Labor called for an overhaul of plans to tackle energy bills, saying UK household bills should “never again [be] at the mercy of a dictator”.
Sir Keir Starmer said the plans announced by No 10 ahead of Russia’s invasion of Ukraine were “a big gamble” in hopes prices would fall.
But he said if oil and gas costs rise, “the bet seems … sure to fail.”
Boris Johnson said the Government had proposed “unprecedented measures” to help families.
And he pledged to present an “energy independence plan” to ensure Britain is prepared for long-term needs.
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The cost of living crisis has hit households across the country as energy, fuel and food prices have risen sharply since the pandemic.
Chancellor Rishi Sunak in February outlined plans to deal with the £693 average energy surge due in April, promising £350 in payments to households to help.
But only £150, earmarked to support council tax bills, will arrive ahead of the increase and the other £200 – due to be paid in October – is a loan to be repaid in installments over five years.
The invasion of Ukraine and subsequent sanctions against Russia have also caused wholesale prices to rise, prompting fears of further bill hikes.
At the PM’s questions, Sir Keir accused Mr Johnson of not understanding “the mess he’s in” when it comes to the cost of living.
He called for a turnaround on what he called the “forced” £200 loan from the Chancellor and reiterated Labor’s call for a windfall tax on oil and gas company profits to help needy households .
“Before Russia invaded Ukraine, North Sea oil and gas companies were making record profits,” the Labor leader said.
“In their own words, more money than they know how to do.
“Since then, international oil and gas prices have skyrocketed and so have their profits.
“When will the Prime Minister admit he was so wrong, levy a windfall tax on those super wins and use the money to lower household energy bills?”
Mr Johnson said Sir Keir was “absolutely insane” to propose a U-turn on the Chancellor’s support scheme, claiming any windfall tax would result in the firm just raising prices further.
Instead, he said the government would “take a sober, responsible approach” and “completely end our reliance on hydrocarbons” – particularly those from Russia.
The Prime Minister pledged to invest in nuclear power and renewable energy — Labor-backed measures — and while “dark days and difficult times will lie ahead” during the invasion of Ukraine, “we will emerge stronger”.
And Sir Keir said that while there will be “costs here at home, we can withstand those costs and we must…never again be at the mercy of a dictator by ushering in a new era of energy policy”.
After a week in which much of Parliament’s attention was understandably focused abroad, Sir Keir Starmer used PMQs to focus on challenges at home over the cost of living.
At PMQs, he used his questions to suggest what Labor would do differently by talking about taxing oil and gas company profits.
Boris Johnson sticks to government solution of giving rebates and loans to households; his argument against higher taxation of companies: that this would lead to further price increases.
Both men will be aware that many of the increases will be pouring into people’s pockets at the same time this month and next.
It seems clear that more needs to be done to help people cope with rising costs.
The question is ‘what?’
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