The energy secretary has admitted that Rishi Sunak’s flagship energy policy will not bring household bills down.
Claire Coutinho was quizzed about the government’s plans to expand North Sea oil and gas exploration, expected to be announced in the King’s Speech tomorrow.
The prime minister will declare the drive, which would invite annual applications for new licences to drill for oil and gas, will protect jobs and boost energy security “without adding undue burdens on households”.
But as families continue to grapple with sky-high energy bills, Ms Coutinho admitted that the plans “wouldn’t necessarily bring energy bills down”.
She said the measures were more to ensure “security” of energy supply, telling BBC Breakfast: “It wouldn’t necessarily bring energy bills down, that’s not what we’re saying, but it would as I say raise a significant amount of money that would help us, for example, fund public services, also fund transition into different forms of energy, for example, things like offshore wind and solar energy, which more broadly and indirectly could help bring bills down.”
Labour said Ms Coutinho’s admission that the government’s energy measures would not necessarily cut household bills showed it had “given up” trying to cut the cost for British families.
Responding to Ms Coutinho’s comments, her opposite number, Labour’s Ed Miliband, said: “It is a stunning admission from this government that, during the worst energy bills crisis in generations, their flagship King’s Speech energy policy won’t even take a penny off energy bills.
“The Conservatives are so out of touch that they have given up trying to bring down energy bills for British families.
“Instead, they will hand billions of taxpayer subsidies to the oil and gas companies making record profits, undermine our energy security and contribute to climate disaster.
“Only Labour can bring down energy bills once and for all, by investing in homegrown clean power that we can control in Britain.”
Under plans to be unveiled this week, the government will legislate to ensure new licences can be awarded every year, despite pledges to reach net zero carbon emissions by 2050.
The government says the change will boost energy security, reduce dependence on “hostile foreign regimes” and give the industry long-term confidence.
The move is part of a wider Conservative strategy to open up dividing lines with Labour under Sir Keir Starmer, who has promised to halt new oil and gas licences.
