Labour MP warns government has ‘allowed things to spiral’ over soaring energy bills

Cambridge MP Daniel Zeichner has hit out at the government for failing to tackle soaring energy bills directly.

The Labour MP made the comments after the publication of a new guide from Citizens Advice, Energy UK and Ofgem, which explains how struggling residents can get help with their bills and advice on how to make homes warmer ahead of winter.

The guide, Help with Bills, lists charities and other organisations that residents can contact.

Mr Zeichner said: “Whilst the advice provided in the guide is useful, its very existence shows how bad things have become. The government needs to get a grip and tackle the problem directly. It is a political choice to allow things to spiral to this level while oil and gas giants make huge profits.

“Winter is coming and we need an emergency solution. Labour’s fully funded plan would provide £46million for Cambridge, saving the average household £1,000 on their energy bills. Labour’s Warm Home Plan to insulate 19million homes nationwide would also save households an extra £1,000, reducing energy demand and lowering bills in the long-term without having to worry about staying warm in winter.

“The government’s refusal to deal with this crisis shows it is unfit for purpose and bereft of ideas after twelve years of power. At a time of national emergency, the Prime Minister is on holiday whilst his successors squabble over petty party-political matters. Cambridge residents deserve a competent Labour Government with an actual plan.”

It was announced this week that a spike in gas prices has added close to £500 to the forecasted energy price cap next year.

Experts now expect that the energy price cap will be set at £6,552 in April, based on Monday’s gas price.

Prices soared as markets opened on Monday after Russia said it would run maintenance on a key gas pipeline that connects the country with Germany.

It means that the price cap prediction for April from energy experts at consultancy Auxilione is £463 higher for April.

They expect the price cap to rise to £3,576 from the start of October, hitting £5,066 in January before rising even further to £6,552 from April.

It will then fall back a little, but still remain at what would have been record prices previously, hitting £5,897 in July 2023 and £5,548 three months later.

“The nervousness of the market appears to increase day by day as we edge closer to winter delivery, now just five weeks away, and no big positive news on the horizon,” Auxilione said.

“The planned outages in a week’s time have captured the attention of the market and are driving concerns further – as yesterday’s market activity demonstrated.”

Ofgem is set to announce its price cap decision for October at the end of this week. Analysts widely expect the cap to top £3,500, from £1,971 today.

All households have been promised £400 of help, with more for the vulnerable. But experts say this will not even be enough thanks to the latest price cap forecasts.

The government has said it will not announce further bill support until a new Prime Minister is in place.

Additional reporting by PA.