London politics latest LIVE: Labour slams lack of windfall tax in Liz Truss’s £2,500 energy bills cap

Labour leader Keir Starmer has asked ‘who is going to pay?’ as he criticised the government’s failure to extend the windfall tax as Liz Truss announced her energy plan.

Ms Truss’s plan will lock average household bills to no more than £2,500 for two years from October 1. It will save households £1,000 per year, she said.

The energy package is also expected to curb inflation by up to five percentage points.

However, Mr Starmer, in response, said the plan came at a cost to households.

He said the plan “does not come cheap" and the refusal to fund it with a windfall tax showed she was "driven by dogma" and "it's working people who will pay for that".

The Labour leader previously accused the Government of writing a “blank cheque” to oil and gas giants making £170 billion in excess profits.

What can be expected from Liz Truss’s energy bill?

07:09 , Miriam Burrell

Liz Truss has promised to take immediate action to help families and businesses pay for their soaring energy bills this winter.

Ofgem announced the price cap is set to increase by 80 per cent in October from £1,971 to £3,549, and that is set to continue.

Ms Truss has blamed the skyrocketing prices on Russia’s invasion in Ukraine.

She is expected to announce a freeze on energy bills at around £2,500 but this will not be paid for by a windfall tax.

Levelling Up Secretary Simon Clarke told Sky News on Thursday that the government is taking “meaningful action to address the concerns people will be feeling”.

Mr Putin has weaponised gas as a way to break the Western resolve, Mr Clarke said. Britain needs “solutions with a lasting framework”, he added.

Energy announcement expected mid-morning

07:22 , Miriam Burrell

It is being reported that the Prime Minister will reveal her energy plan at around 11.15am in the House of Commons.

The announcement is expected to be made in the form of a general debate and not a ministerial statement.

This means the government does not have to publish details in advance and Ms Truss does not have to face sustained questions from MPs.

Clarke: UK ‘desperately vulnerable’

07:29 , Miriam Burrell

The UK’s dependence on Russian gas has left it “desperately vulnerable” and “that has to end”, Levelling Up Secretary Simon Clarke has said.

He told Sky News: “The sun is not shining right now, this is a global storm and the UK is like the rest of the West and responding to a situation that is not our making.

“I absolutely believe the state should live within its means whenever possible.

“What we cannot do is just allow this situation to play out without decisive intervention which will provide a lasting framework.”

Mr Clarke said gas from Russia “has underpinned” the UK and that “dependence has left us desperately vulnerable”.

“That has to end,” he added.

Truss to scrap ban on fracking - reports

07:37 , Miriam Burrell

Liz Truss is set to announce she is scrapping the ban on fracking, the Daily Telegraph reports.

She is tipped to follow through on her leadership vow to end opposition to shale gas extraction in places where it is backed by local communities.

The new PM will also confirm she is scrapping green levies on energy bills and declare her support for more North Sea drilling, according to reports.

Energy bills freeze ‘has to be real and funded fairly'

07:45 , Miriam Burrell

Energy bills should remain capped at their current £1971, Shadow Secretary of State of Climate Change and Net Zero Ed Miliband has said.

He told the BBC it is right for the government to introduce a universal freeze on energy bills, but “it has to be a real freeze and funded fairly”.

Mr Miliband claimed Liz Truss’s priorities do not wash with the British public.

“I worry Liz Truss is going to make decisions which don’t spread the burden fairly,” he told BBC Breakfast.

“She’s got a proposal to cancel the rise in corporation tax... that is going to cost £17 billion. We know that our public services are struggling in the most terrible way.

“I dont think the right priority is massive tax cuts for businesses.”

Energy companies pay ‘fair share’ of taxes

08:07 , Miriam Burrell

Oil and gas giants making billions of pounds of extra profits are paying their “fair share of taxation,” Levelling-up Secretary Simon Clarke has said.

“The reality is that if companies are making large profits then of course they will also be paying large amounts in tax to the Exchequer,” he told Sky News.

“There is already a windfall tax which was introduced earlier this year.

”It’s worth remembering oil and gas companies pay double the main rate of Corporation Tax, 40p in the Pound compard to 19p as the main rate.

“It’s not as though they don’t pay their fair share of taxation.”

Businesses call for price per unit of energy to be fixed

08:21 , Miriam Burrell

Martin McTague of the Federation of Small Businesses (FSB) has called on the government to fix the price per unit of energy for small enterprises.

The body’s national chairman told Sky News: “I’ve been in business for 35 years and this is about as bad as I’ve ever seen it. There are businesses literally hanging on by their fingernails.

“The urgency of this can’t be overstated.

“What we’re hoping we see is that the price per unit of energy will be fixed and any of the shortfall will be picked up by Government borrowing.”

What is fracking?

08:27 , Miriam Burrell

Fracking is a process in which liquid is pumped deep underground at high pressure to fracture shale rock and release gas or oil trapped within it.

Downing Street has hinted a fracking ban could be lifted in Thursday’s energy bills package.

The pressure of the liquid mixture forces the gas and oil up through the ground to the head of the well. The process can be executed by drilling vertically but the most common extractions are drilled horizontally through the rock layers, which create new pathways to release gas.

Nearly half of the country is mined for shale gas.

There are trillions of feet of shale gas resources deep underneath England and Scotland, but it is unknown how much of this can be extracted.

Truss vows to deal ‘hands on’ with energy crisis

08:45 , Miriam Burrell

Prime Minister Liz Truss has vowed to deal “hands on” with the energy crisis ahead of her announcement on Thursday morning.

She is set to unveil the government’s plan to support families and businesses through winter in the House of Commons around 11.30am.

Government’s opposition to windfall tax ‘bogus’

08:53 , Miriam Burrell

Liz Truss’s refusal to impose a windfall tax on energy companies’ excess profits has been made “purely on the basis of dogma”, Ed Miliband has said.

The shadow climate change secretary told BBC Radio 4’s Today programme that it was “bogus” to suggest a windfall tax would damage investment in the energy industry.

“This investment argument is completely bogus; that it would have a damaging effect on business,” he said.

“This is a dogma, and I’m afraid we see a pattern here.

“Now we have a government that is setting its face against it purely on the basis of dogma.”

Rising energy prices will lead to ‘early deaths'

09:13 , Miriam Burrell

Rising energy prices will lead to a “public health emergency” with “early deaths” from illnesses caused by living in cold conditions, Adam Scorer of National Energy Action (NEA) has warned.

Chief executive of the fuel poverty charity told Sky News there will be millions of unheated homes, that will lead to respiratory conditions, strokes, heart attacks and early deaths unless there is government intervention.

“Clients who are coming to National Energy Action, they really don’t need reassurance about future bills, they need rescuing from current bills,” he said.

Energy bills: ‘Major intervention’ promised by government

10:01 , Miriam Burrell

Levelling Up Secretary Simon Clarke is promising a “major intervention by government” to reassure families and businesses who are worried about increasing bills.

“If we don’t act to deal with the massive increases, then there’s going to be massive economic damage,” he told BBC Breakfast.

Record 6.8m patients waiting for hospital treatment

10:27 , Miriam Burrell

The number of people in England waiting to start routine hospital treatment has risen to a new record high, according to the latest NHS figures.

A total 6.8 million people were waiting to start treatment at the end of July, NHS England said today.

It marks an increase on the 6.7 million figure recorded in June and is the highest number since records began in August 2007.

Meanwhile, a total of 377,689 people were waiting more than 52 weeks to start hospital treatment at the end of July.

Ambulances took an average of 42 minutes and 44 seconds last month to respond to emergency calls – down from 59 minutes and 7 seconds in July but still well above the target of 18 minutes.

Police warn of energy rebate scam

10:42 , Miriam Burrell

City of London Police warn of criminals impersonating Ofgem to target people with energy rebate scams.

“It is shameful that in a time of financial hardship, criminals are targeting members of the public by claiming they are entitled to receiving rebates and refunds,” Detective Chief Inspector Hayley King said.

“If an email is genuine, the company will never push you into handing over your details. Always take a moment to consider if the request you have received is genuine.

“We would always urge people to follow the Take Five to Stop Fraud advice and think carefully before giving out their personal and financial details.”

Truss leaves No10 ahead of energy announcement

11:09 , Miriam Burrell

Prime Minister Liz Truss has left No10 Downing Street ahead of her energy announcement in the House of Commons.

She is expected to unveil a multi billion-dollar package to help families and businesses pay soaring energy bills.

The debate is expected to start at around 11.30am.

Liz Truss has arrived at the House of Commons

11:41 , Miriam Burrell

The Prime Minister has entered the House of Commons ahead of the debate on her energy plan.

£2,500 price cap

11:42 , Miriam Burrell

“I promised I would deal with soaring energy prices,” Liz Truss has said.

“Today I’m delivering on that promise,” she said.

From October 1 a typical household will pay no more than £2,500 per year for each of next two years.

It will save households £1,000 per year, she said.

Supporting Britain through winter

11:44 , Miriam Burrell

“We are supporting this country through this winter and next so we are never in same position again,” Liz Truss said.

For those living with heating oil, a fund will be set up so all UK consumers can ebenefit to equivalent support, she said.

Support for hospitality

11:46 , Miriam Burrell

The government will support public sector organisations with a gurantee for six months.

After six months, further support will be given for the hospitality sector inluding pubs, Liz Truss said.

She said energy bills are going to be affordable ahead of this winter.

Written statement

11:48 , Miriam Burrell

MPs are calling for a written statement on the government’s energy announcement.

Speaker of the House said it is being printed as soon as possible, and the delay is with great disappointment.

How will the price cap be paid for?

11:52 , Miriam Burrell

“The reality is we can’t tax our way to growth,” Liz Truss said.

“The policy is about helping people with their energy costs and long term energy supplies for the UK.

“The way we are going to defray the cost is first of all by ramping up supply.

“We have created a new energy supply taskforce,” Ms Truss said.

They are negotiating long-term energy contracts.

Plan to curb inflation by 5%, Truss claims

11:56 , Miriam Burrell

The prime minister said today’s action will deliver substational benefits to the UK’s economy.

Boosting growth will increase tax receipts, Liz Truss said.

Her plan will curb inflation by 5 percentage points, she said.

She is also announcing a plan with the Bank of England to set up a new scheme worth £40bn, so firms “have liquidity to manage price volatility”.

‘Vulnerable’ to global markets

11:58 , Miriam Burrell

Liz Truss said vulnerable families will be receiving extra support of £400.

“The fact is that energy policy over the past decade has not focused enough on securing supply.

“There is no better example than nuclear, where UK has not built a single new nuclear reactor in 25 years.”

She said regulatory structures have failed as well.

Ms Truss said this has left the UK vulnerable to global markets.

Two reviews to be launched

12:00 , Miriam Burrell

As well as today’s announement, the government will use two years to make sure UK never “gets in this situation again”, Liz Truss said.

The prime minister is launching two reviews - into energy regulation to fix underlying problems and to ensure the government delivers net zero by 2050 in a way that is “pro business and pro growth”.

Truss confirms ban on fracking scrapped

12:02 , Miriam Burrell

Liz Truss said she is increasing domestic energy supply.

The government will end the memortorium on fracking, which could get gas flowing as soon as six months, Ms Truss said.

UK to be net energy exporter by 2040, Truss says

12:04 , Miriam Burrell

“We will make sure the UK is a net energy exporter by 2040,” Liz Truss said.

She said this is part of her vision for rebuilding the economy.

“I will end the UK’s short-termist approach once and for all,” she said.

This will help us bring a stronger more reslient and more United Kingdom.

Keir Starmer : ‘Under this plan there is a price rise'

12:07 , Miriam Burrell

Sir Keir Starmer said Labour called for a price freeze so no household would pay penny more on bills.

The Labour leader said no government can stand by while millions go into poverty.

He said he is pleased action has been taken today and the principle of a price limit has been accepted.

But he said Labour called for families not to pay a penny more.

“Under this plan there is a price rise,” he said.

“This support doees not come cheap and real question is who is going to pay?”

He said the bill will be picked up working people.

Windfall tax opposition driven by ‘dogma'

12:09 , Miriam Burrell

Sir Keir Starmer said Liz Truss’s opposition to a windfall tax on oil and gas company profits is driven by “dogma”.

'Working people paying for cost of living crisis’

12:12 , Miriam Burrell

“It’s a very simple question of who side are you on?” Sir Keir Starmer asked Liz Truss.

This is not a one off, he said. Ms Truss is not extending windfall tax and is also refusing to cut corporation tax.

She is making that choice even though families and public sector are struggling, he said.

“Working people are paying for the cost of living crisis,” Mr Starmer said.

Starmer: PM opposed to solar power, and she is wrong

12:15 , Miriam Burrell

Sir Keir Starmer said the Tory’s banned onshore wind in 2015 and cost the UK’s clean energy capacity.

He said it was a “policy disaster”.

“The prime minister is consistently opposed to solar power and she has been consistently wrong,” Mr Starmer said.

Clash over nuclear power

12:17 , Miriam Burrell

The last Labour government gave the go-ahead for new nuclear sites in 200, Sir Keir Starmer said.

“In the 13 years since then, not one has been completed,” he said.

Former prime minister Theresa May accused Labour of failing to boost nuclear energy during their time in power.

Home insulation

12:21 , Miriam Burrell

On home insulation, Sir Keir Starmer said the UK has the droughtiest homes in Europe.

Insulation rates are down by 92 per cent and costing households a £1,000 a year on bills, he said.

Wind and solar power 9x cheaper than gas, Starmer says

12:23 , Miriam Burrell

New wind and solar power are now nine times cheaper than gas, Sir Keir Starmer said.

We need to urgently accelerate offshore wind, onshore wind, nuclear, hydrogen and tidal energy, Mr Starmer said.

Energy plan has ‘big hole in it’, Action for Children says

12:27 , Miriam Burrell

Action for Children said the plan announced by Prime Minister Liz Truss is “a big intervention with a big hole in it”.

Director of policy and campaigns for the charity Imran Hussain said: “This package should’ve thrown more of a lifeline to the families who need it most.

“We desperately need more targeted help through benefits for the low-paid and those who have lost their jobs or cannot work because of disability, illness or caring responsibilities.

“Even with a freeze, energy bills will still be double what they were a year ago, the price of other essentials continues to soar, and the true value of benefits has been cut.

“Low-income families needed help with energy bills but also financial hope for the future if their children are to avoid a bleak Christmas and New Year.”

Save the Children: Universal Credit should be boosted ‘immediately’

12:31 , Miriam Burrell

Save the Children head of child poverty Becca Lyon said: “If there is enough money to pay the energy bills of the rich and not ask energy giants to pay a penny more, surely there should be enough money to make sure no family has to choose between heating and eating this winter.”

She added: “The Prime Minister needs to deliver a plan that provides targeted support to families on low incomes who are juggling big bills on all fronts.

“The best way to do this is by putting more money into Universal Credit – this should be done immediately.”

‘Thoughts and prayers with the Queen’

12:41 , Miriam Burrell

Speaker of the House of Commons Sir Lindsay Hoyle has stopped the debate on the energy crisis to say thoughts and prayers are with the Queen.

A statement from the Royal Family on Thursday afternoon said doctors are concerned for her health.

They have recommended she remain under medical supervision.

“The Queen remains comfortable and at Balmoral,” the statement said.

‘Whole country deeply concerned’ with Queen’s health, Truss says

12:44 , Miriam Burrell

Prime Minister Liz Truss has left the House of Commons following news of the Queen’s deteriorating health.

In a Tweet she said the “whole country will be deeply concerned” after doctors recommended Her Majesty remain under medical supervision.

Keir Starmer ‘deeply worried’ about Queen

12:59 , Miriam Burrell

Labour leader Sir Keir Starmer, who also appeared to be notified of the Queen’s health during the House of Commons debate, said he is “deeply worried”.

Targeted support for disabled households needed, charity says

13:00 , Miriam Burrell

The charity Sense said the government’s energy announcement “will bring relief to many”, but does not recognise the additional costs disabled people face.

Chief executive Richard Kramer said: “The families we support have said they are desperate, with no choice but to run the feeding machines, electric wheelchairs, epilepsy sensors and oxygen machines that support their loved-ones, but require a lot of energy. These are not luxuries.

“This freeze of the energy cap is an important step, but we need urgent targeted supported for disabled households and to uprate benefits to a level that people can live on.”

Support for hospitality sector ‘disappointment'

13:09 , Miriam Burrell

A cafe owner has said that the help offered to the hospitality sector by Liz Truss was a big “disappointment” as he hoped that VAT rates would be slashed to help businesses survive.

Robert Chapman, 57, who runs a cafe with his wife in Beverley, in the East Riding of Yorkshire, told PA that the plan “doesn’t seem long enough”.

“When you’ve got these massive energy prices coming down the line, delaying them for six months just means you’re in limbo for six months.

“We work on much longer cycles than six months to make decisions on hiring, on investment… and a six-month period of just waiting is not going to help anybody.”

‘Between £600 and £800’ would help poorest through winter

13:19 , Miriam Burrell

A disabled man who has been forced to turn to a GoFundMe to pay his energy bills said he had hoped for a “cash injection” from Liz Truss, as he prepares to heat just two rooms in his home.

Jason Alcock, 51, from Stoke-on-Trent, who has autism, ADHD and bipolar disorder, said he believed “between £600 and £800” would have been sufficient to help “most of the people on the lowest tier”.

He told the PA news agency: “Today I was hoping for an extra amount of real cash for people on benefits and people on low income. Anybody who’s on benefits, we’ve got so little money now to spare, it’s not just the gas and electric.”

A recap

13:23 , Miriam Burrell

Prime Minister Liz Truss has announced that the annual typical household energy bill will be capped at no more than £2,500 for two years.

The limit will be introduced from October when the energy price cap was due to soar from £1,971 to £3,549.

It will save the average household £1,000 a year, according to the Government.

Together with a £400 discount previously announced by former chancellor Rishi Sunak, it means millions of households will be paying around £2,100 a year.

Find out more about the government’s energy plan here.

Pictured: Energy price caps

13:25 , Miriam Burrell

MPs respond to energy announcement

13:34 , Miriam Burrell

MPs have criticised the government’s plan to cap energy bills at £2,500 a year for two years, claiming it doesn’t go far enough to help families.

Lib Dems leader Ed Davey said it leaves struggling families with a £500 increase while lining the “coffers of energy companies”.

Labour MP Richard Burgon said “private energy profits are being put before the needs of people”.

Govt must ensure financial support for those using medical equipment, says Labour MP

13:50 , Daniel Keane

A Labour MP has urged the Government to ensure that sufficient financial support is made available to cover essential electrical medical equipment.

MP for Swansea East Carolyn Harris told MPs about her daughter-in-law, who has suffered from kidney failure since she was 11.

Ms Harris said home dialysis has allowed her relative to "spend more time with her family, has given her the opportunity to return to university and to go to work rather than spend three days a week in hospital".

However, the MP added: "Running the machine for 10 days, 10 hours at a time, six nights a week comes at a price.

"The approximate cost for electricity to run the home dialysis machine is almost £80 per month at present, and with energy prices set to soar, these costs are only going to increase, threatening many patients' ability to continue their life-saving treatment at home."

She insisted many other people "depend on home electrical medical equipment", such as oxygen concentrators, nebulisers and artificial ventilators, adding: "Can the Government ensure that sufficient financial support is made available to cover these essential electrical medical equipment?"

PM’s energy plan ‘not a freeze’, says Davey

13:58 , Daniel Keane

Liberal Democrat leader Sir Ed Davey has told the Commons the Prime Minister's energy plan is not a "freeze on people's energy bills".

He explained: "In the middle of a cost-of-living emergency, the Conservatives are choosing to put energy bills up by another £500 for struggling families.

"This hike in people's energy bills comes on top of the £700 rise we saw last April. Struggling families were paying twice as much for energy as they were last year. People will still be desperately worried about how they're going to keep warm this winter.

"And I suppose the £400 discount simply won't make up for this enormous rise in energy bills. So where is the new support for families and pensioners who are struggling?"

He added: "Under the Prime Minister's plan, fuel poverty will get worse, not better. And turning to the way we think she's proposing to pay for this package, why does it seem the Government is handing an eye-watering bill to taxpayers in the form of higher borrowing, which we all know ultimately means higher taxes for taxpayers and particularly for our children?"

Karl McCartney sacked as transport minister

14:27 , Miriam Burrell

Karl McCartney has said on Twitter that he is no longer a Minister at the Department for Transport.

Energy package could cost more than £100bn

14:31 , Miriam Burrell

Carl Emmerson, deputy director of the Institute for Fiscal Studies, has said the Government’s energy support package could cost more that £100 billion in the first year alone.

“The cost will be very, very uncertain. It will depend on what happens to gas prices over the next two years, it will depend on whether this scheme is extended,” he told BBC Radio 4’s The World at One.

“I would be surprised if over the next 12 months it didn’t cost more than £100 billion.

“The uncertainty gets much greater the further out you go. This expires in two years’ time. On current expectations, that will make it a very painful winter in 2024-25.

“I think that does open the question about whether this scheme will get extended or not, just as the (Covid) furlough scheme got extended and extended again and again.”

Energy plan ‘not a good deal for consumers'

15:07 , Miriam Burrell

Labour’s shadow climate change secretary Ed Miliband said the Prime Minister’s plan is “not a good deal for consumers”.

Mr Miliband said: “(The Prime Minister) has been clear that she is against a windfall tax. We know the effects of this, it means all of the costs are loaded onto the British people.

“Let’s dispose of the argument that this is somehow not about higher taxes. In the end this will have to be paid for by the British people in higher taxes. So, the question is not whether we are going to tax to pay for this, but who we are going to tax.”

He said the Government’s plan is to make a voluntary agreement where the companies decide to opt in to reduce prices, which he said was a “terrible proposal”.

“In exchange for giving up some profits now, the deal is to lock in higher prices over the next 15 years. This is not a good deal for consumers,” he said.

Who is going to pay?

15:20 , Miriam Burrell

The Energy Price Guarantee is not a direct loan to customers or to energy suppliers, the Business Secretary has said.

Jacob Rees-Mogg told MPs: “The leader of the Opposition asked who is going to pay for this?

“Well, the energy bills guarantee is not a direct loan to customers or to energy suppliers.

“However, as the price stabilises in due course, the Government will need to consider when and how to recoup at least some of the cost of the scheme and the opposition are all for taxation.”

Mr Rees-Mogg argued “if you are going to encourage investment, and we need investment, in this country, the tax policy has to be set for the long term”, adding: “You cannot retrospectively pick people’s pocket, you need to tell them what the charge will be beforehand and keep it clear.”

A wrap

15:40 , Miriam Burrell

That’s all for our live coverage today.

Have a good evening.