Labour leader to call for a freeze on the energy price cap this autumn
Currently, the price cap is expected to rise to £3,300 in October
Last updated 14th Aug 2022
Labour leader Sir Keir Starmer is expected to call for the energy price cap to be frozen, while families struggle to pay their bills.
He is due to deliver a speech on Monday, and it comes as a leading think-tank warns poorer households will have to reduce their spending by a quarter this winter, to be able to pay for essentials.
The current price cap stands at £1,971 but that is expected to rise to £3,300 in October, which means millions of households could see their bills rise.
Labour's move is expected to put further pressure on the two Tory leadership contenders, Liz Truss and Rishi Sunak, to take action.
Sir Keir Starmer will call for the price-cap freeze when he sets out details of his party's plans, including how they will pay for the measure, according to The Observer.
Specifics of the measure were not available, though Sir Keir wrote elsewhere that the party aimed to end energy "injustice".
Writing in The Sunday Mirror, the Labour leader said: "We would end the injustice that sees people on prepayment meters paying over the odds for their energy.
"And we will set out how we would help people directly this winter in the coming days".
It comes after Sir Keir on Friday said it is "nonsense" to claim his party has not been leading on the cost-of-living crisis.
Last week the party announced it wanted to put a stop to "outrageous" premiums that energy prepayment meter customers face.
Shadow chancellor Rachel Reeves said Labour would end the "unjustifiable" practice that can result in people with energy prepayment meters being charged more than those who pay by direct debit.
Where the cost of living crisis is hitting hardest:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.
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