Cost of living: Reduction of energy bill help criticised by Conor Murphy

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Conor MurphyImage source, PA Media
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Conor Murphy said the cost of living crisis was having a "profound impact" on the most vulnerable in society

The UK government's plan to scale back support for energy bills is "flawed", Northern Ireland Finance Minister Conor Murphy has said.

He made the comments after new Chancellor Jeremy Hunt revealed his financial plans on Monday.

The Energy Support Scheme, which originally capped household energy bills at £2,500 for two years from 1 October, will now be reviewed in April.

Mr Murphy said many households would be worried.

"It is clear the chancellor is firmly on the road back to austerity," he said.

"At a time when public services are under immense pressure the government should be investing in them not indicating spending cuts."

Mr Hunt, who was appointed as chancellor on Friday, said the support would be reviewed so it cost "significantly less than planned".

But he said he would ensure there was enough support for those most in need.

The chancellor added it would be "irresponsible for the government to continue exposing the public finances to unlimited volatility in international gas prices".

'Profound impact'

Mr Murphy called on the government to recognise the "extreme hardship" some of the most vulnerable in society were facing.

"The cost-of-living crisis is having a profound impact on households and families who deserve some certainty around their future financial outlook," he said.

"It is already a stressful time for people, with many facing rising mortgage costs as a result of the chaotic mini-budget."

On Monday, it was announced the government would reverse almost all tax measures introduced in its mini-budget three weeks ago.

It includes shelving planned cuts to the basic rate of income tax to 19%.

The details of an earlier £400 energy support payment have not yet been finalised for Northern Ireland.

However, it will require new legislation to be passed as Northern Ireland has a separate energy system and policies introduced in Great Britain do not automatically apply.