The shadow chancellor for Labour stated that the new energy price cap “will strike dread” into families and retirees, and she asked the government to support her party’s proposal to freeze winter costs.
The Chancellor of the United Kingdom, Nadhim Zahawi, has urged individuals to reduce their energy consumption but added that “help is on the way” to alleviate the burden of rising household bills.
Speaking with broadcasters, he acknowledged that the escalating energy price cap will generate “stress and anxiety for many people,” adding, “The reality is that we should all examine our energy consumption.”
Energy regulator Ofgem said on Friday morning that the price cap for a typical home will increase to £3,549 per year in October, £800 higher than the estimate submitted to then-chancellor Rishi Sunak in May.
As calls for the government to act increase, Mr. Zahawi stated that he is “working flat out” to provide more assistance choices for individuals, but emphasized that the future prime minister would decide what support to provide.
On September 5, either Liz Truss or Rishi Sunak will assume the position.
“I am aware that the announcement of the energy price cap this morning will cause stress and anxiety for many individuals, but help is on the way in the form of £400 off energy bills for everyone, the second installment of a £650 payment for vulnerable households, and £300 for all pensioners,” the chancellor said.
“While Putin raises energy costs in retaliation for our backing of Ukraine’s valiant liberation movement, I am working around the clock to explore more support options.
This will allow the future prime minister to strike the ground running and provide immediate assistance to those who need it most.
Later, Mr. Zahawi stated that the government’s pledged help is “insufficient” and that ministers “ought to do more.”
“We must ensure that this is not a band-aid and that we continue to help the most vulnerable who have no cushion for the long run. I am determined to do this,” he stated.
Mr. Zahawi noted that his goal is to ensure that disadvantaged households in the United Kingdom remain “resilient into next year.”
“Truss and Sunak are unaware”
Sir Keir Starmer condemned the government for being “missing in action” and stated that it is “unforgivable” that ministers had not taken greater measures to assist families during the cost of living crisis.
The Labour Party has proposed a £29 billion emergency plan to prevent winter energy bill increases, which would be partially funded by an extension of the windfall gains tax on oil and gas corporations.
The Labour leader stated, “We have a thoroughly costed, comprehensive strategy for this winter that will freeze these rates, which is great news for so many people who are scared sick today.”
“This plan is completely priced. We’ve heard nothing about it from the government or anyone else.”
Rachel Reeves, Labour’s shadow chancellor, told that the revelation of a price ceiling “will strike dread” into families and retirees, and she asked the government to support her party’s proposal to freeze winter energy prices.
“We can no longer delay action. She stated that this is a national emergency.
Sir Ed Davey, leader of the Liberal Democrats, stated that the increase in the price cap is a “catastrophe” for millions of homes and that freezing price is “the only choice.”
“The only alternative is to freeze energy prices before these increases wreak havoc on our communities,” he said.
Then, a proper plan must be implemented to reduce bills next year.
“While millions of people suffer, Conservatives do nothing.
“The administration has no policy, and Liz Truss and Rishi Sunak have no plan. They have no concept of how painful these energy prices will be for our nation. Simply, they are unfit to govern.”
What have the candidates for the Tory leadership said?
During the most recent Conservative Party leadership debate on Thursday, Ms. Truss stated that if she is elected prime minister, she will utilize an emergency budget to “guarantee support is on the way” in response to rising energy costs.
Ms. Truss has consistently stated that she favors tax cuts over giveaways, prompting criticism that her policies will mostly benefit those with higher salaries.
Similar leadership aspirant Mr. Sunak has stated that he will provide direct assistance to households struggling to pay their bills, but he has yet to specify how much assistance he is willing to provide.
The former chancellor has stated that reducing inflation is his top concern.
On October 1, the cap will go into force for about 24 million households in England, Scotland, and Wales on their default energy tariffs, and it will remain in effect until December 31, when it will be readjusted.
The average yearly cost for the 4.5 million prepayment meter users, who are frequently the most disadvantaged and are already living in fuel poverty, will increase to £3,608.
