Energy price cap rise: Naz Shah slams Chancellor's £350 plan

Ms Shah, from Labour, said the support of up to £350 in April revealed by Chancellor Rishi Sunak “does not even come close” to helping those most in need.

Announcing his support package in the House of Commons, Mr Sunak said households will receive up to £350 of support in April, when energy bills jump up by 54 per cent following Ofgem’s increase to the energy price cap announced earlier today.

He said all domestic electric customers will receive an “up-front discount of £200” to their energy bills – delivered through loans to energy companies – which will be repaid through people’s bills over the next five year, when it’s hoped global energy prices will drop.

He also announced a £150 Council Tax rebate, fully funded by the Government, for people living in Band A to D homes to support both people on benefits and those “on middle incomes who are struggling too”. He said this will help 80 per cent of homes across Britain.

Rishi Sunak said 80 per cent of households will get £350 of support in April

His third point was discretionary funding for local authorities to be used to support those exempt from paying Council Tax and living in higher band homes,

He also said the Warm Homes Discount will expanded and £3 billion is being spent this Parliament to help people make their homes more energy efficient, while increasing the minimum wage.

Mr Sunak said: “This is fair, proportional and targeted and is the right way to help people with the spike in energy costs.”

He earlier said it is “not health to hold energy prices artificially low, and to say we do not have to adapt to paying higher prices would be wrong and dishonest, but this would take the sting out of it”.

However, Ms Shah was not impresses by the announcement.

The energy price cap will go up £693 in April

She said: “You cut the Universal Credit uplift and made U-turn after U-turn after being told to feed hungry children.

“£350 does not cut it when you’ve wasted £12 billion during the pandemic.

“My constituents do not trust this government because this government is not helping them. Today’s announcement does not even come close.”

In response, Mr Sunak said: “Our actions have helped those on lowest incomes the most and I am proud of that.”

Earlier, Shadow Chancellor Rachel Reeves asked why the Government had still not cut VAT from energy bills “which would mean no increase for the poorest families”.

She said: “Cutting VAT was one of the benefits of Brexit, could there be a better time than this, when it is more needed than today?

“Instead this is another pledge thrown on the bonfire of broken Tory promises.”

Ms Reeves said people will still be paying hundreds more pounds every month despite the announcement and people were already struggling in January, before the rise is set to hit.

She called the £200 loan to energy firms plan a “gamble”, and pointed out gas firm Shell’s profits have quadrupled in the past year.

"This Government had a choice," she added, “there should be a windfall tax on these excess profits, but the Chancellor wants to shield these businesses and make the people bear the cost.

“This didn’t happen overnight, it’s a decade of dither and delay, failure to regulate the energy market, slashing gas storage, and failure to make the most of solar, wind and tidal and insulating our homes.

“The Tories are not solving the cost of living crisis, they are the cost of living crisis.”