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I thank the hon. Member and I can tell him that what we are doing right now is helping 8 million households across the country with £1,200 of support, £300 for pensioners who are in receipt of the cold weather payment, plus £400 for every household in the country. That is the support we are giving right now to help people with the cost of energy. The only reason we can do it, as I have said before to the House, is because of the strength of the economy and the brave, tough calls we got right during the pandemic.
I thank the hon. Member and I can tell him that what we are doing right now is helping 8 million households across the country with £1,200 of support, £300 for pensioners who are in receipt of the cold weather payment, plus £400 for every household in the country. That is the support we are giving right now to help people with the cost of energy. The only reason we can do it, as I have said before to the House, is because of the strength of the economy and the brave, tough calls we got right during the pandemic.
Q13
.
Kenny MacAskill (East Lothian) (Alba):
The poorest in this country currently pay the highest fuel costs through prepayment meters that have higher standing charges and higher tariffs. Belgium ensures a social tariff for the poorest and most vulnerable. As the perverse and pernicious euphemism of self-disconnection enters the lexicon—when in fact it is a politically imposed choice, not something chosen by individuals—is it not time that we provided a social tariff and ended the injustice of prepayment meters ?
I heard enough to have a rough idea of the nonsense the hon. Gentleman was talking. We are not only supporting people now but will continue to put our arms around the people of this country, as we did during the pandemic and beyond.
I heard enough to have a rough idea of the nonsense the hon. Gentleman was talking. We are not only supporting people now but will continue to put our arms around the people of this country, as we did during the pandemic and beyond.
Does the Prime Minister agree that when the Leader of the Opposition spins his myth of a low tax Labour party, he clearly needs a memory jog? [Interruption.] May I remind Labour Members that in 2019 they all stood on a manifesto that would have inflicted the highest tax burden on the people of this country in peacetime—and that is probably why there are so few of them over there on the Labour Benches?
I remind the House that the right hon. and learned Gentleman struggled to define what a woman is. If he cannot make up his mind on that point, heaven help us. This Government are not, in principle, in favour of higher taxation; of course not. Labour loves it. They love putting up taxes. Dogs bark, cats miaow and Labour puts up taxes. What we want to do is take a sensible approach, governed by the impact on investment and jobs. That is the test of a strong economy, and it is by having a strong economy that we will be able to look after people, as we did during covid and as we will in the aftershocks of covid. I am proud to say it was revealed this week that unemployment has come down to the lowest level since 1974. I do not know how old he was, but I was 10 years old.
I remind the House that the right hon. and learned Gentleman struggled to define what a woman is. If he cannot make up his mind on that point, heaven help us. This Government are not, in principle, in favour of higher taxation; of course not. Labour loves it. They love putting up taxes. Dogs bark, cats miaow and Labour puts up taxes. What we want to do is take a sensible approach, governed by the impact on investment and jobs. That is the test of a strong economy, and it is by having a strong economy that we will be able to look after people, as we did during covid and as we will in the aftershocks of covid. I am proud to say it was revealed this week that unemployment has come down to the lowest level since 1974. I do not know how old he was, but I was 10 years old.
I, too, send my best wishes to Rangers. It has been quite an extraordinary story for that football club over the last few years.
A one-off tax on huge oil and gas profits would raise billions of pounds and cut energy bills across the country. The Chancellor rightly says there are two camps on this: you are either for it or you are against it. But in which camp does the Chancellor put himself? He says neither. Well, I am in favour of it. This is the question for the Prime Minister: is he for it, is he against it or is he sitting on the fence like his Chancellor?
Labour’s plan, always and everywhere, is to raise taxes on business. I remember the right hon. and learned Gentleman campaigning in 2019 on the biggest taxes for business that this country has ever seen. That is their instinct. This country and the world face problems with the cost of energy, driven partly by covid and partly by Putin’s war of choice in Ukraine. We always knew there would be a short-term cost in weening ourselves off Putin’s hydrocarbons and in sanctioning the Russian economy. Everybody in this House voted for those sanctions. We knew it would be tough, but giving in and not sticking the course would ultimately be a far greater economic risk. Of course we will look at all the measures we need to take to get people through to the other side, but the only reason we can do that is because we took the tough decisions that were necessary during the pandemic, which would not have been possible if we had listened to the right hon. and learned Gentleman.
Labour’s plan, always and everywhere, is to raise taxes on business. I remember the right hon. and learned Gentleman campaigning in 2019 on the biggest taxes for business that this country has ever seen. That is their instinct. This country and the world face problems with the cost of energy, driven partly by covid and partly by Putin’s war of choice in Ukraine. We always knew there would be a short-term cost in weening ourselves off Putin’s hydrocarbons and in sanctioning the Russian economy. Everybody in this House voted for those sanctions. We knew it would be tough, but giving in and not sticking the course would ultimately be a far greater economic risk. Of course we will look at all the measures we need to take to get people through to the other side, but the only reason we can do that is because we took the tough decisions that were necessary during the pandemic, which would not have been possible if we had listened to the right hon. and learned Gentleman.
Hang on; last week the Prime Minister said he will have a look at the idea, and yesterday he voted against it. Anyone picking up the papers today would think the Government are for it, and now he says he is against it again. Clear as mud. To be fair, it is not like the rest of the Cabinet know what they think, either. On the same day, the Chancellor said it was
something he is looking at and the Justice Secretary said it would be “disastrous.” The Business Secretary called it a “bad idea,” but he also said he would consider a Spanish-style windfall tax. One minute they are ruling it in, and the next they are ruling it out. When will the Prime Minister stop the hokey-cokey and just back Labour’s plan for a windfall tax to cut household bills?
The right hon. and learned Gentleman says that this Government have no sympathy for people who are struggling and working. Let me tell him what we are already doing. We are already spending £22 billion. We are already helping people with the cost of living in any way that we can, but the reason why we can do that is that we took the tough decisions to get this country through covid, to make sure that we came out of lockdown in the way that was necessary, and to have a strong economy with robust employment growth. We will continue—[Interruption.] He talks about cutting taxes. In July, we will have the biggest tax cut for 10 years: £330 in cuts, on average, for 30 million people who are paying national insurance contributions. The reason why we can do that is that we have a strong and robust economy. I am going to look at all measures in future to support our people—of course I am—but the only reason why we can do that, and why our companies are in such robust health, is because of the decisions this Government have taken.
The right hon. and learned Gentleman says that this Government have no sympathy for people who are struggling and working. Let me tell him what we are already doing. We are already spending £22 billion. We are already helping people with the cost of living in any way that we can, but the reason why we can do that is that we took the tough decisions to get this country through covid, to make sure that we came out of lockdown in the way that was necessary, and to have a strong economy with robust employment growth. We will continue—[Interruption.] He talks about cutting taxes. In July, we will have the biggest tax cut for 10 years: £330 in cuts, on average, for 30 million people who are paying national insurance contributions. The reason why we can do that is that we have a strong and robust economy. I am going to look at all measures in future to support our people—of course I am—but the only reason why we can do that, and why our companies are in such robust health, is because of the decisions this Government have taken.
He just doesn’t get it, does he? He doesn’t actually understand what working families are going through in this country. They are struggling with how they are going to pay their bills. While he dithers, British households are slapped with an extra £53 million on their energy bills every single day. Meanwhile, every single day, North sea oil and gas giants rake in £32 million in unexpected profits. Does he not see that, every single day he delays his inevitable U-turn—he is going to do it—he is choosing to let people struggle when they do not need to?
I will tell the right hon. and learned Gentleman what has happened in the past month. We have got 300,000 more people off welfare and into work, on our Way to Work programme. It is because we get people into work that those families, those people, are £6,000 a year better off. It is by getting people into work that we fix the long-term problems of this economy. His answer, in addition to putting up taxes, is to borrow more—we heard it from the shadow Chancellor this morning. She says she wants to borrow almost another £30 billion; that is what she says. Do Members know what that means? It means more pressure on interest rates. It means pressure on mortgages. It means pressure on every family—on every man, woman and child—in this country. That is Labour economic policy. That is why there has never been a Labour Government who left office with unemployment lower than when they came in—that is the reality.
I will tell the right hon. and learned Gentleman what has happened in the past month. We have got 300,000 more people off welfare and into work, on our Way to Work programme. It is because we get people into work that those families, those people, are £6,000 a year better off. It is by getting people into work that we fix the long-term problems of this economy. His answer, in addition to putting up taxes, is to borrow more—we heard it from the shadow Chancellor this morning. She says she wants to borrow almost another £30 billion; that is what she says. Do Members know what that means? It means more pressure on interest rates. It means pressure on mortgages. It means pressure on every family—on every man, woman and child—in this country. That is Labour economic policy. That is why there has never been a Labour Government who left office with unemployment lower than when they came in—that is the reality.
The Prime Minister is still pretending the economy is booming. He still has his head in the sand, in the middle of an economic crisis. He keeps saying that more help is coming, but we have heard it all before. On 13 May, he stood there and said,
“We will do more right now.”
A week has passed, and there has been nothing. On 19 April, he stood there and said:
“we will do more as soon as we can”.—[Official Report, 19 April 2022; Vol. 712, c. 60.]
A month has passed, and still nothing. The Chancellor said, “Wait until the autumn.” At least he is honest that the plan is to do nothing. Does the Prime Minister not realise that working people across the country cannot afford to wait while he vacillates? It is time to make his mind up.
Nothing could be more transparent from this exchange than Labour’s lust to raise taxes on business. We do not relish it. We do not want to do it. Of course we do not want to do it; we believe in jobs, in investment and in growth. As it happens, the oil companies concerned are on track to invest about £70 billion into our economy over the next few years, and they are already taxed at a rate of 40%. What we want to see is investment in the long-term energy provision of our country; Labour has signally failed to do this, cancelling our nuclear power investment. The people suffering from high energy prices in this country today have previous Labour Governments to blame for that mistake. Of course we will look at all sensible measures, but we will be driven by considerations of growth, investment and employment. I just remind the House that unemployment has now hit a record low—or for 50 years, I should say—and half a million more people are now in payroll employment than before the pandemic began.
Nothing could be more transparent from this exchange than Labour’s lust to raise taxes on business. We do not relish it. We do not want to do it. Of course we do not want to do it; we believe in jobs, in investment and in growth. As it happens, the oil companies concerned are on track to invest about £70 billion into our economy over the next few years, and they are already taxed at a rate of 40%. What we want to see is investment in the long-term energy provision of our country; Labour has signally failed to do this, cancelling our nuclear power investment. The people suffering from high energy prices in this country today have previous Labour Governments to blame for that mistake. Of course we will look at all sensible measures, but we will be driven by considerations of growth, investment and employment. I just remind the House that unemployment has now hit a record low—or for 50 years, I should say—and half a million more people are now in payroll employment than before the pandemic began.
On the day when inflation went to 9%—the highest rate for 40 years—the least the watching public can expect is a Prime Minister who concentrates on the cost of living crisis. Clearly, he just cannot make his mind up, so let us have a look at who is for this and who is against it. On one side, we have the chair of Tesco; the chair of John Lewis; the Chair of the Treasury Committee; the Chair of the Education Committee; Lord Hague; and Lord Browne, the old chief executive officer of BP. They all support a windfall tax. Even the current boss of BP says a windfall tax would not discourage investment. On the other side, we have the right hon. Member for North East Somerset (Mr Rees-Mogg), who, when he is not sticking notes on people’s desks like some overgrown prefect, is dead set against it. When is the Prime Minister finally going to get a grip, stand up for the people of Britain and get on the right side of the argument?
I would be grateful if the right hon. and learned Gentleman could send me the details of that sad case. The NHS does cover the costs of those who are on dialysis. By the way, the Opposition voted against the vital investment in the NHS that this country needs.
I remind the right hon. and learned Gentleman, and the House, of the key point: none of this is possible—the investment in the NHS is not possible, the £22 billion that we have already put in is not possible and the further investment we are going to put in is not possible—without the strong economy that this Government have delivered. It is because we took the tough decisions that I have mentioned that we have record low unemployment —or a record low for the last 50 years. The Queen’s Speech that we have been debating is about putting in the infrastructure, skills and technology that will continue to build the platform for growth and jobs in this country. That is what this Government are committed to doing and that is the best way out of economic problems.
By the way, I thought it was fantastic to see Her Majesty the Queen open Crossrail. That has already delivered 72,000 jobs and will produce £90 billion for the whole of the UK economy. Let me ask the right hon. and learned Gentleman: who was the Mayor of London when Crossrail was first starting to be built? And who was the Prime Minister who completed it? We get the big things done. There has never been a Labour Government who left office with unemployment lower than when they began.
I would be grateful if the right hon. and learned Gentleman could send me the details of that sad case. The NHS does cover the costs of those who are on dialysis. By the way, the Opposition voted against the vital investment in the NHS that this country needs.
I remind the right hon. and learned Gentleman, and the House, of the key point: none of this is possible—the investment in the NHS is not possible, the £22 billion that we have already put in is not possible and the further investment we are going to put in is not possible—without the strong economy that this Government have delivered. It is because we took the tough decisions that I have mentioned that we have record low unemployment —or a record low for the last 50 years. The Queen’s Speech that we have been debating is about putting in the infrastructure, skills and technology that will continue to build the platform for growth and jobs in this country. That is what this Government are committed to doing and that is the best way out of economic problems.
By the way, I thought it was fantastic to see Her Majesty the Queen open Crossrail. That has already delivered 72,000 jobs and will produce £90 billion for the whole of the UK economy. Let me ask the right hon. and learned Gentleman: who was the Mayor of London when Crossrail was first starting to be built? And who was the Prime Minister who completed it? We get the big things done. There has never been a Labour Government who left office with unemployment lower than when they began.
So the Prime Minister is on the side of excess profits for oil and gas companies; we are on the side of working people—there you have it. He clearly does not like me pushing him on this, but the reason why I keep coming back to this subject, and why it is so frustrating that he has not acted, is that so many people are living through this nightmare and feel totally abandoned by their Government.
This week, I spoke to Phoenix Halliwell. A rare kidney condition means that Phoenix has to do dialysis from home, from 10 pm to 7 am, five days a week, just so he can take his daughter Rosie to school. His dialysis is life-saving, so he cannot turn it off. Even though his wife, who is a midwife in the NHS, works extra shifts, during the winter they had to turn their central heating off, and Phoenix skips meals to make ends meet, but their energy bill has still doubled. Phoenix says he feels like he is being “priced out of existence.” And it is not just him: millions of our disabled, elderly and vulnerable neighbours are at the sharp end of this crisis. They simply cannot afford to live with dignity.
The decisions we make here matter. The cost of indecision is enormous. People across the country need action now. The plans are already there; Prime Minister, stop the delay and work with us to put them in place. Do it for households that face bills they cannot afford, and do it for Phoenix, who simply cannot afford to wait.
What we are doing is making things better for working people than his plans would by a mile. We are putting in more to support people with their energy costs than he would with his new tax on business. We are putting in £9.1 billion, with an immediate £150 cut in people’s council tax. Labour’s thing raises only £6.6 billion, and it clobbers the very businesses that we need to invest in energy to bring the prices down for people across this country. Clean, green energy—the wind farms, the hydrogen that this country needs. What this Government are also doing is reversing the tragic, historic mistake of the Labour party in refusing to invest in nuclear. We are going to have a nuclear reactor every year, not a nuclear reactor every decade, which is what we got under Labour.
What we are doing is making things better for working people than his plans would by a mile. We are putting in more to support people with their energy costs than he would with his new tax on business. We are putting in £9.1 billion, with an immediate £150 cut in people’s council tax. Labour’s thing raises only £6.6 billion, and it clobbers the very businesses that we need to invest in energy to bring the prices down for people across this country. Clean, green energy—the wind farms, the hydrogen that this country needs. What this Government are also doing is reversing the tragic, historic mistake of the Labour party in refusing to invest in nuclear. We are going to have a nuclear reactor every year, not a nuclear reactor every decade, which is what we got under Labour.
It is as if the Prime Minister is only just waking up to the cost of living crisis. And his big idea: fewer MOTs—it actually makes the cones hotline sound visionary and inspirational.
North sea oil producers are making so much unexpected profit that they call themselves a “cash machine”. That cash could be used to keep energy bills down. Instead, the Prime Minister chooses to protect their profits, let household bills rocket and slap taxes on working people who are earning a living. Does he think that that choice has made things better or worse for working people?
That is a classic example of what Labour got wrong during its period in office. The oil and gas companies are now investing £20 billion in ensuring that we have long-term energy supplies. I remember that the 1997 Labour manifesto actually said that there was “no economic case” for more nuclear power. We are now having to make good the historic mistakes of the Labour party by investing in our long-term energy supply. That is what we are doing. Everything that Labour is proposing would deter investment, meaning higher prices for consumers and households up and down the land being worse off.
That is a classic example of what Labour got wrong during its period in office. The oil and gas companies are now investing £20 billion in ensuring that we have long-term energy supplies. I remember that the 1997 Labour manifesto actually said that there was “no economic case” for more nuclear power. We are now having to make good the historic mistakes of the Labour party by investing in our long-term energy supply. That is what we are doing. Everything that Labour is proposing would deter investment, meaning higher prices for consumers and households up and down the land being worse off.
The tough decisions—give me a break! We know who those two always ask to pay: income stealth tax—a tax on working people; the tuition fee raid—a tax on working people; the national insurance hike—a tax on working people. All of this while oil and gas companies see unexpected bumper profits. A windfall tax would raise billions and ease the burden on working
people. The former chief executive office of BP, Lord John Browne, says a windfall tax is “justifiable”. The current CEO says that BP has, in his words,
“more cash than we know what to do with.”
Why is the Prime Minister more interested in shielding oil and gas profits than supporting working people?
I think the right hon. Gentleman is in error in what he says about events last night, but he is, like me, a living testament to the benefits of moderation in all things. To get to his point, this week, for instance, the living wage is going up again by record amounts, and thanks to what the Chancellor has done we are putting £9.1 billion into helping people up and down the country. I might respectfully suggest that the thing the Scottish nationalist Government—with whom, as I say, we work increasingly well—could focus on for the long-term prosperity of Scotland is the educational system, where I am sad to see Scotland’s once-glorious record falling behind.
I think the right hon. Gentleman is in error in what he says about events last night, but he is, like me, a living testament to the benefits of moderation in all things. To get to his point, this week, for instance, the living wage is going up again by record amounts, and thanks to what the Chancellor has done we are putting £9.1 billion into helping people up and down the country. I might respectfully suggest that the thing the Scottish nationalist Government—with whom, as I say, we work increasingly well—could focus on for the long-term prosperity of Scotland is the educational system, where I am sad to see Scotland’s once-glorious record falling behind.
It is good to see the hon. Member for Bridgend (Dr Wallis) in the Chamber, and I commend him for his statement earlier today.
Last night, millions of families will have been desperately trying to figure out how they will possibly afford the £700 energy price hike that will hit them this Friday. At the very same time, Tory MPs were gathering across the street for a champagne bash in the Park Plaza. We all know that the Tories partied during lockdown, and now they are—[Interruption.]
Of course we are doing everything that we can, with the £9.1 billion and the cold weather payments. The right hon. Gentleman is right to draw attention to the problem, and we are making huge investments in supporting people right now, with another £1 billion, by the way, through the household support fund to help vulnerable families. But when he talks about the cost of energy in Scotland, how absolutely preposterous it is that the Scottish nationalist party should still be opposed to the use of any of our native hydrocarbons in this country, with the result that the Europeans are importing oil and gas from Putin’s Russia. It is totally absurd.
Of course we are doing everything that we can, with the £9.1 billion and the cold weather payments. The right hon. Gentleman is right to draw attention to the problem, and we are making huge investments in supporting people right now, with another £1 billion, by the way, through the household support fund to help vulnerable families. But when he talks about the cost of energy in Scotland, how absolutely preposterous it is that the Scottish nationalist party should still be opposed to the use of any of our native hydrocarbons in this country, with the result that the Europeans are importing oil and gas from Putin’s Russia. It is totally absurd.
What a load of absolute baloney. The Prime Minister is dangerously out of touch. Food banks are warning that people are having to choose their food based on whether they can afford the gas to boil it. Families are having to choose what rooms to heat or whether they can turn on the heating at all. Some in the Tory Cabinet clearly believe that better weather means that they can happily sit on their hands and do nothing until next winter. They obviously do not get, or do not care, that in many parts of Scotland the weather will barely reach above freezing over the next week. The Chancellor thinks his £200 loan, which is forcing people into energy debt, is somehow a solution, but it clearly is not. So before the Prime Minister and his Chancellor go off on their Easter holidays, will they, at the very least, turn this loan into a grant and finally put some cash into people’s pockets when they need it, right now?
I understand the pressure that people are under, but the best thing we can do, rather than endlessly taxing more and borrowing more, is make sure that we support people through this tough time, which we are doing, and ensure that we have a strong and growing economy in which we get people into work. We are cutting the cost of energy, but we are also taking the long-term decisions that the Labour party failed to take to invest in our energy for the future.
I understand the pressure that people are under, but the best thing we can do, rather than endlessly taxing more and borrowing more, is make sure that we support people through this tough time, which we are doing, and ensure that we have a strong and growing economy in which we get people into work. We are cutting the cost of energy, but we are also taking the long-term decisions that the Labour party failed to take to invest in our energy for the future.
Q9
.
Catherine West (Hornsey and Wood Green) (Lab):
Gas and electric prices and bills are through the roof. The “just about managing” are no longer managing; they are coming to surgeries and queuing at food banks. Last week, the Government had a golden opportunity to tackle this. Why the devil did they not take that opportunity to do something to relieve the pressure on our constituents?
The hon. Gentleman is right that energy-rich Scotland and the hydrocarbons that we have in this country should be used to help the British people. We should not be needlessly reliant on oil and gas from Putin’s Russia. I think that is the policy of Alba but, unfortunately, is not yet the policy of the SNP.
The hon. Gentleman is right that energy-rich Scotland and the hydrocarbons that we have in this country should be used to help the British people. We should not be needlessly reliant on oil and gas from Putin’s Russia. I think that is the policy of Alba but, unfortunately, is not yet the policy of the SNP.
While Ofgem can cap rising gas and electricity bills, other fuels such as heating oil, liquefied petroleum gas and solid fuel remain unregulated. Many households in rural Scotland depend on such fuels. There are also areas awash with
energy, both on and offshore, yet with huge and rising numbers of people in fuel poverty. Will the Prime Minister regulate and cap such fuels, to alleviate hardship and end the perversity of energy-rich Scotland but fuel-poor Scots?
I agree with my hon. Friend passionately, and I think that it is vital that we undo the damage done by the insane policies of the previous Labour Government, which whacked up the cost of energy for British industry, including steel. I will be bringing forward a British energy security strategy that will address the needs of British steel, British ceramics and the whole of British industry.
I agree with my hon. Friend passionately, and I think that it is vital that we undo the damage done by the insane policies of the previous Labour Government, which whacked up the cost of energy for British industry, including steel. I will be bringing forward a British energy security strategy that will address the needs of British steel, British ceramics and the whole of British industry.
Q12
.
Holly Mumby-Croft (Scunthorpe) (Con):
My right hon. Friend the Prime Minister is a great champion for steel, and we have just had brilliant news on the removal of the US steel tariffs. Will he reaffirm the commitment he made at the Dispatch Box on 31 January that the Chancellor will bring forward a package of measures on our steel energy costs? If the
Chancellor is not able to make good on that commitment today, will he ensure that he does so as soon as he can?
I thank the hon. Lady very much and she raises an important issue. Clearly, the spike in energy prices is going to fall most heavily on vulnerable people such as the ones she mentioned, and we will certainly be looking at ways to abate their costs.
I thank the hon. Lady very much and she raises an important issue. Clearly, the spike in energy prices is going to fall most heavily on vulnerable people such as the ones she mentioned, and we will certainly be looking at ways to abate their costs.
Q4
.
Barbara Keeley (Worsley and Eccles South) (Lab):
As energy costs spiral, I want to raise the issue of people who use extra electricity to charge their electric wheelchairs, or to run ventilators or a stairlift. It is not right that people with a disability or serious medical condition should face unmanageable debt, or go without food, to pay the costs of electricity on which they absolutely rely. They need a real cut to their bills right now. Why is the Prime Minister not looking at drawing on the profits of the North sea oil and gas companies to help the most vulnerable families with those costs?
My right hon. Friend the Chancellor has set out plans to help families with energy costs and unprecedented measures to abate council tax by £150, in addition to all the other schemes that we are putting forward. Yes, the right hon. and learned Gentleman is absolutely right that we need to meet the long-term impacts of the spike in energy prices, which is why I will be setting out an energy independence plan for this country in the course of the next few days, to ensure that we undo some of the damage of previous decisions—not least the Labour Government’s decision not to invest in nuclear—and so that we prepare our people for the long term, with a sustainable, cost-efficient energy supply.
My right hon. Friend the Chancellor has set out plans to help families with energy costs and unprecedented measures to abate council tax by £150, in addition to all the other schemes that we are putting forward. Yes, the right hon. and learned Gentleman is absolutely right that we need to meet the long-term impacts of the spike in energy prices, which is why I will be setting out an energy independence plan for this country in the course of the next few days, to ensure that we undo some of the damage of previous decisions—not least the Labour Government’s decision not to invest in nuclear—and so that we prepare our people for the long term, with a sustainable, cost-efficient energy supply.
The typical energy bill is going up by £700 next month, and that is because of pressures before Russia invaded Ukraine. What is the Chancellor’s solution? A forced £200 loan for every household, to be paid back in mandatory instalments over five years. The big gamble behind that policy was that energy costs would drop quickly after a short spike. That bet now looks certain to fail. When will the Prime Minister force the Chancellor into a U-turn?
If the right hon. and learned Gentleman is asking for the Chancellor to U-turn on the support we are giving families and households, I think that he is absolutely out of his mind. We are going to continue to give people support throughout this difficult period, as we did throughout the coronavirus epidemic, with unprecedented levels of support. We have a £200 discount on bills, a £150 non-repayable reduction in council tax, and £144 million extra to help councils support vulnerable families with their energy bills. Altogether, there is a £20 billion package of financial help that we are giving the British people, and we will continue to do more. A U-turn is the last thing we want.
If the right hon. and learned Gentleman is asking for the Chancellor to U-turn on the support we are giving families and households, I think that he is absolutely out of his mind. We are going to continue to give people support throughout this difficult period, as we did throughout the coronavirus epidemic, with unprecedented levels of support. We have a £200 discount on bills, a £150 non-repayable reduction in council tax, and £144 million extra to help councils support vulnerable families with their energy bills. Altogether, there is a £20 billion package of financial help that we are giving the British people, and we will continue to do more. A U-turn is the last thing we want.
I do not think the Prime Minister understands the mess he is in. Working families are facing a £700 spike in April. They will not even receive their £200 loan from the Chancellor until October. The wholesale price of oil and gas is now ballooning, so by October when the loan finally comes in, household bills are set to shoot up by another £1,000. It is a total mess, so I ask again: when is the Prime Minister going to force the Chancellor to U-turn ?
The net result of that would simply be to see the oil companies put their prices up yet higher and make it more difficult for them to do what we need them to do—which, by the way, I think they are doing very responsibly at the moment—which is divesting from dependence on Russian oil and gas. That is the way forward for this country: to take a sober, responsible approach to end our dependence on hydrocarbons altogether, particularly Russian hydrocarbons. We are taking steps to rectify some of the mistakes made by the Labour Government and have a long-term, sustainable, independent energy supply policy. That is what this country needs.
The net result of that would simply be to see the oil companies put their prices up yet higher and make it more difficult for them to do what we need them to do—which, by the way, I think they are doing very responsibly at the moment—which is divesting from dependence on Russian oil and gas. That is the way forward for this country: to take a sober, responsible approach to end our dependence on hydrocarbons altogether, particularly Russian hydrocarbons. We are taking steps to rectify some of the mistakes made by the Labour Government and have a long-term, sustainable, independent energy supply policy. That is what this country needs.
We will see how long that position lasts. Let me try to help the Prime Minister by coming at this from a different angle. Before Russia invaded Ukraine, North sea oil and gas companies were making bumper profits. BP made £9.5 billion, Shell made £14 billion—in their own words,
“more cash than we know what to do with.”
Since then, the international price of oil and gas has skyrocketed, and so will their profits. When will the Prime Minister admit he has got this badly wrong, put a windfall tax on those super-profits, and use the money to cut household energy bills?
What we are junking is the failed energy policies that left us without enough nuclear power, and what we will do is go forward with policies that allow this country to be independent in our energy supply, maximising renewables, making sure that we use transitional hydrocarbons and going for nuclear as well. As I say, I am overjoyed that Labour now seems to occupy that position. What we will also do, and here the right hon. and learned Gentleman has been supportive, is ensure that as a House of Commons we work together to maintain our opposition to Vladimir Putin’s vile war in Ukraine. There, together with the toughest possible economic sanctions and by maintaining our military support for the people of Ukraine, I have no doubt that although there will be dark days ahead and difficult times, we will come through it stronger. I have no doubt that Vladimir Putin will fail and we will succeed in restoring a sovereign and independent Ukraine.
What we are junking is the failed energy policies that left us without enough nuclear power, and what we will do is go forward with policies that allow this country to be independent in our energy supply, maximising renewables, making sure that we use transitional hydrocarbons and going for nuclear as well. As I say, I am overjoyed that Labour now seems to occupy that position. What we will also do, and here the right hon. and learned Gentleman has been supportive, is ensure that as a House of Commons we work together to maintain our opposition to Vladimir Putin’s vile war in Ukraine. There, together with the toughest possible economic sanctions and by maintaining our military support for the people of Ukraine, I have no doubt that although there will be dark days ahead and difficult times, we will come through it stronger. I have no doubt that Vladimir Putin will fail and we will succeed in restoring a sovereign and independent Ukraine.
Twelve years in power and that is the best the Prime Minister can do. The Ukrainian people are fighting for democracy. We must stand with them, and that means taking the toughest possible measures against Putin. Let us be honest that there will be costs here at home. We can withstand those costs, and we must, by using a windfall tax to keep bills down for working people and by starting a new era of energy policy, never again at the mercy of a dictator, by supporting new nuclear after years of neglect, sprinting on renewables, including onshore wind, and having an urgent national mission to upgrade homes, ending years of dither and delay. Why is the Prime Minister offering the same failed energy policy that cast us into the security crisis and allowed bills to rocket? [ Interruption. ]