Labour piled pressure on Boris Johnson to act over energy bills today after claiming it would cut bills by up to £600 for the worst off if it was in power.
Shadow chancellor Rachel Reeves said the party would scrap VAT for a year and impose a windfall tax on north sea producers to tackle the emerging cost of living crisis.
The £6.6 billion plan would include removing VAT on domestic energy bills for a whole year, as well as expanding and increasing the warm homes discount for those most at risk.
Boris Johnson previously used cutting VAT as a reason to leave the EU, but has since opposed it as a 'blunt instrument' that does not help those most in need.
The tax would reduce average bills by £200, with targeted support for low earners, pensioners and the 'squeezed middle' adding £400.
The producers would be forced to contribute £1.2 billion to help fund the proposals, through a year-long increase to their corporation tax of 10 percentage points.
Shadow chancellor Rachel Reeves blamed ministers for creating a 'price crisis' by responding to surging wholesale energy costs with 'dither and delay' as she detailed the plan.
She told Sky's Trevor Phillips on Sunday: 'The Prime Minister was the biggest advocate for cutting VAT on gas and electricity bills during the European referendum. But now when cutting those bills would make more difference than ever, the Prime Minister says no.
'Well, I say that bills can't be paid on broken promises. The Government should honour that commitment that the Prime Minister made to take VAT off gas and electricity prices.
'If this isn't the time to do it, then frankly I don't know when is.'
And she warned that Russian leader Vladimir Putin increasingly had the UK 'over a barrel' due to his control over gas supplies to western Europe.
Shadow chancellor Rachel Reeves said the party would scrap VAT for a year and impose a windfall tax on north sea producers to tackle the emerging cost of living crisis.
She warned that Russian leader Vladimir Putin increasingly had the UK 'over a barrel' due to his control over gas supplies to western Europe
The Government is under increasing pressure to act, with experts predicting a 50 per cent hike to bills in April, meaning an average household paying about £700 more per year.
Labour says its plan would save most households about £200, while targeted support to low earners, pensioners and the squeezed middle would save them £600.
