Labour’s energy price cap “would have saved families £1,149 over seven years”

Consumers would have saved more than £1,100 each over the last seven years if Labour’s energy price cap had been in force, new analysis has found.

As Labour highlighted the number of families living in fuel poverty, it published figures showing the average consumer would have saved £1,149 under an energy price cap since 2010.

Today Rebecca Long-Bailey, shadow business secretary, said the charges showed “the Tories’ rigged economy in action” but added: “they will do nothing about it.”

Under Labour’s price cap, the average household would see bills no larger than £1,000 annually  – saving around £142 a year in future.

It is estimated that 15 per cent of households are in fuel poverty across Britain, whilst energy company directors of the Big Six pocketed a combined £12m last year, according to Labour research. Fuel poverty is defined as households who have to spend more than ten per cent of their income on energy costs.

Theresa May had pledged to knock £100 off the cost of bills for for 17m customers but this promise has been abandoned, with the Tories now saying they will only act to protect “vulnerable” consumers.

According to the competition and markets authority, Britons are overcharged a staggering £2bn every year.

Long-Bailey said: “Working people are suffering rip-off price hikes by the Big Six energy companies whilst at the same time many bosses continue to carry on paying themselves obscene amounts.

“The next Labour government will take the tough action needed on the energy companies. We’ll impose a hard price cap on energy bills that will immediately end rip-off price increases, and we’re prepared to take on the Big Six to do it. Labour is standing up for the people against the elite.”