The outgoing Prime Minister said: “There is a pipeline of cash over the coming months and through the autumn and winter. “But that’s clear now that it’s going to increase, it’s going to increase, with extra cash that the government is clearly going to announce in September.” Mr Johnson added that he did not believe ministers should “shut down the whole” for “the wealthiest households in the country”. Bills expected to rise after price cap announcement – live updates On Friday morning, energy regulator Ofgem announced that the price cap for an average household would rise to £3,549 a year in October, £800 more than the predicted figure given to then chancellor Rishi Sunak in May. Speaking earlier this morning, Mr Zahawi admitted the energy price cap would cause “stress and anxiety for a lot of people”, later adding: “The reality is we all have to look at our energy consumption.” He added that he was “working steadily” to develop options to support people – but insisted it would be up to the next prime minister to decide what support to provide. Either Liz Truss or Rishi Sunak will take on the role on September 5. Mr Zahawi blamed the price hike on Vladimir Putin’s invasion of Ukraine, but later admitted that the support pledged by the government was “not enough” and that ministers “need to do more”. Use Chrome browser for more accessible video player 1:39 Energy price caps explained “The government has no plan” Sir Keir Starmer accused the government of being “lacking in action” and said it was “inexcusable” that no further intervention was made by ministers to help households amid the cost of living crisis. Labor has drawn up a £29bn plan to stop rising energy bills over the winter, funded in part by extending the windfall tax on oil and gas companies’ big profits. “What we have is a fully costed, comprehensive plan for this winter which will freeze those prices, which is welcome news for so many people who are worried sick today,” the Labor leader said. “This is a fully costed plan. We haven’t gotten it from the government or anyone else.” Labour’s shadow chancellor Rachel Reeves told Sky News the announcement of the price cap would “spark fear” in families and pensioners and urged the government to back her party’s proposal to freeze energy bills for the winter. “We cannot wait any longer to act. This is a national emergency,” he said. Liberal Democrat leader Sir Ed Davey said the price cap increase was “nothing short of a disaster” for millions of households and that freezing prices was “the only option”. Read more: Everything you need to know about the price cap Even those who have done the right thing won’t escape the effects of massive increases in energy bills Use Chrome browser for more accessible video player 2:44 Labour’s energy plan explained What did the Tory leadership candidates say? During the latest Conservative Party leadership on Thursday, Mrs Truss said she would use an emergency budget to “make sure support is on the way” amid soaring energy bills if she becomes prime minister. Ms Truss has repeatedly said she favors tax cuts over handouts, prompting criticism that her plans will benefit higher earners over low earners. Fellow leadership hopeful Mr Sunak said he would offer immediate support to households struggling to pay their bills, although he has not yet calculated how much help he is willing to give. Speaking on Friday, Mr Sunak said he would “go further” in terms of support if he became prime minister. “My priority is to protect the most vulnerable in society, including pensioners, and I want them to have confidence that extra help is coming – that’s what I would put in place,” he said. “The alternative plans, which do different things — borrowing tens of billions for permanent, unfunded tax cuts — do nothing to actually help those most in need, risk making inflation worse and endangering our nation’s finances as well ». Use Chrome browser for more accessible video player 1:41 Woman who refuses to pay her energy bill The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1 and will remain in place until December 31, when it will be adjusted again. The 4.5 million pre-paid meter customers, who are often the most vulnerable and already fuel poor, will see an even more punitive rise, with their average annual bill rising to £3,608. Sky News found that a third of households are already struggling to pay their energy bills.
