Stop energy price cap going up in April, Labour urge government – as they accuse the Prime Minister of having his head in the sand on the cost of living crisis
With projections showing the cost of living crisis is set to worsen, Labour this weekend revealed a new package to ease the pressure on household energy bills.
Claiming the government is leaving families out in the cold, the party today revealed how their long-term plans for clean power and retrofit could save households up to £1,400 off their annual bills, not just for one year, but for years to come.
And they also set out a package to ease the immediate costs on households expected in April. That package would be paid for by bringing in a proper one-off windfall tax on energy giants – which Labour says the government has so far failed to do, and it would mean:
- A new measure to pass on savings to households immediately, by stopping the energy price cap going up from April. Right now, government plans expose households to a major new spike in prices in April.
- A new “insulation jump start” – a pot of funding that the government could use right now to supercharge home insulation across the country, saving families hundreds off their bills.
- Ending the scandalous penalty imposed on prepayment meter customers, saying they will ensure customers do not pay more than those paying by direct debit, alongside a 3 month moratorium on the forced installation of pre-payment meters.
- Offering off-grid households equivalent support, with funding available for households in Northern Ireland.
It follows Labour’s recent call for the government to rule out a fuel duty rise at the Budget, if OBR projections show it’s affordable.
If there is additional headroom in the upcoming Budget, the party is calling for it to go towards the cost of living crisis as a priority, starting by ensuring that fuel duty will not rise in the Budget.
Labour’s Shadow Chancellor Rachel Reeves outlined the package during her keynote speech at the Fabian’s Conference. She said:
“Millions of households are still looking to a 40 percent increase in their energy bills, in April.
“On a week when temperatures fell below zero, I know many families and pensioners will be feeling the pressure particularly acutely.
“And at the same time, energy companies continue to enjoy record profits. That cannot be right.”
Talking about Labour’s long-term plans that could save households up to £1,400 off annual bills Portsmouth South’s Stephen Morgan MP added:
“With all the challenges people in Portsmouth are facing and with the cost of living crisis taking its toll on our communities, sticking plaster politics is not enough.
“That is why Labour has a plan to reach one hundred percent clean power by 2030 and retrofit millions of homes.
“These policies could save a typical household in our city up to £1,400, generating savings not just for one year but for every year to come.”
Talking about Labour’s immediate cost of living package the Shadow Chancellor said:
“We would hold to that most basic of principles: That those who have profited from the windfalls of war should shoulder their share of the cost, so ordinary people do not have to bear the brunt of a crisis that they did not cause.
“We will extend the windfall tax, closing the fossil fuel investment loophole, and taxing oil and gas profits at the same rate as Norway.
“By backdating this from the start of 2022 – when oil and gas giants were already making historically large profits – we can raise more than £13bn.
“A Labour government would pass those savings onto families immediately to keep energy bills down this year.”
