London Daily

Focus on the big picture.
Thursday, Jul 02, 2026

Energy Price Cap: Labour calls for three month extension

Energy Price Cap: Labour calls for three month extension

Labour has called on the government to freeze energy bills through to July.
The government's energy price guarantee, which caps the average household cost of electricity and gas at £2,500 annually, will be raised by £500 in April.

"Most people just haven't got the money to pay that," Labour's shadow chancellor Rachel Reeves told the BBC.

A three months extension of the price freeze could be funded through an increased windfall tax, Labour said.

Raising the country's existing 35% windfall tax on the profits of oil and gas companies to 78% - the same rate as Norway - would raise £4.7bn, according to Labour research.

The party said backdating the tax to the start of 2022, and ending the practice of allowing energy companies to avoid the scheme by investing profits, would raise a further £8.7bn.

The extra money should also be used to freeze fuel duty at its current rate, Labour said.

Labour called for the government to ensure prepayment meter customers do not pay more than those paying by direct debit.

There should also be a moratorium on "energy companies moving people from regular payments to pre-payment meters," Ms Reeves said.

"This effectively cutting some people off form heating at a time when temperatures fell below zero," she told Sunday with Laura Kuenssberg.


Pressed on what would happen after the three months, she said: "We've always said that we would look at it depending on what's happening to oil, gas and electricity prices.

"If those prices fall, then that should be reflected in people's bills."

All households are automatically getting a one-off £400 discount on their fuel bills, spread over six months between October 2022 and March 2023.

Households in Northern Ireland - which has a separate energy market - will receive a single payment of £600 in January, more than in the rest of the UK because of the widespread use of heating oil.

Eight million low-income households who get certain benefits or tax credits have received £650 in two payments.

The withdrawal of these payments mean lower-income households face a 40% increase in energy bills when the price cap is raised, according to the Resolution Foundation think tank.

The Department for Business, Energy and Industrial Strategy has been contacted for comment.
Newsletter

Related Articles

0:00
0:00
Close
UK Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
Northern Rail Project Warned of HS2-Style Cost Risks by UK Parliamentary Committee
UK Tightens Asylum Rules as Most Rejected Applicants Expected to Remain in Country
UK Heat Health Alert Issued as Temperatures Expected to Exceed 30°C Across England
Halifax Brand to Disappear From UK High Streets in Lloyds Banking Group Restructuring
England Teachers Receive 6.6 Percent Pay Rise Over Two Years as Schools Warn of Budget Strain
UK Defence Spending Plan Sparks Budget Clash as Regional Infrastructure Projects Face Pressure
Inquest Continues in Northern Ireland into Death of Noah Donohoe in Belfast
UK Travel Industry Calls for Suspension of New EU Border System During Peak Holiday Season
Telegraph Media Group Acquired by German Media Firm in £575 Million Deal Completion
House of Commons Warns Northern Rail Upgrade Risks Repeating High-Speed 2 Cost Overruns
UK Transport Unions Warn of Summer Strike Action Over Pay Disputes
UK Health Secretary Calls Maternity Care Review a “Watershed Moment” for NHS Reform
Nigel Farage Faces Questions Over £270,000 Payment Linked to Gold Marketing Firm
Labour Government Faces Internal Division Over North Sea Oil and Gas Policy Direction
National Screening Committee Invites New Proposals for UK Health Screening Programmes
UK and China Hold Industrial Strategy Talks on Trade and Export Growth Opportunities
UK Defence Funding Gap Widens as £4.7 Billion Shortfall Puts Pressure on Spending Priorities
United Kingdom Faces Historic Demographic Shift as Deaths Forecast to Exceed Births in England and Wales
United Kingdom Introduces Major Motability Scheme Reforms Targeting £1 Billion in Long-Term Savings
Global Billionaire Numbers Rise 13 Percent Amid Artificial Intelligence Stock Boom
Body of Fifteen-Year-Old Boy Recovered from Manchester Reservoir
Major Rail Disruption in UK After Cows Stray Onto Intercity Tracks
UK Launches National Campaign to Reduce Water Consumption After Heatwave
Foreign Secretary David Lammy Raises Case of UK Woman Death with US Authorities
Shetland Islands Council Approves Subsea Tunnel Plans Linking Major Islands
Telegraph Media Group Takeover by German-Led Consortium Completed
Resident Doctors in England Accept Government Pay and Conditions Deal
Andy Burnham Sets Out Ten-Year Economic Vision Amid Labour Leadership Debate
Asylum Seekers in UK Face £10,000 Contribution Requirement Under New Law
UK Government Moves to Break Apple and Google App Store Dominance
New UK Steel Tariffs and Import Quotas Aim to Shield Domestic Industry
Damning Report Exposes Failures in Maternity and Neonatal Care Across England
Government Data Reveals Five Billion Pound Shortfall in UK Defence Budget
Prime Minister Keir Starmer Unveils Three Hundred Billion Pound Defence Investment Plan
UK Crime and Policing Act 2026 Comes into Force with New Justice System Reforms
UK Prime Minister Hosts NATO Secretary General Mark Rutte for Security Talks at Downing Street
UK Tightens Oversight of Emissions Trading Scheme Through New Ministerial Directions
UK Issues Statement at UN Security Council on Violence in the West Bank
UK Environment Agency Clears Illegal Waste Site in West Yorkshire After Court Action
UK Resident Sentenced for Fraudulently Claiming £30,000 in Covid Business Loans
UK Launches Taskforce to Help Young People Claim Dormant Child Trust Fund Savings
×