Labour has unveiled a comprehensive plan to tackle the Tory cost-of-living crisis and slash household energy bills by over £1000. We’re calling for this autumn’s rise in the energy price cap to be stopped, paid for by extra tax from oil and gas giants who are making obscene profits.
With forecasts of household energy bills at £3,420 in October and well over the £4000 mark in January the situation is becoming desperate. Neither Truss nor Sunak have any interest in resolving the crisis. As I said to LBC News last week – “𝘓𝘪𝘻 𝘛𝘳𝘶𝘴𝘴 𝘴𝘢𝘪𝘥 𝘴𝘩𝘦 𝘥𝘰𝘦𝘴𝘯’𝘵 𝘵𝘩𝘪𝘯𝘬 𝘵𝘩𝘦 𝘱𝘶𝘣𝘭𝘪𝘤 𝘴𝘩𝘰𝘶𝘭𝘥 𝘨𝘦𝘵 𝘢𝘯𝘺𝘮𝘰𝘳𝘦 “𝘩𝘢𝘯𝘥𝘰𝘶𝘵𝘴”. 𝘉𝘶𝘵 𝘵𝘩𝘦𝘺 𝘢𝘳𝘦 𝘨𝘪𝘷𝘪𝘯𝘨 𝘰𝘶𝘵 𝘩𝘢𝘯𝘥𝘰𝘶𝘵𝘴, 𝘵𝘩𝘦𝘺’𝘳𝘦 𝘨𝘪𝘷𝘪𝘯𝘨 𝘵𝘩𝘦𝘮 𝘵𝘰 𝘵𝘩𝘦 𝘰𝘪𝘭 𝘢𝘯𝘥 𝘨𝘢𝘴 𝘨𝘪𝘢𝘯𝘵𝘴.”
We’d close the loophole in the recent Energy Profits Levy (the Government’s name for the windfall tax) which means companies can claw billions back by investing in fossil fuels, and we are calling for it to be backdated to January. This would raise an additional £8bn of funds to support households in need. By bringing down energy bills in this way, it would also help bring down the rate of inflation down, by around 4%.
Our response to the energy emergency is underpinned by our plans to insulate millions of homes and a “green sprint” for record investment in renewables. You can read more about this and Labour’s latest announcement here.