Personal Finance

Energy prices: Labour and Tories' plans to cut energy bills after election

Labour, the Conservatives and the Lib Dems have shared what they would do to cut energy bills if they won the election.

As Ofgem announced the energy price cap will fall 7% to £1,568 from July, Labour leader Sir Keir Starmer pitched his plan for a publicly owned green electricity generator.

Great British Energy would invest in renewable energy, cutting bills, Labour said.

The nationalised organisation would be based in Scotland and paid for by a windfall tax on oil and gas companies.

Announcing the plan last week, Sir Keir said: "Labour will stop families paying over the odds for energy. Great British Energy, our new publicly-owned energy company, will invest in homegrown clean energy to boost energy independence and cut bills for good."

But the Conservatives branded it a "reckless" plan, announcing a raft of measures including keeping the price cap and making it easier to compare prices.

Energy Secretary Claire Coutinho said: "Labour does not have a serious approach to Britain's energy security and they aren't honest about the costs that their reckless net zero targets would place on households."

The energy price cap for July is equivalent to a £122 reduction in bills over the course of a year. But it is £500 lower than the cap was last July, when it was £2,074.

Tory proposals include:

  • Potentially developing a league table of energy firms ranking helpline wait times and customer service responses.
  • A call for evidence on price comparison services to help make switching easier.
  • Consulting energy brokers and price comparison websites to prevent rip off hidden fees, inaccurate bills and high-pressure sales tactics.
  • New code of practice for smart meter installation.

But Labour branded the Tory approach as a "bunch of empty buzzwords" which won't lower bills.

A Labour spokesperson said: "This is not a plan - this is a call for evidence, a set of options, two consultations, a copy-and-paste job from an old letter, and lots of wishful thinking. The Tories' grand idea after 14 years in power is to ask the public if their energy bills are too high."

Meanwhile the Liberal Democrats would invest in home insulation and renewables.

Its policy would see all homes insulated by 2030 and give local authorities more power to build community renewable energy. It also includes a social tariff for the most vulnerable.

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Helen Barnett

Helen is a journalist, editor and copywriter with 15 years' experience writing across print and digital publications. She previously edited the Daily Express website and has won awards as a reporter. Read more here.


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