The cost of living crisis deepens
New Ofgem methodology was announced this week showing how we will see an 81% price cap rise in October and a further 19% increase in January. This will mean an average bill will come to approximately £4,266/yr.
If swift action isn’t taken, it will spell disaster for so many. That is why the Labour Party called on the Government to use yesterday’s meeting with oil and gas giants in Downing Street to close a major tax loophole in the windfall tax. This was an opportunity to make real changes to lives of millions of people. I was extremely disappointed to see no announcements brought forward by government as a result of this meeting.
It is my firm belief that those with the least, shouldn’t pay more to heat their homes and turn on their lights. But under the Tories, they do. This isn’t right or fair. Labour has been clear from the start. We would take immediate action by cutting VAT on home energy bills. Unlike the Tories, our commitments are fully funded. We would pay for that by not going ahead with the government's investment allowance, but by backdating the windfall tax money to the very oil and gas companies making excess profits.
Second, we would deliver the long-term plan for our energy security, which has been left weakened by a decade of failed Conservative energy policy. This means rapidly investing in the clean, home-grown, cheap forms of renewable and nuclear power that can cut bills.
And we would deliver a national warm homes plan to insulate as many homes as possible before next winter. This would save households up to £400, cut gas imports, and create good jobs across the country.
I was also pleased to see our Shadow Chancellor, Rachel Reeves, announce this week that under a Labour Government, we would finally end the injustice that sees people with energy prepayment meters paying over the odds for their gas and electricity. This means that the 4 million people who pay for their energy in advance – often those who are on the lowest incomes - will be charged the same as those who pay by direct debit.
We’re in the midst of an energy emergency that is only going to get worse. A crisis like this requires strong leadership. Labour will take the action that’s needed to get us through this national emergency, and build the stronger, more secure economy Britain deserves.