West Northamptonshire Labour councillors call on Liz Truss to freeze bills on first day as new PM

Labour councillors are urging Liz Truss to make freezing energy prices her first job as Prime Minister.

Average household bills are set to rise to more than £3,500 a year for gas and electricity in West Northamptonshire from October 1, analysis suggests.

But the local authority’s opposition group says Labour’s plan to scrap the energy cap rise — paid for by taxing the oil and gas giants’ eye-watering profits — would save residents a staggering £172,600,000 this autumn.

West Northamptonshire Labour Group leader Wendy Randall said: “Every day we are hearing from residents who cannot keep up with the cost of living, not just those on low incomes but also those who would consider themselves comfortable.

“More and more families are slipping into poverty and yet the Conservatives seem to have clocked out and taken the summer off.

“Labour’s plan to freeze the price of energy is a fully funded and common-sense solution.

"By fairly taxing the enormous profits that oil and gas companies are currently making, we can not only help residents with their bills now, but we can also use the money to properly insulate all our homes and invest in green energy, so that we get a more secure future.

“Whilst the Conservative government has been on its holidays, we in the Labour party worked hard to provide solutions that will not only help residents get through the current crisis but also keep bills down in the future and kick start our economy with high skill, well paid, green jobs.”

The UK's energy regulator, announced last week it will increase the price of electricity from an average 28p per kilowatt-hour (kWh) to 52p per kWh. Gas prices will more than double from 7p to 15p per kWh.

Energy usage varies throughout the UK but we have worked out how much an average household might pay in West Northamptonshire using government data showing the average household used a median amount of 3,133.7 kWh of electricity and 12,199.77 kWh of gas during 2020.

At current prices, it means the average household in the area is paying around £1,990 per year to heat and fuel their home. This will soar to £3,730 from October.

Energy specialists Cornwall Insights expects the price cap to surge again in January and April, with yearly average energy costs reaching £5,400 and then £6,600.

Labour estimates a price cap freeze would save West Northamptonshire’s 172,600 households an average of £1,000 each.

It says the £29 billion cost would be met by taxing oil and gas producers, using cash already pledged for non-targeted funding to prevent bills from rising and reducing inflation to save government debt interest payments.

Ms Truss pledged to deal with surging energy costs and to cut taxes after winning the Tory leadership contest to become the next PM.

Her plan, set to be announced on Thursday (September 8), is likely to include a bills freeze — although details are still unclear.

A Government spokesperson said direct aid, targeted at the most vulnerable, will “continue to reach people's pockets in the weeks and months ahead” and preparations are in place to implement support as quickly as possible now the new PM is in place.