theSocialist
Cost of living soars while wages stagnate…
Organise for a real living wage “Power NI becomes latest energy provider to announce major price hike” “Firmus energy 33.57% gas price hike” “Budget Energy and SSE Airtricity announce further increases to electricity prices” These headlines however are only telling us what our bank accounts already show. Inflation in the UK is now forecasted to hit 8% by April. This isn’t just a blip, the Northern Ireland Utility regulator warned that the high gas prices are likely to remain for at least 3 years. Meanwhile the real term basic rate of out-ofwork benefits is at its lowest for 30 years after adjusting for inflation. A perfect storm of inflation, higher energy bills, increase in National insurance and planned tax rises could lead to the sharpest fall in UK living standards since 1956. With 43% of households in receipt of universal credit described as food insecure. For the more than one million people in the UK facing destitution, it’s often neither eat nor heat. A worldwide squeeze on energy supplies has pushed the price of gas up to unprecedented levels. the Russian government has been playing politics with the gas supply to Europe, reducing supply by 25% over the past
year, therefore not filling up Europe’s storage capacity to deal with the winter surge in demand. The invasion of Ukraine will further destabilise the market. The market volatility highlights a structural weakness in overreliance on imported gas. This ‘market’ is inherent to capitalism, the idea that everything is a commodity that can be used to generate massive profits for multinational corporations and their shareholders. The real beneficiaries of the deregulated energy markets have been a few large oligopoly private corporations. These large corporations dominate a captive market, supplying totally uniform goods. Electricity bills have gone up by a third and gas by a half in real terms since the mid-1990s, European gas transmission operators and their parent companies made €4 billion in profits in the first six months of 2021. British Gas profits increased by 44% to 118 million and SSE forecasts profits of nearly £1bn. Maximising profits also means underinvestment in infrastructure such as storage facilities and low carbon technologies to meet future needs. The Rough storage facility in the North Sea, owned by British Gas owner Centrica, provided 70% of the UK gas storage capacity shut in 2017. The entire energy industry should be renationalised and the profit motive removed
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from our essential services. Massive investment is needed in renewable energy and energy efficiency such as insulation in our homes. We need democratic control over our energy systems to end energy poverty and end the climate crisis. The trade union movement must build a united response to the cost of living crisis. The various strikes organised for this week show workers will be forced to take action for real pay rises. The brutal threatment of P&O ferries workers shows how ruthless employers can be in this context. We must adopt the approach that an injury to one is an injury to all
The Socialist Party says: -Solidarity with P&O workers. Nationalise companies which threaten job losses -Fight for real pay rises: For a serious campaigns to win action on pay -Build solidarity and co-ordinated action of al workers currently engaged in industrial action -The trade union movement should build mass protests on cost of living crisis and in defence of public service like our NHS
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