LLOYD Russell-Moyle has called for the nationalisation of energy companies to protect people from falling into fuel poverty.

The MP for Brighton Kemptown backed Labour leader Sir Keir Starmer’s plan to freeze the price cap and said: “What’s the point of the price cap unless it keeps prices down?”

Mr Russell-Moyle also said that, as 75 per cent of the country’s energy is produced domestically, the rest should be subsidised by the government.

He said: “Any company that can’t sell at that price should be let fold and operations nationalised.”

The Labour Party will call on the government to block a hike to the energy price cap in October and end energy “injustice” by preventing people on prepayment meters from paying more for their gas and electricity.

Russell-Moyle’s comments come just days after forecasts by consultants Cornwall Insights projected that the energy price cap could surge to £4,266 from January, from the current rate of £1,971.

According to the think-tank The Resolution Foundation, poorer households will be forced to cut back around a quarter (24 per cent) of their “non-essential” spending in order to heat their home, pay rent and afford food in the first three months of next year.

The jump in energy costs will coincide with winter when household demand increases substantially - with nearly half of annual household gas costs coming from usage between January and March.

Karl Handscombe, senior economist at The Resolution Foundation, said: “With the support package announced in May now clearly hundreds of pounds per household short of what will be needed, and households already facing difficult budgeting decisions, the government will need to act swiftly to put in place the necessary energy bill support this winter.”

A government spokeswoman said that eight million of the country’s most vulnerable households will see £1,200 in extra support to cover the cost of energy bills this winter.

She said: “We know the pressures people are facing with rising costs, which is why we have continually taken action to help households by phasing in £37 billion worth of support.”