Senin, 20 September 2021

Killamarsh deaths: Family's tribute to children found dead at house - BBC News

Jason Bennett with his children
Facebook

The family of two children, who were found dead along with their mother and another child at a house in Derbyshire, have paid tribute to them.

Jason Bennett said he was heartbroken at the loss of daughter Lacey, 11, and son John Paul, 13, as he laid flowers at Chandos Crescent, Killamarsh.

A 31-year-old man from Killamarsh, who was known to the family, has been arrested on suspicion of murder.

The third child has been named as Connie Gent, 11, from Sheffield.

It is believed she was Lacey's friend and had been in the house for a sleepover.

Derbyshire Police said they were called to the house at 07:26 BST on Sunday after concerns were raised about the safety of a man.

They found the bodies of the three children, along with that of 35-year-old Terri Harris, who was Lacey and John Paul's mother.

At the scene today, Mr Bennett told Sky News: "I'm broken, I just want to kiss my babies.

"I just want to kiss them and hold them. TikTok Queen and my beautiful boy, they were beautiful."

In a message posted on Facebook earlier, he said "life will never be the same".

The children's grandparents, Debbie and Trevor Bennett, also arrived at the scene to leave flowers.

Mrs Bennett said: "They were beautiful, well mannered kids. Terri was a beautiful and wonderful mother.

"Their dad was on holiday in Devon. He had to drive home knowing he has lost his children.

"I don't know how he's going to come through this."

Mr Bennett added: "He's going to need a lot of help and our strength for him.

"I've only spoken to him on the phone and it breaks my heart to hear him like that."

Terri Harris
Facebook

Mrs Bennett said Lacey was a West Ham fan and John Paul liked TikTok and computers.

The Outwood Academy City school in Sheffield confirmed it was closed following the "tragic incident" involving three of its students.

In a statement on Twitter, the school said: "It is with great sadness that the academy will be closed today.

"A tragic incident has taken place in the community involving 3 of our students. We will however be open to any students who need our support.

"Our thoughts are with all those affected by this sad news."

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Candle being lit at church

At the scene: Caroline Lowbridge, BBC News

Killamarsh is a community in mourning and disbelief, according to the Rev Canon Helen Guest, rector at St Giles Church.

"We can't believe this tragedy has happened in our community and it's literally a stone's throw from where I live," she said.

The church opened this morning so that people could write in a book of condolences and light candles to remember the woman and three children who have been killed.

"So far we've had a gentle flow of people who are coming in," said the rector.

Many of those arriving to pay their respects had young children themselves. One of the mothers had tears in her eyes after lighting a candle.

"My thoughts just go out to the whole family," she said.

"It's such a close knit community I think it has affected everybody. I have three children and it was a very anxious time yesterday, not knowing what was happening."

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Police on Chandos Crescent, Killamarsh
PA Media
Flowers left at Chandos Crescent

Derbyshire Police's chief constable Rachel Swann said the deaths were an "understandably shocking event that has deeply affected the local community in Killamarsh, as well as colleagues, family and friends in Sheffield."

She thanked the officers who arrived to the scene "in such a difficult situation" and added: "While understandably worrying and upsetting, this is believed to be an isolated incident in which those involved were known to one another and nobody else is being sought in connection with the deaths."

She said officers were particularly keen to speak to anyone who was in Chandos Crescent between 21:30 BST on Saturday and 07:30 BST on Sunday, and had any information that could help with their investigation.

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2021-09-20 16:47:41Z
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US to relax air travel restrictions for vaccinated foreign passengers - Financial Times

Passengers who are fully vaccinated against Covid-19 will be able to fly to the US from anywhere in the world from November, the Biden administration has announced, bringing an end to the series of travel bans first imposed by Donald Trump 18 months ago.

The White House said on Monday that travelers would have to show proof of having been fully vaccinated and a negative test taken in the previous three days, starting in early November. They will also have to wear a mask for the journey and to share their telephone number and email address for contact tracing.

Since last year, people without US citizenship, green cards or specific exemptions have been banned from travelling to the US if they have been in the UK, Ireland, the Schengen area, China, India, Iran, South Africa or Brazil in the previous 14 days.

The US announced the new system just as foreign leaders arrive in New York for the UN General Assembly, and a day before Joe Biden, US president, is due to meet the British prime minister Boris Johnson at the White House.

“This new system allows us to implement strict protocols to prevent the spread of Covid from passengers flying internationally to the United States. Requiring foreign nationals travelling to the United States be fully vaccinated is based on public health,” Jeff Zients, the head of Biden’s Covid-19 task force, said on Monday. “This is based on individuals rather than a country-based approach.”

Johnson tweeted on Monday that the move was “a fantastic boost for business and trade, and great that family and friends on both sides of the pond can be reunited once again.”

The travel bans were first put in place by Trump last year as his administration tried to slow the spread of Covid-19. He removed them on his final day in the White House but they were immediately reimposed by Biden.

The Biden administration had been cautious about reversing the bans, despite heavy pressure from London and Brussels, as the contagious Delta variant of coronavirus spread rapidly.

The US Centers for Disease Control is drawing up a list of which vaccines will be accepted by the US. The Food and Drug Administration has authorised vaccines made by BioNTech/Pfizer, Moderna and Johnson & Johnson.

Officials said the AstraZeneca vaccine, which has been used widely in the UK and EU, is also likely to be accepted. But it is not yet clear whether other vaccines, such as those used in China and Russia, will be accepted by US authorities.

Those involved in clinical trials for vaccines that are not yet approved in the UK will also be allowed to enter the US, a policy that will apply to about 40,000 people.

Shares in IAG, the owner of British Airways, jumped more than 10 per cent on Monday afternoon to trade at 165.3p mid-afternoon in London, as investors cheered the prospect of a return to transatlantic travel. Sean Doyle, BA chief executive and chair, said the opening will “provide a huge boost to Global Britain as it emerges from this pandemic”.

“BA-owner IAG is a clear winner from this as its transatlantic business has been all but mothballed since the grounding of its jets due to the US policy,” said Neil Wilson, chief market analyst for Markets.com.

Other airline stocks rose following the news, including low-cost carrier easyJet, which climbed 3.4 per cent in London. Air France’s shares were trading 6.7 per cent higher in Paris, while Lufthansa gained 5.3 per cent.

Paul Charles, an adviser to several travel companies including Finnair and Tourism Ireland, described the reopening of travel for fully vaccinated passengers between Europe and the US as “probably the best news for the travel sector yet during the pandemic”. 

“It’s an early Christmas present for BA, Virgin Atlantic and Aer Lingus who can’t fully recover until the transatlantic corridors open up,” he said. Tim Alderslade, chief executive of Airlines UK, an industry association that represents carriers including BA and Virgin Atlantic, hailed it as “major breakthrough”. 

Despite the more positive outlook for airlines, Wilson cautioned that there were still “lots of caveats and reason to be cautious” given remaining uncertainties, for example over what vaccines will be acceptable and whether children will need to have vaccine passports. 

US airlines including American, United and Delta welcomed the news, although their stocks did not respond as robustly as their UK and European counterparts. Although the reopening helps carriers on both sides of the Atlantic, Raymond James analyst Savanthi Syth said, it disproportionately benefited UK and European airlines, which sell 60 per cent of their tickets in their home markets.

If restrictions are lifted quickly enough, travellers should be able to book tickets for Christmas, and possibly Easter, she said.

Additional reporting by Claire Bushey, Sylvia Pfeifer, Alice Hancock and Matthew Rocco

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2021-09-20 14:15:28Z
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M25 protests: Arrests made as Insulate Britain activists block motorways - BBC News

Insulate Britain protest at J18 M25
Insulate Britain

Forty-one people have been arrested after climate activists held fresh motorway protests.

Insulate Britain blocked the anti-clockwise exit slip road at junction 18, Chorleywood, Herts, on Monday.

A separate protest took place near junction four (Stanborough Interchange) of the A1(M), near Hatfield.

A third incident saw Kent Police prevent protesters from gaining access to the M25 carriageway at junction 1a, the Dartford River Crossing.

The force said officers attended at 08:30 BST and arrested 12 people on suspicion of conspiracy to cause a public nuisance.

Hertfordshire Police said 13 people were arrested at the M25, where the road had been partially reopened, and 16 at the A1(M).

The force said officers had been called to the M25 at 08:12 BST and to the A1(M) protest just minutes later.

Insulate Britain protest at J18 M25
Insulate Britain

Several people at both protests had been glued to the carriageway.

A diversion is currently in place at the A1(M).

Ch Supt Nick Caveney said: "Protesters have made it clear that they intend to continue causing disruption.

"Not only is purposely blocking a highway incredibly dangerous, it also affects thousands of members of the public who are stuck in delays as a result."

Insulate Britain protest at J18 M25
Insulate Britain

He said the force had "robust "plans in place to minimise disruption and officers had been on the scene "within minutes".

In a tweet, Insulate Britain, which is calling for government action on home insulation, said blue paint had also been poured on to the road during the protest at the M25, "leading to further disruption".

Insulate Britain protest at J18 M25
Insulate Britain

One of the protesters, who did not want to be named, told BBC Three Counties Radio the blockade had been about "the millions of lives we are going to lose not just here, but everywhere, if we don't do anything".

He said: "The scale of what is coming with the climate crisis forces us to take action.

"The measures are disruptive and they unfortunately have to be. This is no fun doing this. We are running rapidly out of time.

"We are stepping up because the government is critically failing."

He said further blockades were planned and that protesters were willing to go to prison to make their point.

In a letter to the Highways Agency, Insulate Britain said it was "entirely proportionate to create disruption" to keep the government to "its legal obligation of staying below 2C".

Prior to the protest, the group had also called for Highways Agency to reduce the speed limit on the M25 ahead of the blockade.

The BBC is not responsible for the content of external sites.View original tweet on Twitter

A statement from the group on Sunday had said: "Insulate Britain are asking the Highways Agency to review their previous decision not to reduce speed limits, even though they had been made aware that major disruption will be taking place.

"Given that this is a standard safety procedure when hazards occur on the motorway, Insulate Britain is surprised it has not formed part of the response to the campaign."

In response to previous Insulate Britain protests, the government said: "People's day-to-day lives should not be disrupted, especially on busy motorways where lives are put at risk and resulting traffic delays will only add to vehicle emissions.

"We are investing £1.3bn this year alone to support people to install energy efficiency measures, and our upcoming Heat and Buildings Strategy will set out how we decarbonise the nation's homes in a way that is fair, practical and affordable."

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2021-09-20 09:18:39Z
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Northern line extension: Two new Tube stations open - BBC News

Battersea Power Station

Two new Tube stations have opened in the first major expansion of the London Underground this century.

The first train on the new Northern line route departed from Battersea Power Station at 05:28 BST following a £1.1bn project.

It called at the other new station, Nine Elms, before reaching the existing station of Kennington.

London mayor Sadiq Khan said the services would play "a major role" in the capital's recovery.

Public transport enthusiasts surge into Battersea Power Station underground station as the gates open for the first time on 20 September 2021 in London, England
Getty Images

Mr Khan said he was "proud and grateful" to be joined by Transport Secretary Grant Shapps on one of the first trains to serve Battersea Power Station.

The pair have been embroiled in a long-running row over funding for Transport for London (TfL).

He said: "It's great to see the difference teamwork makes, it's great to see the difference investing in infrastructure makes in relation to unlocking jobs and homes.

"Most of the things we're using today were built around the country. Every pound we spend on the Underground, 55 pence goes to the rest of the country."

This is the first major expansion of the Tube since the Jubilee line was extended in the late 1990s.

The Greater London Authority borrowed £1bn for the project, which will be funded through business rates from the local area and about £270m of contributions from developers.

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At the scene

By Harry Low, BBC London

First passengers at Battersea Power station

A band of train enthusiasts, TfL staff and journalists gathered before sunrise beneath the silhouette of Battersea Power Station.

When the gates opened to the public for the first time just after 05:20 BST, more than 100 people bustled down to the platform to catch the first service to Kennington.

Amid the blur of high-vis jackets and Tube map facemasks, the plethora of smartphones indicated this was a journey worth documenting.

Although the trains themselves were not new, the first stop showcased Nine Elms - a second freshly constructed Tube station - to bring the south London station tally above 30 for the first time.

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Major construction on the two-mile twin railway tunnel between Kennington and Battersea began in 2015.

There will initially be a peak-time service of six trains an hour, falling to five an hour during off-peak periods.

The frequency of services will be doubled by the middle of next year.

New TfL Map
TfL

TfL estimated that the new services would support 25,000 new jobs and 20,000 new homes.

TfL commissioner Andy Byford said he was "stunned" and "couldn't be more proud".

He said: "The biggest thing is seeing the delight on customers' faces. That makes this all worthwhile. It's a bit like a butterfly emerging from its chrysalis."

Billions of pounds of investment have been pumped into the area in recent years, including through the redevelopment of Battersea Power Station for residential and business use, and the building of the new US embassy in Nine Elms.

The opening of two new stations brings the total number on the network to 272.

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2021-09-20 07:31:32Z
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Boris Johnson to press Joe Biden to lift the ban on Brits travelling to the US - Daily Mail

Boris Johnson will press Joe Biden to lift the ban on Brits travelling to the US so holidays can restart and families can reunite before Christmas

  • PM is due to hold talks with President Joe Biden at the White House tomorrow 
  • Mr Johnson will call for Brits to be allowed to travel to the US as soon as possible 
  • The UK reopened its doors to Americans post-Covid in July as 'goodwill gesture' 
  • But to the concern of Number 10 the American authorities have not reciprocated

Boris Johnson will press Joe Biden to lift the ban on travel from the UK during talks at the White House tomorrow.

Britain dropped restrictions on fully vaccinated US visitors in July as a 'goodwill gesture'.

But, to the concern of ministers - and anger of the travel industry - the US has yet to reciprocate.

Mr Johnson and President Biden set up a dedicated working group in June to take the issue forward, following talks at the G7 summit in Cornwall.

But progress on the issue is said to have stalled.

Mr Johnson arrived at New York's JFK airport last night ahead of a meeting with the President

Mr Johnson arrived at New York's JFK airport last night ahead of a meeting with the President 

At present, travellers from the UK cannot visit the US without special permission from the United States government.

The ban meant that Tennis star Emma Radacanu's family were unable to travel to New York this month to watch her spectacular victory in the final of the US Open.

What are the new travel rules from October 4 and how do they compare to the current traffic light system? 

As of October 4, the Government's travel traffic light system is being replaced with a simplified two-tier 'go/no-go' scheme. 

There will be a 'red list' of banned countries and a 'rest of the world' list for everywhere else.

Travel to and from nations in the 'rest of the world' list will be easier but there will be different rules depending on vaccination status. 

This is how the new system will work: 

Travel from the 'rest of the world' if you are fully vaccinated

Travellers must book and pay for a day two coronavirus test to be taken after arriving back in England.

They do not need to take a pre-departure test before coming back to the country or take a day eight test. There is no quarantine requirement – assuming the day two test is negative.

Travel from the 'rest of the world' if you are not fully vaccinated

Travellers must take a pre-departure coronavirus test before coming back to England. 

They must also book and pay for a day two and day eight test. 

After arriving in England they must quarantine at home for 10 days.

Travel from red list countries

Normal travel from these countries remains banned and only UK nationals can return from them.

Travellers must take a pre-departure test. They must also book and pay for a Government-backed quarantine hotel package.

The stay in hotel quarantine will cost more than £2,000 and will involve two tests.

The 'red list' rules apply regardless of vaccination status. 

WHAT IS CURRENTLY IN PLACE? 

RED: Travel to the UK from a red list country is banned for non-UK nationals. Britons returning to the UK must take a pre-departure test and book a ten-day stay in hotel quarantine including tests at a cost of £1,750. Countries include Brazil, Turkey, Bangladesh and South Africa.

AMBER: A pre-departure test is required before heading to Britain while non-vaccinated people have to quarantine for ten days at home and book tests on day two and day 8. They can also pay for a day 5 test under the 'test to release' scheme. The fully-vaccinated do not have to isolate but they do have to book a day 2 test.  Countries include Italy, Spain, Portugal and Greece. 

GREEN WATCHLIST: This is a category for countries which are at risk of losing their green status (see below). Countries include Barbados, Croatia and Israel.

GREEN: Returning travellers must take a pre-departure test and book a day two test as well. Quarantine is not required for anyone unless the test is positive. Countries include Bulgaria, Canada , Iceland and Malta.

It has also deprived the beleaguered aviation sector of one of its most important and lucrative markets.

The US is continuing to ban travel from the UK on Covid grounds. But Mr Johnson will argue that the effectiveness of the UK's vaccination programme means there is no justification for maintaining restrictions on fully jabbed travellers.

British Airways chief Sean Doyle told the Daily Mail: 'The Prime Minister is doing something this week that remains out of reach for most Britons - visiting the US.

'We need the PM to urgently make the case for re-opening the transatlantic corridor during his meeting with President Biden and move the Atlantic Charter they discussed at the G7 back in June to the top of the agenda.

'For 18 long months friends and family have been separated and the UK economy has suffered.

'Aviation must be allowed to play its part in kick-starting the British economy, re-igniting business and tourism and re-establishing the crucial links we have with the US.' 

The move to reopen travel corridors comes despite a SAGE scientist warning ministers are risking importing dangerous new Covid variants by 'abandoning' the testing system at the same time. 

Professor Stephen Reicher, a member of the subcommittee advising on behaviour, said officials could have improved the system which saw 'absurd rates' charged for PCR tests by doing such testing through the NHS.

The traffic light system is to be replaced from October 4 by a single 'red list' of destinations, and those who are fully double-jabbed won't need a pre-departure test before returning from non-red list destinations.

From the end of October, they will also be able to replace the day two PCR test with a cheaper lateral flow test.

Speaking to Sky News's Trevor Phillips on Sunday programme, Prof Reicher said the system around PCR tests has been 'dysfunctional' with 'all the different companies charging absurd rates and not providing a service'.

He said the Government has responded to this 'not by improving the system but by abandoning it entirely', and added that, domestically, there remains 'huge uncertainty' about the effect on virus cases of the return of schools, universities, workplaces and people spending more time indoors in the autumn weather.

On travel, he told Sky News: 'I think it would have been far preferable to keep PCR tests but to improve the system and to do them through the NHS.

'I think it (the relaxation) is increasing risk. I think it does limit, in fact it stops our ability to trace different variants, and increases the probability of infected people coming into the country.

'I think it has increased the risk, quite frankly, and I think we should have improved the system rather than by and large abandoning it.'

Lawrence Young, professor of molecular oncology at the University of Warwick, said: 'Letting our guard down runs the risk of bringing a new variant into the country, such as the Mu variant first identified in Colombia, which could reduce the effectiveness of current vaccines.'

Another scientist said while easing the rules will 'inevitably increase the risk' of infections, high rates in the UK mean travellers could be as likely to catch Covid on a trip to Torquay as one to Turkey.

Dr Simon Clarke, associate professor in cellular microbiology at the University of Reading, said: 'Given the fact that community transmission within the UK is still running at a high level, it seems churlish to put high barriers in the way of international travel when the risks of catching Covid at home are relatively high.'

Under the changed travel system for England, unvaccinated passengers from non-red list countries will have to take a pre-departure test, and a PCR test on days two and eight after returning.

However, travellers who have a valid vaccination certificate from 17 additional countries and territories, including Japan and Singapore, will be treated as if they had been jabbed in the UK.

Meanwhile, eight countries, including Turkey, Pakistan and the Maldives, are being removed from the red list with effect from 4am on Wednesday.

Professor Stephen Reicher, a member of the subcommittee advising on behaviour, said officials could have improved the system which saw 'absurd rates' charged for PCR tests by doing such testing through the NHS

Professor Stephen Reicher, a member of the subcommittee advising on behaviour, said officials could have improved the system which saw 'absurd rates' charged for PCR tests by doing such testing through the NHS

Travellers from Egypt, Sri Lanka, Oman, Bangladesh and Kenya will also no longer be required to hotel quarantine from that date.

Transport Secretary Grant Shapps said the measures were intended to strike the 'right balance', simplifying the system while managing the public health risk 'as No.1 priority'.   

The unvaccinated face even tougher rules under the new regime in a bid by ministers to encourage more people to get jabbed.  

Even when returning from countries on the 'go' list, they will have to isolate at home for ten days and take PCR tests on days two and eight.

They will still have the option of taking an extra post-arrival PCR test on the fifth day to be released from self-isolation early.

Reacting, Tim Alderslade, chief executive of Airlines UK, said: 'By reducing the number of red-list destinations and scrapping PCR testing, ministers have paved the way for people to get away this October half-term and into the winter following 18 months of uncertainty.' 

John Holland-Kaye, chief executive of Heathrow, added: 'This simplification of the travel rules is very welcome for businesses and families across the country but the decision to require fully vaccinated passengers to take more costly private lateral flow tests is an unnecessary barrier to travel, which keeps the UK out of step with the rest of the EU.'

Ministers today announced they are replacing the current international travel traffic light scheme with a simplified 'go and no-go' system as they also scrapped pre-departure tests for fully-vaccinated travellers returning to England

Ministers today announced they are replacing the current international travel traffic light scheme with a simplified 'go and no-go' system as they also scrapped pre-departure tests for fully-vaccinated travellers returning to England

The shake-up will apply to England only, with Scotland last night saying it would not follow suit. 

The Scottish Government has said it will drop the traffic light system but will not follow England when it comes to testing requirements and PCR tests will still be required.

The Welsh Government said it will consider the UK Government's proposed changes, but health minister Eluned Morgan has warned they could 'weaken the line of defence on importing infection'.

In Northern Ireland, the traffic light system will change from October 4, with a single 'red list' of destinations, while proposed changes to pre-departure and post-arrival testing will be discussed by Stormont ministers next week.

Meanwhile, booster jab invites are being sent out to more than a million people to 'strengthen the wall of defence' against coronavirus created by the vaccines.

People will receive texts from Monday, while letters will be sent to those who are eligible later in the week, NHS England said. Some 1.5million people will be contacted and encouraged to use the national booking service. 

Britain's Covid outbreak is continuing to flat line despite the return to schools with new daily infections increasing week-on-week for the first time in ten days, according to official statistics

Britain's Covid outbreak is continuing to flat line despite the return to schools with new daily infections increasing week-on-week for the first time in ten days, according to official statistics

NHS England said the vaccination of children aged 12 to 15 will also begin 'shortly'. Those eligible for boosters include anyone aged 50 and over, people living and working in care homes for the elderly, and frontline health and social care workers.

All those who are clinically extremely vulnerable and anyone aged 16 to 65 in an at-risk group for Covid (who were included in priority groups one to nine during the initial vaccine rollout) will also be eligible for a jab.

The Joint Committee on Vaccination and Immunisation (JCVI) has said people should receive their booster dose at least six months after they received their second coronavirus jab.

While there is a preference that people should get the Pfizer jab as a third dose, regardless of which jab they were initially given, the JCVI said half doses of the Moderna jab could be used as an alternative.

There are also booster campaigns in Wales, Scotland and Northern Ireland.

Health Secretary Sajid Javid said: 'It is excellent that getting your booster jab has now become even easier thanks to the opening of the National Booking Service to those eligible.

'Booster doses are an important way of keeping the virus under control for the long term and will protect the most vulnerable through the winter months.

'I urge everyone who receives a letter or text to get their jab as soon as possible so we can strengthen the wall of defence across the country that each vaccine brings.'

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2021-09-20 02:29:47Z
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Minggu, 19 September 2021

Killamarsh deaths: Man arrested after four bodies found - BBC News

Chandos Crescent
YorkshireLive

A murder investigation has been launched after four people were found dead at a house in Derbyshire.

Officers were called to a property in Chandos Crescent, Killamarsh, at 07:25 BST on Sunday after concerns were raised about the people living there.

A man has been arrested and police said they were not looking for anyone else in connection with the deaths.

Specially-trained officers are liaising with the families of the deceased, said a spokesperson for Derbyshire Police.

Multiple emergency vehicles have been at the scene throughout the day, with local people describing their shock at the large police presence.

The force asked that people "avoid speculation and allow for space at this distressing time".

Chandos Crescent
YorkshireLive

Det Ch Insp Rob Routledge, who is leading the investigation, said: "We would really like to hear from anyone who saw or heard anything suspicious in the early hours of this morning, or has any information which they think could help with our inquiries.

"No matter how small you think that information may be, please do get in touch with us.

"It is understandably a worrying time for the community, and we would like to thank them for their patience and understanding at this time. It was important to us that close relatives of those involved were informed before we could give further details about the incident.

"Residents will continue to see a large police presence in the area, and patrols are being carried out for reassurance. If you do have any concerns, please don't hesitate to speak to them."

North East Derbyshire MP Lee Rowley described the deaths as "terrible and hugely tragic".

"Our condolences to the family and our thoughts are with them," he said on Twitter.

"Killamarsh is such a lovely, close knit and warm community and I know that many residents will be shocked and worried by the news."

"I've no doubt that the village will pull together at this difficult time," he added.

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2021-09-19 23:27:49Z
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UK energy groups ask for state ‘bad bank’ to weather gas crisis - Financial Times

The UK’s largest energy suppliers are requesting a multibillion-pound emergency support package from the government to help them survive the crisis sparked by high gas prices, including the creation of a “bad bank” to absorb potentially unprofitable customers from failing rivals.

Kwasi Kwarteng, UK business and energy secretary, is holding emergency talks with regulator Ofgem on Sunday and is due to meet energy suppliers face-to-face on Monday, amid fears that dozens of smaller challenger companies could go bust in the coming weeks due to record wholesale costs of natural gas and electricity.

People familiar with the weekend talks say the largest energy suppliers are asking the government for substantial support to handle potentially millions of customers from failing companies and may require the creation of a “Northern Rock-style bad bank” to house customers they could not take on without losing money.

While no decision has yet been taken, the proposals to the government reveal the scale of support the industry believes will be required to avoid causing long-term damage to the sector should a large number of energy suppliers fail in the coming weeks.

Kwarteng is said to be examining the proposals and has accepted that significant intervention may be necessary, fearing the existing contingency plans may not be sufficient. Allies said he was looking at “Plans C, D and others”.

“We need a lot of contingency plans in place,” said one ally of the business secretary.

Most existing household energy tariffs are not enough to cover the cost of supplying new customers, making large energy companies extremely reluctant to take them on without government support, potentially including state-backed loans or other measures.

Line chart of Day-ahead price at the UK National Balancing Point (£ per therm) showing UK gas prices soar

Talks with the government had focused on three different approaches, four people familiar with the situation confirmed, while stressing that ministers were “keen not to reward failure”.

One suggestion is for the formation of a “bad bank” which would take on unprofitable customers from failed suppliers — a move reminiscent of measures taken at the peak of the financial crisis in 2008 and one designed to avoid weakening otherwise strong companies.

“This could get the industry through the current period of crisis,” one person familiar with the talks said.

“By parking the problem in a bad bank, it would make it easier to sort out the immediate crisis and then take stock longer term. It would allow the government to handle several suppliers going bust at the same time.”

A second person, however, cautioned that such an approach could be difficult to manage in practice, especially given that suppliers all run on different operating systems. There would also be a question of whether Ofgem would take responsibility for customer care and handling complaints. 

Another option would see the government underwrite debt for the larger suppliers, if they were to incur losses by taking on customers. 

A third route would see Ofgem stepping in and, instead of shifting the customers of the failed suppliers to another provider, would administer the company through the immediate crisis, effectively leading to its nationalisation, with the government on the hook for any losses.

Two people familiar with the talks said the cost of the eventual package could run to billions of pounds for the government given the number of companies that are expected to fold in the coming weeks.

Five smaller suppliers have already gone out of business since the start of August as surging wholesale prices have left companies with insufficient hedging strategies or weak balance sheets unable to cover the cost of the energy they had committed to supply.

There are growing concerns among chief executives of the bigger suppliers that the five, including People’s Energy and Utility Point, with 570,000 domestic customers between them, are just the tip of the iceberg. Further failures in the next seven to 10 days could see 1m customers needing to be transferred to new suppliers.

The business secretary has been warned by the industry that out of 55 companies in the sector, only between six and 10 could be left standing by the end of the year.

Energy company executives say each customer they absorb under Ofgem’s “supplier of last resort” system could lose them hundreds of pounds a year, making it unfeasible to take on millions of customers should the worst fears about the number of failures in the industry pan out.

The cost of buying enough wholesale gas and electricity in the spot market to supply an average household is estimated at about £1,600 a year, while the Ofgem-set price cap on energy bills is at present £1,277, having already been raised by £139 last month.

Energy suppliers have said they are effectively subsidising customers at current price levels.

Octopus Energy, one of the fastest growing energy providers in the UK — which is now considered a large supplier — said on Sunday that a number “of less prudently run or less well-backed suppliers have folded with rising gas prices and some more are expected to follow”. It has joined other companies, including Eon, in calling for the government to move environmental levies from electricity bills to help lower customer bills.

While energy supplies for existing customers have largely been hedged in the futures market by the largest energy companies, allowing them to remain profitable, this is not possible in relation to new customers as they have not been able to plan ahead for how much gas and electricity they will need to buy from the wholesale market.

“Energy suppliers have already provided hundreds of millions of pounds in financial assistance since the start of the pandemic,” said Emma Pinchbeck, chief executive of industry body Energy UK.

“The industry will continue that support this winter, during what is an extremely challenging time for the sector itself — as has been shown by more suppliers exiting the market this week.”

The gas crisis has reverberated across UK industry including threatening food supplies. The meat industry is facing an acute shortage of carbon dioxide after surging gas prices prompted CF Industries, a US company, to suspend production at two large UK fertiliser plants last week.

Kwarteng met CF Industries boss Tony Will on Sunday to discuss options for restarting production at the plants in Cheshire and Teesside, including the possibility of government financial support to avoid exacerbating the supply-chain crisis.

CO2 is a byproduct of fertiliser production, but it is currently uneconomic for CF to make it. Kwarteng will on Monday discuss with cabinet colleagues a temporary financial package to reopen the plants, to help resume production of fertiliser and CO2.

Gas prices in Britain and Europe have hit repeated highs in recent weeks as traders fear the continent is heading into winter with low stocks following lower supplies from Russia as well as domestic sources as gasfield operators undertake maintenance delayed from last year.

Kwarteng said in a series of tweets on Sunday that it was possible a “special administrator” would be appointed at companies where finding a supplier of last resort “was not possible”. “The objective is to continue supply to customers until the company can be rescued or customers moved to new suppliers,” he added.

But the business secretary is said by colleagues to be worried about the impact of the crisis on consumers and also on future competition, if the fallout from the shock sees a return to a more concentrated market, once again dominated by big players.

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2021-09-19 17:32:04Z
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