Electricity Bills Linked to Income Tax Proposal

Published / Last Updated on 01/09/2022

The Chief Executive of the UK’s third largest energy supplier, Ovo Energy, Stephen Fitzpatrick has suggested that the government introduce a progressive energy pricing cap system that is linked to our progressive income tax system (the greater income you have, the higher the tax rate and the more tax you pay).

In addition, he suggests as part of a 10-point plan that lower earners should get access to lower energy prices but only up to a certain consumption level.  This will mean that low earners with low consumption will benefit and better able to cope with the storm that is building on our energy prices.


We agree but partially disagree the suggestions.  It is unfair that those hard workers that do earn more or have save money in pensions and investments should be penalised for working hard and developing their careers, their business, or their investment portfolios.  Higher earners should not be penalised anymore than they already are on taxes or other ‘stealth’ taxes.

We suggest:

Continue with the grant system for lower earners but have these grants paid directly to their power suppliers rather that into their bank. Being paid into bank accounts for many will mean that money is spent elsewhere rather than on energy.

Continue with winter fuel allowances for pensioners.

A progressive energy pricing system based upon consumption rather than income.  This will encourage us all to be more careful with our power use.

A means tested grants system for insulation, boiler, water heater, storage heaters upgrads to encourage all to improve energy efficiency in the home.

Explore our Site

Money MOT
T and C