Sir Keir Starmer sets out Labour’s plan to freeze energy price cap amid cost of living crisis | News about politics

Sir Keir Starmer is expected tomorrow to call for the energy price cap to be frozen this autumn, as households across the UK feel squeezed in the middle of the cost of living crisis.

The Labor leader will say the price cap, which is the maximum the company in England, Wales and Scotland can charge an average customer for energy costs, should remain at £1,971.

Energy analysts have predicted that typical energy bills could rise to around £3,500 in October and more than £4,200 in January.

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And a new report suggests energy bills are set to cost more than two months’ worth of average take-home pay next year unless the government intervenes.

Earlier this week, the Liberal Democrats decided to scrap the energy ceiling.

The Government has already announced that households will receive £400 to help pay rising fuel bills in the autumn.

But Boris Johnson admitted on Friday that the current plans do not go far enough as the pressure on households continues to increase.

The Prime Minister also repeated his insistence that it is up to his successor to “make significant fiscal decisions” after talks with energy chiefs ended with no new measures to ease the cost of living crisis.

Johnson’s successor will not be announced until September 5.

The Prime Minister added that he will continue to call on the energy sector to ease the financial pressures facing struggling families.

Also speaking on Friday, Sir Keir promised to set out the party’s “comprehensive plan” to tackle the cost of living crisis – including rising energy bills – on Monday.

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Boris Johnson said everyone will get help with bills in October

“We need a strategic, a credible plan, and that is exactly what is missing from this government,” he said.

On Thursday, Labor promised to end the “outrageous” premiums faced by customers with pre-paid energy meters.

The party says that the meter policy will help bring energy prices in advance in line with prices for direct load customers, and estimates that it will provide relief to four million households.

It is believed Labor would close the gap between the two price caps and reimburse energy companies for the difference between October and March – at an estimated cost of £113m.

Labor says this will be paid for by a strengthened windfall tax on oil and gas companies.

A Department for Business, Energy and Industrial Strategy spokesperson said: “Prepayment meters remain an effective way for people to pay for their energy use while managing costs and debt, while the energy price cap protects four million customers with prepayment meters from being overcharged by energy suppliers.”

Sir Keir added that: “For the best part of 12 months Labor has been absolutely leading on this issue.”

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Sir Keir Starmer said Labor has been “absolutely leading” on the cost of living crisis

The Labor leader has come under fire, along with Johnson, for taking a holiday at a time of national crisis.

Earlier this week, shadow justice secretary Steve Reed denied that Gordon Brown was leading the party’s policy in Sir Keir’s absence after the former prime minister called for the energy companies to be temporarily nationalizedin his third major intervention this week.

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Labour’s proposal to freeze the energy price cap for the autumn months will be unveiled in a speech by Sir Keir on Monday, according to The Observer newspaper.

It is also reported that Sir Keir will outline how his party will pay for the measure.

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Also on Friday, Chancellor Nadhim Zahawi said options to give extra help to people to ease cost of living pressures will be ‘ready to go’ on 5 September – but, like Johnson, added that it will be up to the new prime minister to make decisions on the matter.

Tory leadership hopes Sunak has unveiled a plan to cut rising energy bills for up to 16 million vulnerable people which he hopes will propel him to 10 Downing Street.

The former chancellor has also said he will pass laws to make Britain “energy independent” by 2045, put in place immediate support for households – especially the most vulnerable – facing skyrocketing energy bills and boost domestic energy supply with the creation of a new energy security group and deregulation in the North Sea to allow gas production to increase over the winter.

Meanwhile, co-leader candidate Liz Truss has said cutting taxes is the best way to help with living costs over the winter.

But the foreign minister has rejected demands for an unexpected tax on oil and gas companies’ profits.

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