London Daily

Focus on the big picture.
Wednesday, Jun 17, 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
Government Advances New Airport Slot Rules to Ease Airline Operating Constraints
BBC Opens Flagship Science-Fiction Franchise to Competitive Production Bids
Chancellor Meets City Leaders Amid Concerns Over Gilt Market Liquidity
Rathbones Shares Fall Seventeen Percent After Regulatory Review Reveals Compliance Failings
United Kingdom Joins Group of Seven Initiative Using Artificial Intelligence and Quantum Computing for Cancer Research
Parliament Debates Doubling Tax Allowance for Pensioners After Major Public Petition
Measles Cases Exceed Seven Hundred in London and the West Midlands
British Military Leadership Faces Parliamentary Scrutiny After Defence Secretary's Sudden Resignation
House of Lords Begins Debate on Steel Industry Nationalisation Legislation
Parliament Advances Bill to Abolish NHS England and Create Single Patient Records
Parliament Fast-Tracks National Security Bill to Expand Powers Against Foreign Threats
United Kingdom and European Union Set July Summit to Deepen Post-Brexit Cooperation
United Kingdom Imposes Seventy New Sanctions on Russia and Expands Support for Ukraine's Nuclear Sector
United Kingdom Announces Social Media Ban for Children Under Sixteen
0British Government Investigates Reports of Russian Warship Firing Warning Shots Near Isle of Wight
UK Supreme Court Revises Legal Definition of Deprivation of Liberty
King’s Birthday Honours Recognise Contributions Across Science, Culture and Public Service
UK Ministry of Defence Reports Interdiction of Russian Shadow Fleet Vessel
UK and US Launch Joint Regulatory Programme for Medicines and Healthcare Products
Solicitor General Refers Murder Sentence to Court of Appeal Under Unduly Lenient Scheme
UK Launches £1.6 Million Mobile Museum Initiative to Expand Cultural Access
Judicial Pay Structure Undergoes Government Review Following Senior Recommendations
Government Confirms Nearly 180 New Youth Hubs Across the United Kingdom
UK Government Expands Careers Support Through Partnership with LinkedIn
Digital News Report Highlights Growing Global Concern Over AI and Information Overload
UK Chancellor Reaffirms Fiscal Discipline and Borrowing Reduction Strategy
UK Government Invests £219 Million in Sustainable Aviation Fuel Development
Rolls-Royce Small Modular Reactors Secures Major Swedish Export Contract
Government Confirms Locations for Nearly 180 Youth Hubs Across Great Britain
UK Government Partners with LinkedIn to Expand Employment Support Services
Reuters Institute Report Flags Rising Public Anxiety Over News and Information Overload
UK Government Commits £219 Million to Expand Sustainable Aviation Fuel Industry
Chancellor Convenes Market Engagement Group to Assess UK Economic Outlook and Productivity Risks
Rolls-Royce Wins Multibillion-Pound Swedish Contract for Small Modular Nuclear Reactors
Government to Ban Social Media Access for Under-Sixteens Across the United Kingdom
Government Approves Fast-Tracked Broadcast Merger Reshaping UK's Media Landscape
Resignation of Defence Secretary John Healey Triggers Debate Over UK Military Strategy
Britain Intensifies Diplomatic Efforts to Support US-Iran Ceasefire
Bank of England Faces Tough Interest Rate Choices After Economic Contraction
Belfast Sees Second Day of Anti-Migrant Riots as Police Deploy Water Cannons
UK Economy Shrinks in April as Energy Price Shocks Weigh on Growth
UK to Ban Social Media Access for Children Under 16 From 2027
UK Parliament Opens Week of Fast-Tracked Security and Infrastructure Legislation
Northern Ireland Projects £21 Million Boost From Major Cultural and Sporting Events
UK and Japan Sign Technology Security Pact to Strengthen AI and Supply Chain Cooperation
UK Welcomes US-Iran Peace Breakthrough Aimed at Restoring Strait of Hormuz Shipping
British Forces Intercept Russian Shadow Fleet Oil Tanker in English Channel Sanctions Operation
UK to Ban Social Media for Under-16s Under Landmark Online Safety Expansion
Anti-Immigrant Riots Spread Across Belfast, Raising Security Concerns
Ministry of Defence Opens Europe's Largest Drone Testing Facility in Swindon
×