Truss refuses to commit to more cost of living support despite shock warnings over spiralling energy bills

9 August 2022, 19:49 | Updated: 9 August 2022, 19:54

Liz Truss has refused to commit to extra support for families struggling with the cost of living crisis.

It comes after analysts delivered a shock warning that energy bills could top £4,200 in the new year.

Liz Truss insisted she would not "write the Budget in advance" but said her priority was driving through tax cuts "from day one" to kick-start the economy.

Her campaign has been forced on the defensive in recent days after she suggested there would be no "handouts" if she won the leadership contest.

But her allies have insisted she is committed to helping families struggling with soaring bills and further direct support has not been ruled out.

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Speaking during a campaign visit to Huddersfield, the Foreign Secretary said that if she became PM she would "see what the situation is like" in the autumn.

In a fresh swipe at rival Rishi Sunak's record at the Treasury, she said that with the tax burden at a 70-year high, the priority had to be economic growth, with a package of emergency tax cuts.

"What I am talking about is enabling people to keep more money in their own pockets," she said.

"What I don’t believe in is taxing people to the highest level in 70 years and then giving them their own money back. We are Conservatives. We believe in low taxes.

"Of course, we will need to deal with the circumstances as they arise.

"I'm not going to write the Budget in advance. We will see what the situation is like in the autumn, but I am committed to making sure people are supported and I am committed to growing the economy."

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However, Mr Sunak's campaign criticised her comments saying: "Liz Truss has doubled down, refusing five times to say she will provide direct support for British families and pensioners this winter.

"Under her plans Liz will get £1800 of support whilst hard working families will get as little as £60."

They added: "Liz's plan will not touch the sides for the majority of British families this winter and pensioners will get no help whatsoever. It seems she is divorced from reality."

In an interview with ITV News, Mr Sunak claimed Ms Truss' tax-cutting plans will not provide "any help" for the least well-off.

He said he was "definitely the underdog" in the leadership race but is "giving it absolutely everything I've got".

Ed Davey calls for energy price cap hike to be scrapped

Experts at Cornwall Insight forecast earlier that bills are now likely to rise to £4,200 from January as wholesale prices surge again.

Ofgem is set to put the price cap at £4,266 for the average household in the three months from the beginning of January.

The energy consultancy said that this was around £650 more than its previous forecast.

It comes as Ofgem last week announced changes to how it will calculate the price cap on energy bills going forward - with squeezed Brits now facing price hikes four times a year - up from just two.

Ofgem said it will now be updated quarterly instead of every six months.