The failure to provide targeted support for households that helps them meet basic energy needs, without subsidising higher levels of consumption, will worsen the gas shortage for the wider economy and increase the risk of stagflation, academics have warned. In a new paper from the University of Cambridge’s Energy Policy Research Group, they called for a pricing scheme for energy which reflects the current scarcity whilst also limiting the impact on household incomes and inflation.
Untargeted bills support will raise risk of stagflation
