A new tax on energy companies' profits as gas prices soar is needed to help people survive the cost of living crisis, the Labour Party says.
On a visit to Gateshead on Thursday, Shadow Chancellor Rachel Reeves insisted a one-off tax on those selling North Sea oil and gas could be used to scrap VAT on energy bills and support those struggling the most.
With the Chancellor's Spring Statement set to be unveiled on March 23, she said more had to be done to help struggling families.
Read more: North East families facing 'destitution' during cost of living crisis
She told ChronicleLive: "I'm really worried about what's happening with gas and electricity prices. People have already seen their bills rise, 30 energy companies have gone bankrupt - and that's more than any other country around the world - and in April the average bill is going to go up by almost £700.
"The government is sitting on their hands and doing nothing. Their only answer to this is some 'buy now, pay later' scheme that takes some money off your bill this year, but then bills are going to be higher for years to come. That's not the solution that people need.
"That's why Labour have said that we would put a one-off windfall tax on the big profits being made by North Sea oil and gas companies at the moment, because those inflated prices that are pushing up everyone's bills are also inflating the profits of some companies.
"So it's right that we ask them to pay a bit more in tax so we can take VAT off everyone's gas and electricity bills and then massively expand the warm homes discount so that families and pensioners on more modest and low incomes get additional support to tide them through these really difficult times."
The MP was visiting Northern Gas Network's prototype 'hydrogen homes', a pair of houses powered entirely by hydrogen, which runs the boiler and can even produce flames to cook on just like conventional gas hobs. Unlike natural gas, hydrogen produces no planet-harming carbon dioxide at the point of emission and can be produced using green renewable electricity.
Proponents of the power source also point out it could be produced in the UK, reducing dependence on foreign powers - including the likes of Russia, as Britain attempts to end use of Russian oil by the end of the year following the invasion of Ukraine. Ms Reeves said the move to end reliance on Russian oil was coming too late, saying the Government should have spent "the last decade" investing in nuclear and renewable energies.
She said: "The crisis in Ukraine must tell us that we've got to wean ourselves off imported oil and gas, and the Prime Minister going cap in hand to [Saudi Arabia] going from one autocratic regime to another is not a viable energy security strategy. What is a viable energy security strategy is doing what we can to invest in and boost production here in the UK, including with hydrogen along with other forms of energy."
Signalling her support for the move towards hydrogen power, she called on the government to embrace hydrogen and "bring the jobs of the future here", saying that the Conservative 'levelling up' strategy was failing to produce green jobs "at the speed we need".
She said: "Hydrogen is an area where Britain has the potential to lead the world, to create that low-carbon energy here, but most importantly creating a good quantity of high-paid jobs across the country including here in Gateshead and across the North East of England."
Along with representatives of Northern Gas and Power, the Shadow Chancellor met with Hazel Nolan, North East regional secretary for the GMB Union. She echoed calls to move forward with bringing hydrogen power and production into the energy network to promote both energy and job security in the region.
She said: "The North East is going to be a battleground between Labour and the Tories at the next election and that will be won by whoever can make the best case for jobs."
