Starmer brands government absence ahead of energy bill rise “unforgivable”

Keir Starmer has argued that the lack of what the party sees as a proportionate response to the expected hike in energy bills this autumn as “unforgivable” and warned that rising prices will be “devastating” for people across the country.

Commenting ahead of the announcement of the energy bill price cap on Friday, in which the regulator Ofgem is expected to allow annual costs to increase to £3,553 from October 1st, the opposition leader called on ministers to back Labour’s plan.

“Labour’s fully-funded plan to freeze bills and save households £1,000 this winter is a simple matter of common sense and fairness. We will not allow oil and gas giants to make record profits from the suffering of ordinary families and businesses. It’s astounding the government does not understand this,” he said.

The Labour Party announced last week that it would freeze gas and electricity prices immediately, keeping the energy price cap at its current level of £1,971 until April – a move it said would save the typical household £1,000.

The party said the proposal could be paid for in part by making changes to the windfall tax, including backdating the tax to include excess profits made since January and closing a loophole allowing tax relief on investment in the North Sea.

“As well as acting to fix the immediate problem, Labour will also bring down bills in the long-term by investing in sustainable British energy and insulating homes across the country,” Starmer said.

His party called on the government earlier this week to reverse “12 years of failure” by adopting its plan to insulate 19 million homes as part of a “national mission” to reduce bills and make the UK more energy independent.

Starmer added: “Families and business owners are worried sick. Everyone is now feeling the harsh reality of the Tories’ failure. The country deserves strong leadership, urgent action and a plan for the future. Only Labour can give Britain the fresh start it needs.”

Labour’s Ed Miliband accused the Conservatives of being “missing in action” on the cost-of-living crisis earlier this month after the government failed to agree any new support measures in a meeting with energy company executives.

The Treasury revealed that Chancellor Nadhim Zahawi and the energy firms had agreed to “work closely” over the coming weeks to “ensure that the public, including vulnerable customers, are supported”. But Boris Johnson has insisted that it will fall to his successor as Prime Minister to make “significant fiscal decisions”.

Tory leadership frontrunner Liz Truss has expressed strong opposition to expanding the windfall tax, telling attendees at one Tory leadership hustings: “I absolutely don’t support a windfall tax [on the energy companies] because it’s a Labour idea, and it’s all about bashing business.”

Asked last week whether she backed the idea of freezing energy bills, the Foreign Secretary said: “What I worry about is putting a sticking plaster on this to say we will find the money but be in the same situation in six months’ time.”

Rishi Sunak said on Wednesday that he did not think Labour’s plan is the “right plan”. The former Chancellor added: “I think it’s not right to say that it’s fully costed, because I think it’s been widely criticised for its credibility of that costing.”

Consultancy Cornwall Insight released its latest projections for the energy bill price cap on Monday. The company predicted that the cap will rise to £3,553 in October before increasing again to £4,649.72 in January next year.

UNISON warned on Thursday that low-paid workers in the public sector have “nothing left to cut from their budgets” after research found that 31% are skipping meals to make ends meet amid the deepening cost-of-living crisis.

The TUC launched its campaign for a £15 national minimum wage on Tuesday. The federation of trade unions outlined a path for the government to deliver a national rise to a £15 hourly rate for all workers, regardless of their age.