Labour calls for emergency budget as energy cap set to top £3,500
The energy regulator is set to approve a record increase in household bills on Friday as pressure mounts for an emergency budget to tackle the cost of living crisis.
The industry price cap, which sets the maximum rate suppliers can charge, is expected to top £3,500 a year from October for the average dual-fuel tariff, an increase of more than £1,500 from April.
The Ofgem announcement, which Labour said would “strike fear” into hearts across the country, will lend new urgency for calls on government to step in to expand on the £15bn package to tackle rising household costs announced in May.
Wholesale gas prices have risen even further since then and touched new records on Thursday, signalling little respite in the relentless rise in energy prices. Experts have predicted that average annual bills could top £5,000 from January with rising power prices pushing inflation up past 18% next year.
Stark data showed that Britons have already fretted over bills this summer despite low energy usage compared with the winter peak. A YouGov poll showed about 40% of 1,700 adults surveyed have struggled with food and energy bills over the past three months. Around three-quarters of those polled said the government is doing too little to help those struggling with the recent rise in the cost of living, including two-thirds of Conservative voters.
The shadow chancellor, Rachel Reeves, said: “The only people resisting measures to help people are the government. We wanted parliament to be recalled ahead of the [Ofgem] announcement but that did not happen.
“We want an emergency budget. We want the government to say what they are going to do. This announcement is going to strike fear into the hearts of families up and down the country. Urgent action
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