Setting out radical plans to tackle the energy crisis, the New Economics Foundation thinktank (NEF) said a system of “free basic energy” could be launched as early as next year
Setting out plans to help the poorest families with soaring bills and to dampen the effects of a looming recession, the NEF said a three-pronged approach was required, including reforms to benefits and one-off payments for all households.
The leftwing thinktank said a limit of 8,000 kilowatt hours per year free of gas and 2,000 kWh of electricity could be funded by the government.
Based on current estimates for prices in April 2023, this would mean just under £4,600 in free energy per household.
On top of this, the NEF said the government’s windfall tax on oil and gas producers could be expanded to raise £22bn, with the proceeds used to pay for a new “cost of living allowance” worth £750 for every household