A summary of today's developments
The energy price cap will increase to £3,549 per year for dual fuel for an average British household, from 1 October. Regulator Ofgem has hiked the current price cap by 80%, up from £1,971 at present.
Ofgem also warns that the market for gas in winter means that “prices could get significantly worse through 2023”.
Chancellor Nadhim Zahawi said that people should try to cut back on energy use at this “difficult time”. Zahawi also repeated that he is working on options to support struggling households and businesses
Outgoing prime minister Boris Johnson said the government will announce further support next month for consumers struggling with energy bills.
The boss of Ofgem said the regulator has had countless meetings with the current government, as pressure mounts for a much wider package of support to help households through the winter misery. Jonathan Brearley told reporters this morning that soaring energy bills will be “a major issue for the country next year”.
In response to the UK’s fiscal watchdog, the OBR, saying it is ready to publish a mini-forecast alongside any fiscal announcement the next prime minister might wish to make in September, shadow Treasury minister Pat McFadden said: “While families and pensioners have been worrying about making ends meet, Liz Truss and Rishi Sunak have been playing fantasy economics. It’s time for them to get a reality check.
There’s no excuse for our next Conservative prime minister to try and wriggle out of proper scrutiny before announcing any cost-of-living measures this September.
“Labour has a plan to face this crisis and make sure no one pays a penny more on their energy bills, while securing our economy for the future by insulating 19 million homes and kickstarting the green growth we need.”
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