Boris Johnson has been accused of "protecting energy profits and not working people", after he ruled out a windfall tax on power firms to offset rises in fuel prices.
A typical household will face an annual increase of more than £600 on their energy bill from next month, as a new energy cap comes into effect.
But many now fear prices will surge even higher, given the conflict in Ukraine and Europe's reliance on Russian gas.
Labour leader Sir Keir Starmer, speaking at prime minister's questions, called on Mr Johnson to step up support for households and urged him to consider a tax on energy firm profits.
He said: “The typical energy bill is going up by £700 next month and that’s because of pressures before Russia invaded Ukraine.
"The Chancellor’s solution: a forced £200 loan for every household 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?”
Mr Johnson responded: “The Chancellor has set out plans to help families with energy costs with unprecedented measures to abate council tax by £150 in addition to all the other schemes that we are putting forward.
“Yes, he’s absolutely right that we need to meet the long-term impacts of the spike in energy prices and that’s 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 taken, not least by the Labour government not to invest in nuclear."
Sir Keir told the Prime Minister he had got his strategy "badly wrong", he said: "I don’t think the Prime Minister understands the mess he’s in. Working families are facing a £700 spike in April, they won’t 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’s a total mess."
The Labour leader told the prime minister his resistance to a windfall tax on energy giants revealed he was more concerned about "protecting energy profits and not working people".
Mr Johnson said his response was "sober and sensible", adding: "We have a £200 discount on bills, £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. I think a U-turn is the last thing we want.”
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