Rachel Reeves accused the Tory government of a “dereliction of duty” today after it was revealed that energy bills are set to soar by 80 per cent.
The shadow chancellor called on ministers to follow the Labour Party’s plan to freeze energy bills.
At 7am this morning the energy regulator Ofgem announced the price cap will see the average household’s yearly bill rise from £1,971 to £3,549 in October.
However, not a single minister appeared on national TV or radio on Friday morning to defend the government.
And No.10 has previously said there would be no new support offered before a next prime minister is appointed on September 5.
“Labour are calling for the government to take action to freeze gas and electricity prices during the autumn and winter months and to pay for that with a big extension of the windfall tax. That is the right and the fair thing to do. That is what Labour would do if we were in government now.”
- Rachel Reeves
Labour wants the energy price cap to be frozen at its current level of £1,971 and paid for partly by a big increase in tax on oil and gas company profits.
Reeves accused ministers of being nowhere to be seen in what she described as a “national emergency”.
The MP for Leeds West said people were worried sick about the “astronomical increases” that are “striking fear in the hearts of families” across the country.
“The fact that no government minister is available to come on your programme today is just appalling,” she told BBC Breakfast.
“They are not here to give assurances, they are not here to set out what they are going to do. That is a dereliction of duty.”
Reeves said their plan was “fully costed” and that a Labour government would consider more help if the situation worsened.
She told LBC: “We’ve got a fully costed and fully funded plan to take us through until the beginning of April - to freeze those gas and electricity prices and also to offer additional support for those on pre-payment meters who are paying over the odds.
“Now, we haven’t got a crystal ball. We don’t know where prices will be in April.
“But I think the track record now of Labour in calling for support and standing alongside ordinary families and pensioners and asking for oil and gas companies to pay more is a proven record now.
“When we get to April, if prices are continuing to rise, obviously more action is going to be needed then. This is to give people security over the autumn and winter months.”
Asked about fears that the April price cap could reach £7,272 in April and whether they would expect the cap to be unfrozen at that point, she replied: “No, absolutely not.
“But the chief executive of Ofgem, when he announced the increase in the price cap this morning, says that prices at the moment are incredibly volatile.
“They’re moving around a lot and it wouldn’t be possible to do a costing for a package that takes us beyond April.
“So we are giving certainty to people during these autumn and winter months. And if prices continue to go up in April, obviously we’ll revisit this package of support.”
Earlier this month, Labour leader Keir Starmer announced a £29 billion plan that he said would save the average household £1,000.
However, the charity Full Fact claimed the party had not taken into account that people use more energy in the winter, causing it to underestimate the cost of freezing bills by at least £5 billion, or £340 per household.
Labour sources disputed the analysis and said the party had costed its plans based on consultation with industry regulator Ofgem.
Reeves said she was “confident” about their figures, telling BBC Radio 4’s Today programme: “I have spoken to both Ofgem and Citizens’ Advice about how direct debit payments are calculated.”
The chancellor Nadhim Zahawi has denied that there was a lack of action from government.
He said: “We know Putin has now worked out that actually this is quite a potent lever. You look at what’s happening in Germany and the rest of Europe.
“We need to make sure there’s more support. My preference is for it to be targeted.
“Why? Because it will give us a much longer, more leeway, to be able to face down Putin and send a very important message to him that this is not going to work.”