Labor has said Liz Truss’ ‘outrageous’ scheme to help people with their energy bills will give people the lowest payout of just £1 a week as their costs rise from an estimated £57.
Rachel Reeves, the shadow chancellor, said the truss plans were not only uneconomical but grossly inadequate, adding that reversing the Social Security increase would add an estimated £1 a week to the national minimum wage – which is an increase enough to just 3% to cover. . electricity bill.
In recent days, the truce has softened the problem of helping people directly to meet rising bills, but at other times has spoken out strongly against so-called “handouts,” saying tax cuts are the answer. The Foreign Secretary also said she would remove the “green levy” from bills, which cost an average of £3 a week.
Boris Johnson said on Friday the current package of energy grants of up to £400 for the people and up to £650 for the most vulnerable is not enough as it is set to increase again in October and next year.
Amid estimates that energy bills could reach £5,000 a year by next April, the PM made it clear he expects his successor to act.
Asked if the current package is enough, Johnson said: “No, because what I’m saying, we’re also trying to make sure there’s more support by October, by January and what the government is doing.” Whoever the prime minister is , makes sure there is extra money to help people.”
Truss rival Rishi Sunak in Conservative Leadership Materials is planning a £10billion support package to help people with their energy bills and says he would be willing to borrow for it.
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But new analysis from the Tony Blair Institute says Sunak’s plan to reduce VAT on fuel would save around £14 a month for the typical household.
Labor leader Keir Starmer has been criticized in recent days for failing to present Labour’s energy policy, with former Prime Minister Gordon Brown proposing a temporary nationalization to bridge the crisis. Starmer is expected to present a full-cost energy work plan on Monday.
Labor analysis of the Truss’ tax proposals shows a full-time worker on the national minimum wage would only be paid £1 a week as a result of the Social Security changes. On Friday, Reeves said: “Liz Truss’ free tax scheme would only give workers who earn the national minimum wage an outrageous extra £1 of support, while increasing their weekly energy bill by £57 a week.
“Minimum wage is already not enough to live on and the lack of support for the Conservatives is leaving the lowest paid workers in real financial distress.
“A Labor government is now planning to put forward a plan to tax the huge profits of oil and gas producers, cut energy bills through green energy sprints for household electricity and cut 10-year hot households. Will act to lower the bill for the 19 million families living in cold, dry homes.
Therese Coffey, the Secretary of State for Works and Pensions and one of the truce’s key workers, said on Friday the bills would cost “nowhere” the levels predicted by independent analysts.
Coffey defended the truss, saying: “She’s absolutely an MP who knows what it’s like for struggling families and so rightly so once Offgame hits its price range. There comes… the whole government… and it’s up to the new prime minister to decide what changes can be made.”
A spokesman for Sunak’s campaign said on Friday that Truss had “blasted another £5billion black hole in his plans” by not backing the unexpected tax. However, the Truss campaign later clarified that it does not abolish the current untaxed tax, although it opposes it in principle as an “idea of work”.