Tory councillors on North Yorkshire County Council have told the Conservative Party leadership candidates that direct targeted help will be needed to support residents through the energy cost crisis.

Senior members of the party in the traditional Conservative stronghold of North Yorkshire say they are becoming increasingly concerned about how the most vulnerable members of the community will cope financially ahead of Ofgem confirming October’s energy price cap tomorrow.

They have pointed towards demand for North Yorkshire County Council’s Local Assistance Fund, which provides support for vulnerable people needing help with essential living costs, doubling in recent months.

Energy bills are forecast to top £5,300 annually in April next year, representing a huge increase from previous predictions.

Prime ministerial candidate frontrunner Liz Truss has promised an emergency budget if she is selected, saying she would reverse National Insurance rises and stop business tax hikes.

She has also suggested extra cash support may be available for families struggling with energy bills.

Meanwhile Rishi Sunak said he would prioritise tackling inflation and introduce more targeted support for households, pledging to reduce VAT on domestic energy bills.

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A meeting of North Yorkshire County Council’s executive this week heard its finance boss and deputy leader, Councillor Gareth Dadd, say while he remained confident the authority could rise to the challenge of tackling inflationary pressures, some residents would struggle.

Cllr Dadd (pictured above) said:

“If I can just give one message to either one of the, well one in particular, of the prime ministerial candidates, call it hand-outs, call it what you want, there is no two ways, given the rising price cap that we are expecting in a few days’ time, direct support will be needed to those most in need.

“A pound a week saving via a tax cut will not make the cut as far as I am concerned across the most vulnerable residents in North Yorkshire.

“It’s about time we got real and recognised this and it’s direct support that’s needed as there’s an impact on our services and our costs. I think we’ve already seen evidence of that through the Local Assistance Fund.

“The plea is direct target help with those energy bills will go a long way to seeing off some of the demand rises that we’ve seen lately.”

Harrogate District Chamber of Commerce has warned the area’s MPs that many businesses will soon reach a “tipping point” and have to close as soaring energy bills hit the high street.

Chamber chief executive David Simister said in letters to Conservative MPs Andrew Jones, Julian Smith and Nigel Adams that he had “grave” concerns for the outlook of high streets with the worst of the energy crisis yet to come ahead of the looming recession.

Mr Simister urged the MPs to put pressure on the government to “act now” and provide support for firms “before it is too late”.

He said:

“Whilst the focus seems very much to be on the cost of living crisis for homeowners, there is little being said about industry and commerce, and what, if any support, will be given to prevent businesses being forced to shut.

“Very soon, the 12-month, 50% business rates discounts is to end.

“This again is going to heap more financial woes on those who pay this tax to central government.

“Coupled with the rising costs of raw materials, fuel, the living wage, and National Insurance, many businesses will soon reach a tipping point, and unfortunately for some the only option will be to shut.”

Unlike households, small businesses’ bills are not covered by the energy price cap, which is set to go up in October when annual bills will average £3,554.

The Labour Party has proposed freezing the cap at the current level of £1,971 a year for households until April when it is hoped prices may start to ease.

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The party argues this would ease pressure on households and potentially give a boost to businesses as shoppers would have more money to spend.

However, Liz Truss and Rishi Sunak – the two Conservative candidates competing to replace Boris Johnson as Prime Minister – have both rejected the plan.

The massive bill increases are already being felt by Harrogate district businesses and with further rises on the horizon, Mr Simister said many will simply not be able to cope with the double impact of shoppers cutting back spending.

He added these impacts were being felt even harder off the back of the covid pandemic which brought “two years of extreme difficulties for businesses”.

He said in his letter to MPs:

“For some, I fear the looming energy crisis, which is yet to bite, will be one storm too many to weather,”

“I urge you as our constituency MP to put pressure on your government colleagues to act now, not in two or three weeks’ time, to bring certainty, and hopefully some comfort, to business owners, including myself, who are incredibly worried.”

The three MPs have been contacted for comment.

Council tax rebates worth £150 are starting to be paid into bank accounts across the Harrogate district – but thousands of households will have to wait to apply.

The government support is being sent out by Harrogate Borough Council to help ease the impact of huge rises in gas and electricity bills.

The payments are being made directly into the bank accounts of households with council tax bandings of A – D, but only to those which have a direct debit set up with the council.

Around 15,000 households paying by any other means will need to apply online, however, the application process has yet to go live.

Julie Gillett, customer services manager at Harrogate Borough Council, told a meeting of the council’s cabinet last night that the authority was working to put the process in place and that this could take around another month.

She said: 

“At the moment, we are working on making payments to the direct debit payers and then opening applications up to non-direct debit payers.

“We are still in development, but we will be looking more towards the end of May to be able to get these applications made.”

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The council this week confirmed the £150 payments have started for those whose first direct debit was taken in April.

It also said the majority of other payments will be made within 28 days.

Also at the meeting, councillors approved the use of £253,350 in government funding to provide £150 payments to households which are not eligible for the main scheme.

This will include households which are in higher council tax bands of E – H but have a low income, as well as multiple occupancy homes which are not liable for council tax but are responsible for energy bills.

The support will also go to band A – D households where council tax liability falls to the owner but the occupiers are responsible for energy bills.

Separately, a further £35 will be added on top of the £150 payments for households which receive council tax reductions.

As well as the council tax rebate announced in February, the government will also discount energy bills by £200 for all domestic electricity customers from October.

However, unlike the council tax rebate, this discount will be automatically recovered from people’s bills in equal £40 instalments over a five year period from 2023, when it is hoped global wholesale gas prices will have come down.

Around 15,000 Harrogate district households could miss out on a £150 council tax rebate because they do not have a direct debit set up with the borough council.

The government announced the support last month to help ease the impact of huge rises in gas and electricity costs.

The payment will be made in April directly into the bank accounts of households with council tax bandings of A – D, but only if they have a direct debit set up with the council.

Anyone paying by any other means will need to make a claim or risk missing out on the £150.

Harrogate Borough Council has this week confirmed it is reaching out to around 15,000 households in this situation to urge them to sign up.

A council spokesperson said: 

“We’re still going through the government guidance for the scheme but we can ensure we’ll do everything we can and make every effort to ensure all eligible residents receive the rebate.

“The easiest way to ensure residents will receive this rebate is by signing up to pay their council tax by direct debit as it will be paid automatically.

“If you do not pay your council tax by direct debit you will be contacted by email or letter in due course so that this information can be provided.

“Please note, we will not contact you by telephone for this information.”

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Some concerns have been raised about the way the payments will be distributed, with Harrogate’s Liberal Democrats describing the approach as “complicated” and “divisive”.

Cllr Pat Marsh, leader of the opposition party on Harrogate Borough Council, said:

“Surely the best way to do it is just to reduce everyone’s council tax bill by £150 at source.

“The bills have not gone out yet, so there is time to do it.”

Cllr Marsh also echoed calls for a one-off windfall tax on big profit oil and gas companies to “raise money to support millions of families facing soaring energy costs”.

This comes after figures from the Liberal Democrats showed Harrogate residents will be among the hardest hit by the energy crisis, with households in the district paying around £796 more this year.

Cllr Marsh said: 

“For years the Conservatives have ignored this problem and failed to take the bold action we need to reduce fuel poverty.

“Boris Johnson cannot look the other way any longer while families face an impossible choice between heating and eating.”

The government has argued that a one-off tax like this would put jobs and investments at risk – something Harrogate MP Andrew Jones previously said would be “very dangerous” and a “potentially hugely damaging blow to British industry.”

As well as the £150 council tax rebate, the government has also announced a £200 discount on energy bills for all domestic electricity customers from October, with the government meeting the costs.

However, unlike the council tax rebate, this discount will be automatically recovered from people’s bills in equal £40 instalments over a five year period from 2023, when it is hoped global wholesale gas prices will have come down.

For more information on the council tax rebate go to www.harrogate.gov.uk/council-tax.

The owner of a family-run nursery chain, which is set to launch a new setting in Harrogate, says he is preparing to “get stung” by rising energy prices.

Matthew Dawson, director of Children’s Corner Childcare, said he had already seen a significant rise in energy bills at his six Leeds nurseries over the last 18 months – including almost double in some cases.

The nursery is set to open a branch at Central House, on Otley Road, in April, when the price hike is introduced.

Mr Dawson said:

“We have several utilities contracts due to run out in the coming months and as such are likely to get stung by the ever increasing costs of keeping our buildings warm.

“This is especially important when looking after young children as we do and not something where corners can be cut.

“Our newest site in Harrogate has a number of obstacles in terms of its energy efficiency which are going to have to be addressed.”

Mr Dawson said the nursery was going to have “the most energy efficient heating system we could find” installed to help mitigate rising costs, as well as investing in insulating the building further.

He added:

“This will not only reduce our ongoing energy bills, but also to reduce our environmental impact as well.

“This will come at a significant cost to the business at a time when margins are squeezed ever tighter by other increasing extraneous costs.”

£80 a month more to pay

For Knaresborough family-of-three, the Hobsons, the energy bills are set to go up by at least £80 per month.

Regional sales director Mike Hobson, who lives with his wife Hannah and their eight-year-old daughter Grace, said:

“This isn’t sustainable and it is now eating into other areas of living costs, especially with all the extra expenditure at the moment, including inflation.

“We were paying £160 a month and we are now paying £240 – for a family-of-three, that’s an extra £1,000 a year.”

From left to right, Grace, Hannah and Mike Hobson, from Knaresborough.

However, the price hike is not just set to hit families and homeowners, with the majority of residents across the Harrogate district set to feel the pinch.

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Catherine Aletta, a junior digital designer at Cloud Nine, which is based at Hornbeam Park, rents a two-bedroom flat near Harrogate town centre with her partner.

She said:

“Energy prices are already a big chunk of monthly outgoings. As prices are set to rise even further, we are both concerned that it will have a big impact on us. The monthly bills are already a consideration to our lifestyle and if they do go up, we will have to start looking at how we possibly cut back on other things.

“We are both very conscious of our energy consumption and do our best to reduce our usage to keep the monthly bills manageable. We use the timer to restrict the amount of time the heating is on, we turn off lights as we leave rooms and make sure we don’t leave the TV on when we are not watching it.

“We have lived in our apartment for six months and we have noticed that the prices have already gone up. Obviously we have had the heating on quite a lot in recent months due to the cold weather, but it is a concern for next winter. If the prices go up even further, we will start to struggle.”

Catherine Aletta.

The price rise comes after the energy regulator, Ofgem, lifted the maximum rate that suppliers can charge for an average duel-fuel energy tariff by £693 — an increase of 54 per cent.

This is to reflect the fourfold increase in energy market prices over the last year.

Harrogate business owners say soaring energy bills are a “kick in the teeth” in the wake of the pandemic.

They are calling for more government support, however they say they “are not holding their breath”, after receiving little help over the last two years.

And there are fears that it will be the final nail in the coffin for some, with the price hike affecting every business – from big to small.

Bills have doubled

Andy Preston, co-owner of F45 Harrogate gym on Albert Street, said it had just received its electricity bill and the amount had doubled.

He said:

“At the end of the day it adds an extra financial burden on the business that we have no control over realistically. It’s an extra overhead that we don’t really need.

“There’s nothing we can do, because it’s the world as it is right now. However, we are getting stung by it.

“It’s just another kick in the teeth after everything we have had to deal with over the last two years. We didn’t get much financial help during the pandemic. The government needs to step up and help businesses now.”

F45 Harrogate owners Andy Preston, left, and Matt Goodall.

Across the road at Thug Sandwich Co, owner Daniel Bell said he was waiting to find out just how much it was going to impact his business.

He said:

“I’ll have to tighten up in other areas. I’ll have to make sacrifices in my personal life – not pay myself as much. I’ve just put my prices up at the beginning of the year anyway, which is something I fought for three years.

“I can’t do that again because then I’m not competitive anymore. So it’s just going to affect my personal life more than anything.

“It’s just another thing to deal with after covid. I definitely wouldn’t hold my breath for any government support. Especially with the amount we got over the covid period. It just seems we are borrowing from Peter to pay Paul. It has got to come from somewhere.”

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Extra blow for hospitality

Brett Lee, director and executive chef at Italian restaurant Stuzzi Harrogate, on King’s Road, agrees that it is an extra blow for the hospitality industry.

He said many restaurants have had to put up their prices already due to a large increase in food and import costs caused by a combination of Brexit and the ongoing effects of the pandemic.

Mr Lee, who also owns Stuzzi Leeds, said:

“It feels like another big obstacle on the road to recovery.

“Every household in the country will now be reviewing how they are spending money due to the rise in energy costs. This may push people to only visit their favourite restaurants once a month instead of a more frequent affair.

“It also means people have less disposal cash to spend in different sectors like retail. This doesn’t help our struggling high streets either and could also have a dangerous effect on restaurant lunch trade across the country.

“But we can’t take a negative approach, we must continue to adapt to the circumstances given to us, work hard, be creative and use our initiative.”

Brett Lee, director of Stuzzi Harrogate.

An ‘unwelcome burden’

Sue Kramer, owner of Crown Jewellers and head of the Commercial Street Retailers Group, described the situation as “worrying”.

She said:

“Whilst many of our shops may be small on Commercial Street, the financial impact of the energy crisis will undoubtedly affect every business – from the smallest up.

“The worrying part is that we have little control over what is going to happen, and basically have to accept whatever is thrown at us. Clearly having endured the uncertainty of covid for the last two years, this is an extra and most unwelcome burden.”

Sue Kramer, owner of Crown Jewellers and head of the Commercial Street Retailers Group.

The price hike comes after the energy regulator, Ofgem, lifted the maximum rate that suppliers can charge for an average duel-fuel energy tariff by £693 — an increase of 54 per cent.

This is to reflect the fourfold increase in energy market prices over the last year.

Fears are growing amongst some of the Harrogate district’s most vulnerable people ahead of a record increase in gas and electricity bills in April.

Customers at community grocery shop Resurrected Bites and people who use the Harrogate District Foodbank, say they have been “having sleepless nights”  over the price hike.

One man, whose food budget for the entire month is £30, said he had just received his renewal quote for energy and it was up to triple the original amount.

Another woman, who uses a pre-pay metre, said she was preparing to cut back and put on some extra clothing to keep warm if necessary.

Resurrected Bites is a Harrogate and Knaresborough-based community organisation aiming to reduce food waste and food poverty.

One of the customers at the organisation’s grocery shop at New Park Primary Academy, told the Stray Ferret about the impact it would have.

The man, from Harrogate, who works full time and has a six-year-old daughter, said:

“I have had to take advantage of the Citizen’s Advice Warm and Well scheme, which has tided me over, hopefully until the minimum pay rise in April.

But I’ve just had my renewable quote for energy and the variable rate is double what I’m paying now and for fixed, it’s triple. So the extra money I will receive will just be swallowed up.

“I don’t know what is going to go on. I think I’m just going to have to wait until April when it actually happens and just take a view on it or hope that the politicians do something more, because at the moment it’s just not a viable option for many people.

“My food budget for the month is £30, including coming here, and that’s for me and my daughter. That will just be gone with any kind of increase. What do you do? Luckily it’s coming into summer.”

Resurrected Bites provides a ‘lifeline’

The customer, who did not wish to be named, said organisations like Resurrected Bites, which also runs ‘pay-as-you-feel’ cafes in Harrogate and Knaresborough, were a lifeline to those in need.

The community grocery store sells good quality donated food to people on a low income for a small cost, that would otherwise end up in landfill. It often sees between 30 and 40 customers coming through its doors in one day.

The man began using the service after separating from his daughter’s mother, who receives all the available benefits due to being listed as the main residence.

Resurrected Bites’ community grocery store at New Park is a lifeline to those in need.

He said:

“It’s brilliant. I can work out what my meals are going to be. So for example, last week I got some sausages and a turnip and then I’ve cooked them all yesterday and that’s my next three or four meals. I usually make my meals in advance. That way if there are a couple of days where you run short, there’s always something in the back like the odd Pot Noodle.

“You come here on a weekly basis to stock up. The fruit and veg is brilliant, as not a lot of people eat as much as they should do and it fills a gap.”

The price hike comes after the energy regulator, Ofgem, lifted the maximum rate that suppliers can charge for an average duel-fuel energy tariff by £693 — an increase of 54 per cent.

This is to reflect the fourfold increase in energy market prices over the last year.

Volunteers at Resurrected Bites’ New Park Community Grocery Store.

New Park community grocery manager Sophia Clarke said customers, who come from a variety of different backgrounds, were worried about the impact it would have.

She said:

“There are a lot of people who are coming in to sign-up in preparation for the fact that once the energy bills rise they are not going to be able to feed themselves.

“One lady I spoke to said she was going to lose her house because she couldn’t keep up with mortgage payments and the bills rising.

“I don’t think anyone knows the full extent yet, but we are here to help people and offer advice and support.

“People are just getting back on track after covid and are now being faced with this. When you’re struggling to feed yourself and your children, this is not good news for the many.”

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Foodbank fears

Over at a very busy Harrogate District Foodbank, at Mowbray Community Church, on Westmoreland Street, one woman said she used a pre-pay meter to avoid getting into trouble with her bills.

She said:

“If I can’t afford heating, I don’t have it on. If the bills get too much in April, I’ll just have to put a woolly jumper on or wrap a duvet around me.

“I’m topping the meter up as much as possible in preparation. I’m okay at the moment but when it goes up, I don’t know what will happen. Luckily warmer weather is coming. I don’t know what I would have done if it had happened in the middle of winter.”

Harrogate District Foodbank at Mowbray Community Church, Westmoreland Street.

Another man, who suffered with mental health problems, said he was worried that his landlord would put his rent up as a result of the price hike.

He said:

“I’m worried about it. If it goes up, I’m going to struggle financially again. That makes me anxious. I suffer with my mental health and I’m on benefits and this just plays on my mind. You’re always thinking about it.”

Dawn Pearson, project manager at Harrogate District Foodbank.

Dawn Pearson, project manager at the foodbank, which also provides help and support for people in Knaresborough and Starbeck, said more support from the government was needed.

She said:

“We find with clients coming in that they tend to get some help, for example Universal Credit, but it’s not enough to cover their bills. Or if it is just enough and something unforeseen goes wrong, then they are in debt again. It’s a vicious circle, they never seem to get above where they should be and it’s sad.

“A lot of people are saying they can’t have the heating on or they are only having it on a couple of times a week, or a couple of hours a day. That’s why people are here because they don’t have enough money for food.”

An organisation that combats fuel poverty in North Yorkshire has warned it expects a “huge rise” in referrals this winter, especially in the Harrogate district.

Warm and Well, which is a partnership project between public, private and voluntary sector organisations to reduce the the number of cold deaths, said referrals increased by 196% between July and the end of September compared to last year.

The Harrogate district was responsible for 28% of these referrals in what are usually the quietest months for Warm and Well, which believes the surge in referrals reflects the financial impact of the pandemic.

The organisation said in a statement it “expects a huge rise in referrals this winter as the financial effects of the coronavirus take hold across the region”.

Julia Priestnall, project coordinator for Warm and Well in North Yorkshire, said:

“Our specialist advisers are working very hard to reach out to vulnerable people who are really struggling across the region. As the furlough comes to an end and the inevitable rise in redundancies there is a perfect storm of fuel poverty gathering.

“We have managed to help families in rural areas with properties that are ‘off the grid’ heat their homes when they have had no one else to turn to.”

Project coordinator Julia Priestnall

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Warm and Well, which is managed by Citizens Advice Mid-North Yorkshire and funded by North Yorkshire County Council, helps people deal with energy debt, switching suppliers or applying for emergency energy support.

Its #GearUpForWinter campaign focuses on fuel poverty within rural areas.

The organisation has visited parts of the Yorkshire Dales to help people keep their home warm during the colder season.

To refer yourself of someone you know to Warm and Well in North Yorkshire, click here.