UK Edition
Chancellor Rishi Sunak has come under increasing pressure to cut fuel duty and take the heat out of rising energy bills, with at least 50 Tory MPs pressing for a change.
Households face the worst cost of living crisis in more than 50 years, as annual energy bills will rise by £693 on average from next month. The price of gas has soared across Europe and many governments have intervened to alleviate the strain of the cost of living crisis. The Netherlands, Ireland and France have all cut taxes on household energy bills.
The British Government announced it will "take the sting" out of rising costs by offering grants of up to £350 in the form of energy bill discounts to 28 million households from October. The discount will then be automatically recovered from bills in equal £40 instalments over the next five years.
However, critics have said more should be done to reduce costs for motorists, which have risen following Russia's invasion of Ukraine.
The Treasury will take an extra £2bn in revenue from fuel taxes at current prices as motorists pay more to fill their cars. A litre of petrol costs more than £1.70 at some forecourts and the price of diesel has risen by 13p in a week, the fastest increase on record.
Fuel duty, which is currently set at 57.95p on every litre, has been frozen since 2011. A cut to this would be offset by the windfall from the higher take from 20pc VAT added to pump prices. Mr Sunak could also reduce VAT. A drop to 15pc VAT would reduce the cost per litre by about 6p, according to the Royal Automobile Club.
Energy bills are predicted to increase to £3,000 in October. Roughly half of all suppliers in Britain have collapsed since prices began to rocket last autumn and more than two million households have been switched to new providers.
Here’s a look at what support our European neighbours are being given to tackle the energy crisis.
The Netherlands
The Dutch Government stepped in early to help families, cutting taxes on energy bills from January 1 and announcing a programme worth €3.2bn (£2.7bn) this year.
Excise duty has been dropped by 17 cents per litre of petrol and 11 cents per litre of diesel, as well as a cut in the VAT rate on energy. Cuts in energy taxes should save households €400 a year on average, according to estimates. The Government has also earmarked funds for insulation and helping small businesses.
Ireland
Last week, Ireland pledged to cut tax on energy bills, slashing excise duty on petrol by 17p and 13p on diesel. This was done to offset ongoing price increases as well as expected rises, finance minister Paschal Donohoe said.
This follows an announcement last month that Irish households would receive a €200 cut to all domestic electricity accounts and a 20pc discount on public transport costs until the end of the year.
Sweden
Sweden is one of the latest countries to announce measures to ease the burden of the energy crisis. The Nordic country has rolled out a SEK13bn (£1bn) programme to cut taxes on petrol in a bid to shelter households from larger rises in cost.
All car owners will also receive a cash grant from the Swedish Government.
France
French prime minister Jean Castex has announced plans to cut bills by introducing a rebate of €0.15 per litre fuel from April 1. This will last for four months and will cost an estimated €2bn. However, the country has spent €20bn to cut energy bills so far.
The rebate will save €9 for those who fill up a €60 tank, Mr Castex said. The amount will be automatically deducted before drivers pay the bill and petrol stations will receive the difference from the Government.
President Emmanuel Macron announced last October that gas and electricity prices would be capped until the end of 2022 and unveiled plans for €100 petrol vouchers for low-income households to help with domestic energy bills.
The French Government has also capped energy bill rises at 4pc this year for energy giant EDF, which said it expects to take a €26bn hit from the curbs.
Italy
The Italian Government greenlit support measures worth €6bn last month to cut levies on energy bills. This adds to €10bn that had been set aside in July 2021 to tackle rising oil and gas prices.
Electricity prices in Italy rose 55pc at the start of the year and gas prices by 42pc as the country’s energy regulator Arera hiked costs.
Norway
The Norwegian Government has rolled out some of the most generous plans, introducing a subsidy to cover 80pc of electricity bills where the market price is above 70øre (6p) per kilowatt-hour.
This was due to run until April this year but has been extended until March 2023, its government confirmed last week. The scheme applied a cap on consumption at 5,000 KWh per month and has been designed to target those with the most expensive bills.
Germany
Germany’s ruling parties have also acted to protect households from the worst of the price increases.
A green surcharge levied on electricity bills will be scrapped, saving the average household an estimated €150 euros a year. The Government is also offering grants to low-income households and increasing the commuter allowance.