Labour can save us 3 times more

PEOPLE will pay more than three times more for their energy under the Tory scheme to reduce soaring costs than they would under Labour’s plan.

Chancellor Rishi Sunak’s formula means low income households will be hit for at least £334 extra when the price cap rises next month.

But Shadow Chancellor Rachel Reeves claims she could get that down to £93.

Mr Sunak last week announced a cut of £150 in Council Tax bands A to D and a £200 loan to all households using electricity. Some will also get an extra £10 on the Warm Homes Discount.

But Labour says it could hand £400 to 9million poorer families as well as £200 on average to every household.

Writing (below) for today’s

Sunday Mirror, Ms Reeves said: “The Wonga Chancellor is giving with one hand now, to take it all back later.”

The global rise in wholesale energy prices has already led to 27 energy suppliers going bust and lifting the cap could see bills rise 46%, from £1,277 to £1,865 a year.

National Energy Action predicts that could push an additional 1.5million households into fuel poverty.

Labour says the answer is to scrap VAT on domestic energy bills for a year, increase the £140 Warm Homes Discount to £400 and expand it to nine million eligible homes.

That would be paid for by a 10% windfall tax on North Sea oil and gas and, coupled with extra receipts from other taxes, would raise £6.6billion.