Treasury Committee to scrutinise energy price cap and look ahead to mini-budget
21 September 2022
The Treasury Committee will examine the effectiveness and taxpayer value of the Government’s proposed response to soaring energy prices at 2.15pm on Thursday 22 September.
MPs are expected to question whether the Government’s Energy Price Guarantee plan, under which household energy prices will be frozen, goes far enough. Questions are also likely to be asked about the plan’s support for businesses, which is initially set to last for six months.
Recent estimates from the Institute for Fiscal Studies and Resolution Foundation suggest the plan could cost more than £100 billion, greater than the total cost of the pandemic furlough scheme.
Committee members are likely to discuss how the energy price cap will be funded, and the implications of widely-trailed tax cuts in Friday’s mini-budget on households, growth, and the health of the public finances.
With recent analysis suggesting higher income households will benefit the most from the price cap, witnesses may be asked whether more targeted measures would deliver better value for the taxpayer.
The session is also expected to examine the impact on inflation and interest rate rises, and the effects of lifting the bankers’ bonus cap.
Thursday 22 September in the Wilson Room, Portcullis House
- Torsten Bell, Chief Executive, Resolution Foundation
- Louise Hellem, Director of Economic Policy, CBI
- Rebecca McDonald, Chief Economist, Joseph Rowntree Foundation
- Neil Shearing, Group Chief Economist, Capital Economics