The former prime minister’s intervention comes as new figures seen by the Observer show that more than 4 million households are set to spend a quarter of their net income on energy. “The reality is grim and undeniable: a financial time bomb will explode for families in October as a second round of fuel price rises in six months sends shockwaves through every household and pushes millions to the brink,” Brown writes in Sunday’s Observer. “The more the Conservative leadership election heats up, the more the remaining candidates resort to claiming the moral high ground. Increasing debt is ‘immoral’, says Rishi Sunak. “High taxes are immoral,” responds Liz Truss. But there is nothing moral about uncaring leaders condemning millions of vulnerable and blameless children and pensioners to a winter of dire poverty.” He adds: “Boris Johnson, Sunak and Truss must this week agree an emergency budget. If they don’t, parliament should be recalled to force them to do so.” This follows the Bank of England’s gloomy forecast last week that inflation will jump to 13% in October. There have also been predictions that UK energy bills could reach over £3,600 a year this winter. As pressure for action mounts, senior Labor sources have confirmed to the Observer that the party is preparing to back a key intervention designed to curb the winter crisis, in addition to scrapping VAT on energy bills which it has already backed. Labor leader Keir Starmer and Rachel Reeves, the shadow chancellor, have yet to finalize the package but have concluded that major measures are needed. “We recognize that this is an emergency and it requires a response that fits the moment,” a senior Labor source said. Brown’s call for immediate action was backed by shadow climate change secretary Ed Miliband. “Families across the country are facing a devastating increase in energy bills,” he said. “Meanwhile, the Tories are missing in action and the two leadership candidates have nothing to say about the cost of living. “The government urgently needs to provide more support to help people cope this winter, including scrapping the Tories’ tax break for oil and gas producers, who are making record profits at the expense of ratepayers.” The Energy Profits Levy also offers 91p of tax savings for every £1 of investment companies make. Photo: Bluegreen Pictures/Alamy It comes as the Observer has obtained new research which reveals the scale of the looming crisis. By January, there will be 4.2 million households – or around 11.6 million people – spending more than a quarter of their net income on fuel, according to a study by the University of York’s social policy research unit. It also found that more than 3 million households will spend at least 30% of their net income on fuel by January. A separate report by Professor Donald Hirsch at Loughborough University found that existing government support for low-income households is failing to cover the shortfalls they now face. Some families will be up to £1,600 worse off a year, the study found. Matt Copeland, head of policy at the National Energy Action Group, said the poorest could be protected with the right action. “With energy bills so high, this winter will be a nightmare for millions in the UK,” he said. “However, we want to make it clear that this can be avoided. The UK Government has the power to save millions from the hardships of cold housing, crushing debt and unsafe coping tactics.’ Rishi Sunak advocated the abolition of VAT on energy bills. Photo: Jacob King/PA Brown said local charities he knew were now stocking up on blankets, quilts, sleeping bags and hot water bottles as they prepare for “the worst winter in living memory”. He said it would have a devastating effect on child poverty. “Britain is producing a neglected generation of young boys and girls, without money to join in what their friends are doing, and whose childhoods are beginning to resemble shameful scenes from a Dickens novel,” he writes. He has now joined dozens of faith groups, charities and local politicians to call on the government to take urgent action. There is no plan for the leaders-in-waiting to agree on any joint program before the appointment of a new prime minister next month. Asked how she would help those affected by high energy costs, Truss said last week that she would help by cutting taxes rather than “handouts”. He advocated cuts to national insurance and a suspension of green bill levies. Sunak has backed the abolition of VAT on energy bills, but wants to prioritize tackling inflation. “The high rate of inflation is worrying everyone right now,” a campaign spokesman said. “We have to do everything we can to catch inflation and quickly. There is no doubt that the country is facing a tough winter – we have to be honest with people about that. As Prime Minister, Rishi will look at every possible lever available to help those struggling with higher prices and their bills.” A Downing Street source said Johnson believed major budget decisions should be left solely to the next prime minister. A government spokesman said: “We know that rising prices caused by global challenges are affecting how far people’s incomes go and many will be worried by the latest economic forecasts. We are constantly taking action to help households with £37bn of phased support throughout the year, including special support to help people get through the difficult winter ahead. “Eight million of the most vulnerable households will see extra support of £1,200, delivered in installments throughout the year, and everyone will receive £400 over the winter to help with their energy bills. This is on top of action earlier this year, including a record cut in fuel and a cut in national insurance worth up to £330 a year for the typical employee.’
