Jon Cruddas said people are “paying the price” for Conservative mismanagement
It is estimated energy bills could go up by £700 per household when the price cap increases in April.
Jon Cruddas said he is worried this could push “thousands of local people into fuel poverty overnight”.
He has been in talks with Citizen’s Advice who have put forward a four-part package of reforms to help reduce the impact of the price hike.
It includes providing targeted support for low-income households via an ‘Energy Support Grant’ through the benefit system.
The organisation also wants benefits to be increased by six per cent to match the forecast inflation rate rather than by three per cent.
Jon Cruddas said: “There is a global gas price crisis, but a decade of Tory failures on energy policy has left working families uniquely exposed and as inflation spirals out of control so does the cost of living crisis.
“The Conservatives paint themselves as the Party of economic stability but on their watch those on the lowest incomes are being hit hardest, whilst fat cat oil and gas companies are expected to report near record incomes for 2021/22.
“Citizen’s Advice do amazing work across the country to support ordinary people, and I fully back their proposals. In addition to their four-part plan Labour are proposing a windfall tax on energy companies to help fund a national package of support that would save households around £200. As it stands, working people are paying the price for Conservative mismanagement.”
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