Media caption,

Long term planning is needed for the energy bills crisis.

The scale of expected rises this winter is justified by the Labour plan to freeze energy prices for all consumers, according to Sir Keir Starmer.

He was in favor of spending £29 billion to keep bills down for everyone.

It would be difficult for many millions to keep up with payments, he said.

He said freezing prices for everyone would help tame inflation.

The low-paid, elderly and disabled will be paid extra money to help with rising bills.

With the government footing the bill to keep the price cap at £1,971 a year for typical households between October and March, Labour thinks the payments should be canceled.

One forecast predicts capped costs could hit $4,200 next year, as energy prices are predicted to soar again this winter.

Labour's plan to freeze the cap would be paid for by extending the windfall tax on oil and gas firms and savings to government debt caused by a lower rate of inflation.

Paul Johnson, director of the Institute for Fiscal Studies, said it was very expensive to protect everyone from price rises.

He said that the Labour scheme would have to be extended past April next year.

"Many, many millions of households are going to really struggle this year, because these are massive hikes", Sir Keir said when asked about the benefits of designing a scheme that protects wealthy households.

He said that the plan also has this advantage of bring down inflation as well.

Sir Keir said it was too early to say what the energy situation would be like next spring when asked about the impact of the scheme on inflation.

Energy price cap graphic

Sir Keir doesn't think that most households will be able to pay bills of over four grand.

Many people will say "look, I may not be the hardest up, but I can't afford bills that high""

Sir Keir called for more government action to bring bills down in the long run.

The government is lurching from crisis to crisis.

We need a Labour government with a long-term strategy soon. We are always in a crisis mode.

Liz and Rishi have sparred over their plans to help people with living costs this winter.

Mr Sunak thinks the current government plans should be extended by spending around £5 billion on targeted payments to the elderly. He wants to cut VAT on domestic energy.

The Foreign Secretary said her plan to cut taxes, including green levies on energy bills, was a better way to help people with living costs.

The candidates to replace Boris Johnson have not said if they would extend the windfall tax on oil and gas companies.

Kit Malthouse, the Cabinet Office Minister, said that any decisions will have to wait until Mr Johnson's successor takes office in September.

He said the preparations would make it possible for the next prime minister to make quick and early decisions about what to do.

"Obviously the energy price cap changes won't kick in until October - that gives time for our prime minster to take the decisions that are required in early September."

  • Keir Starmer
  • Energy industry
  • Labour Party