Liberal Democrat MP Richard Foord has called on the Government to spare people from soaring energy bills by cancelling October’s price cap increase, accusing the Conservatives of “stalling in the face of a national emergency”.

The plan would save a typical household in East and Mid Devon almost £2,000 per year.

The price cap is currently at £1,971 a year for a typical household. It went up by £693 (54%) in April.

The Liberal Democrats are calling for Ofgem not to increase the price cap.

Under the Lib Dem proposal the 70% increase in the energy price cap expected to be announced by Ofgem later this month would be cancelled, with the Government instead paying the shortfall to energy suppliers so that they can afford to supply customers at the current rates. 

This would mean a total estimated saving of £173 million on electricity and gas bills across the two Devon authorities.

The Liberal Democrats say the estimated £36 billion cost should be met by expanding the windfall tax on oil and gas company profits, and using the Government’s higher-than-expected VAT revenues as a result of soaring inflation. This is based on Cornwall Insight’s latest forecasts for the new price cap, and the number of electricity and gas meters in Great Britain.

A windfall tax could raise around £20 billion to help keep people’s energy bills from rising in October. Fossil fuel giants have seen their profits soar: BP and Shell made £29 billion in profits in the first six months of the year alone. 

The party is also calling for more targeted support for vulnerable and low-income households. This would include doubling the Warm Homes Discount to £300 and extending it to all those on Universal Credit and Pension Credit, while investing in insulating fuel poor homes to bring prices down in the long term.

The government took in £11 billion more in VAT last fiscal year (2021-22) than it was expecting and is now expected to take in an extra £9 billion this year and £10 billion next year compared to last year’s forecasts. That’s a £30 billion VAT windfall that the Lib Dems want the Government to use to help families and pensioners.

Richard Foord, Liberal Democrat MP for Tiverton and Honiton, said:

“People across our part of Devon are already struggling to make ends meet. Many are deeply concerned about how they will cope with the predicted rise in energy bills - which are set to soar by almost 70%.

“This Conservative Government is stalling in the face of a national emergency. Yet again they are neglecting their duty to the country and not doing enough to put money back into people’s pockets, so they can pay their bills.

“Countless families and pensioners across East and Mid Devon are already struggling. They need help now and cannot afford to wait weeks for a new Conservative leader to act.

“This is an emergency, and the Government must step in now to help families and pensioners across Devon by cancelling the planned rise in energy bills this October.”