another thread as a thought i had but seems it may need it's own space.

The Starmer plan of almost £30bn is supposed to save the average user £1000 over the  6 months from Oct to April, i presume this is an average of the £1600ish & £2200ish projected  increases in Oct & Jan based on a yearly average use, BUT doesn't the average user consume around 70-75% of their energy over these 6 months.

Does this mean he's missed a trick to say he's saving us more or is he hiding the fact that the funding costs will be considerably higher.

Thanks to @sienew @pochase & @[Deleted User]  for previous replies & calcs on the other thread https://forums.moneysavingexpert.com/discussion/6379442/opposition-proposals-to-freeze-the-price-cap-fair-for-people-who-have-fixed/p24

It would appear from initial findings there maybe a serious hole in the fully costed plan.

Similar to their 2019 manifesto then.

mark_cycling00

It's a political position rather than a practical solution.

The tories are probably only going to give extra help to low-income familes in Oct. That means lots of middle-class (floating) voters be very annoyed with their energy bills for the foreseeable future and may view Sir Kier as a more caring option.

Whereas the tories will position themselves as very anti-strikes (when there are or could be mass general strikes) but much of labour will support strikes. There will be lots of middle-class (floating) voters who won't get the 10% pay increases gained through strikes. I read that LU staff recently got 10% increase.

markin

I watched the sky news video and instantly knew the goalposts had moved and the was a £1-2K black hole, 'X26m homes' They need 50B, Then another 10B, And another.

wittynamegoeshere

Does anyone actually bother to analyse opposition policies?  I'd assume it's nonsense without getting out a calculator.

Pick your team, red or blue.  Either way you lose.

All part of the politics charade that we pretend is some kind of democracy.

Mstty

I pay as much attention to Starmar as I do Sturgeon. Love the Krankies👍

This so called price cap freeze has pretty much been pulled apart everywhere. 

New PM 5th September and emergency budget 3 weeks later let's see what we get.

Effician

It does make you wonder who checks their costings before announcing to the country their plans, to be a serious contender for gov't you at least need the sums to add up to be considered credible.

The problem with speculative sensationalist & misleading claims is that it often hurts the people it's aimed at helping.

pochase

There is no need to do a complete analysis and deliver working figure for labour. All they need is voters to see that they care and wanted to help them.

Who do you think of the millions will look at it and say "hold on, that can't work". Economists and others are already clearly say this cannot work and figures are wrong.  

They are not the government, it is enough that they deliver a feel good message, and that the Tories will not be able to help everybody. Labour can only win here. If the Tories try to do something like this, it was a Labour plan, if not Labour cares, and the Tories don't.

[Deleted User]

There is a more robust plan on the table where Government money is not directly involved. Centrica (BG) and Octopus have suggested that prices should be frozen at the present Ofgem Cap for 2 years. The suppliers would take out a commercial loan - underwritten by Government - which suppliers would draw on to recover lost income. 

When energy prices fall, suppliers would not pass on the savings. These would be used to repay the loan.

In my opinion, this could prove to be popular with politicians as it involves no public money. It would have an impact inflation which a 6 month Cap wouldn’t. Moreover, it would enable Government to provide extra support to the vulnerable; to the care sector; to small businesses all of whom are badly impacted by high energy prices/inflation. The plan was discussed at the Ministerial meeting last week.

So far, neither PM candidate has come up with any plan which - as the Army would put it - would withstand the first contact with the enemy.

Effician

pochase said:

They are not the government, it is enough that they deliver a feel good message, and that the Tories will not be able to help everybody. Labour can only win here. If the Tories try to do something like this, it was a Labour plan, if not Labour cares, and the Tories don't.

Like the Corbyn message you mean?

Mstty

But now pay later lengthens a recession.