Sunderland MPs condemn 'zombie Government' as energy bills are set to soar

Regulator Ofgem confirmed today that the cap on prices would rise by 80.06% from October 1, sending the average household’s yearly bill from £1,971 to £3,549 from October.

The cap for customers with pre-payment meters will rise by nearly 79% to £3,608.

Sunderland Central MP Julie Elliott said the announcement would be ‘devastating’ for families: “The Government need to act because people just can’t manage this. It is unsustainable. They simply don’t understand the choices we all have to make in our lives.

“Labour are calling for a windfall tax on the eye-watering oil and gas profits to pay for a price cap freeze.

Her Washington and Sunderland West colleague Sharon Hodgson slammed Tory leadership rivals Rishi Sunak and Liz Truss: “The two people who want to be the next Prime Minister have been going around the country setting out their policies on almost everything, apart from the biggest issue facing our county right now.

“A Labour Government would freeze the price cap, and pay for it by putting a windfall tax on oil and gas companies making huge profits.”

Houghton and Sunderland South MP Bridget Phillipson criticised the lack of action: “At this time of crisis our zombie government is absent,” she said.

"They are happy to let oil and gas companies make huge profits whilst families suffer. We need a government that can meet the scale of this national emergency.

Anna Turley, chair of the North East Child Poverty Commission, said low income families were already struggling: “Two in five children across our region are living in poverty, and families on the lowest incomes are struggling to keep their heads above water now with absolutely nothing left to cut back on.

“On today’s announcement, the Government’s current cost of living support will leave low income families £1,000 short – and that’s on energy bills alone, never mind other essentials.

“We need confirmation there will be at least a doubling of the support currently on the table and we need this now, as this situation is causing unbearable stress and anxiety for so many.”

Rhiannon Bearne, Director of Policy and Representation at the North East of England Chamber of Commerce, said small businesses were desperately worried about spiralling costs: “Our most recent survey told us energy concerns are second only to inflation in members’ minds right now.

"Yesterday we supported the British Chamber of Commerce’s plan to tackle the cost-of-doing business crisis. This includes a temporary cut in VAT to reduce energy costs and Emergency Energy Grants.”

Chancellor Nadhim Zahawi said the Government was working to develop more options to support households: “I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners,” he said.

“While Putin is driving up energy prices in revenge for our support of Ukraine’s brave struggle for freedom, I am working flat-out to develop options for further support.

“This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.”