PMQs: Sir Keir Starmer brands Boris Johnson's cost-of-living energy plan as 'dodgy loan'

Boris Johnson and “loan shark” Rishi Sunak have been accused by Labour of operating a “big scam” via their energy bill support package.

Labour leader Sir Keir Starmer used Prime Minister’s Questions on Wednesday as a platform to brand the UK Government’s energy bills relief announcement a “dodgy loan, not a proper plan”.

He was raising concerns over the policy to give all 28 million households in Britain a £200 up-front rebate on their energy bills from October.

This will be recouped by hiking bills by £40 per year over five years from 2023.

Boris Johnson speaks during Prime Minister's Questions in the House of Commons. Picture: House of Commons/PA Wire

Mr Sunak – the UK Chancellor – has also promised a £150 council tax rebate for homes in bands A to D.

Sir Keir told Mr Johnson to “stand up to this Chancellor” by telling him to support families “rather than loading them with debt” and take a look at the “bumper profits” of oil and gas giants.

But Mr Johnson said the Labour plan, which includes a windfall tax on North Sea oil and gas producers, would “clobber” supplies, but joked it was an “improvement” on nationalising the companies.

The Prime Minister said: “What he would be doing is hitting the energy companies at precisely the time when we need to encourage them go for more gas because we need to transition now to cleaner fuels.

“What this Government is providing is £9.1 billion worth of support, it’s more generous than anything Labour is offering.”

But Sir Keir accused Mr Johnson of “bluff and bluster”, adding in the Commons: “The reality is this – on top of the Tory tax rises, on top of the soaring prices, the loan shark Chancellor and his unwitting sidekick have now kicked up a buy-now, pay-later scheme.

“It leaves taxpayers in debt while oil and gas companies say they’ve got more money than they know what to do with.

“It’s the same old story with this Government – get in a mess, protect their mates and ask working people to pick up the bill.

“But isn’t he worried that everyone can now see that with this Prime Minister and this Chancellor it’s all one big scam and people across the country are paying the price?”

Mr Johnson replied: “What they can see is a Government that is absolutely committed to doing the right thing for the people of this country and taking the tough decisions when Labour is calling for us to take the easy way out and spend more taxpayers’ money.”

Sir Keir added: “When his donors give him cash to fund his lifestyle and tell him he has to pay it all back later, are they giving him a loan or a discount?”

Prime Minister Boris Johnson replied: “Our plan to tackle the cost of living is faster, more efficient and more generous than anything that they have set out.

“We’ve lifted the Living Wage by record amounts, we’ve cut the effective tax for people on Universal Credit and we’re now setting out a fantastic plan to help people with the cost of energy, and it is more generous and more effective than anything Labour have set out.”