Some people won't have money left after paying for essentials, warns Rachel Reeves

3 February 2022, 15:15 | Updated: 3 February 2022, 16:02

By Sam Sholli

There are people who "won't have any money left after paying for the essentials", the Shadow Chancellor has warned amid the cost of living crisis.

Labour Shadow Chancellor Rachel Reeves made the comment while speaking to LBC's Shelagh Fogarty.

Her words come after Ofgem has confirmed that the energy price cap will rise by £693 per year to £1,971.

Chancellor Rishi Sunak has announced that the Government intends to support people through £200 discounts on bills, a £150 council tax rebate for those with properties in bands A-D, and giving local authorities a discretionary fund of £150 million to "help those lower income households" who may live in higher council tax properties, or who are exempt altogether.

READ MORE: Energy bills soar by £693 and interest rates double as support branded 'sticking plaster'

Speaking in the House of Commons, Mr Sunak said: "The price cap has meant that the impact of soaring gas prices has so far fallen predominantly on energy companies, so much so that some suppliers who could not afford to meet those extra costs have gone out of business as a result.

"It is not sustainable to keep holding the price of energy artificially low. For me to stand here and pretend we don’t have to adjust to paying higher prices would be wrong and dishonest.

"But what we can do is take the sting out of a significant price shock for millions of families by making sure the increase in prices is smaller initially and spread over a longer period."

Rachel Reeves told Shelagh: "One of the problems with these massive increases in gas and electricity prices is that people are going to have less money to spend on their local high street and in the local cafes because more of their money is going to be taken up by the essentials.

"And, Shelagh you know, some people won't have any money left after paying for the essentials.

"It's incredibly worrying."

READ MORE: Millions pushed into poverty in energy crisis, warns plumber who helps families for free

READ MORE: Cost of living crisis: Stark warning families face biggest fall in living standards in 30 years

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