Full Fact: Labour’s Energy Policy is £8 Billion Short of Being “Fully-Funded”

Full Fact has new analysis out this morning showing Labour’s policy of freezing the energy price cap at current levels has a multi-billion costings black hole at its heart. Their analysis says freezing the cap would cost around £8 billion more than Labour calculates, as they haven’t taken into account most consumers’ higher gas and electricity consumption during a typical winter. The fact-checking website previously said Labour’s “fully-funded” plan was out by around £2 billion. Now the IFS has flagged another problem…

The IFS told Full Fact:

“Energy use rises enormously over the winter months, and, as they stand, Labour’s plans would not cover the cost of freezing prices for the additional energy consumed by households over this period.

The roughly £8 billion of costs the plan does not currently cover would either need to be paid for by the government, energy suppliers or households.”

This £8 billion figure is in addition to previous IFS criticism that Sir Keir’s radical plan is an “illusion” as the party factored in £7.2 billion of savings from debt interest payments due to the lower inflation the freeze would cause. Obviously the moment the freeze was ended – as it would have to at some point – inflation would rise again and wipe out those savings.

The party also factored in £2 billion towards the policy from “not going ahead with either of the two proposals from the Conservative leadership candidates: cuts to green levies, proposed by Liz Truss, or cutting VAT, proposed by Rishi Sunak.” Given neither of these proposals are current government policy, deciding not to implement them saves precisely £0.

Labour’s had all summer to come up with one policy while the Tory Party tears itself apart, and it has around £17.2 billion of questionable sums behind it. Labour’s response has been to attack the fact-checking website, telling Politico “Full Fact don’t understand how energy bills work”… 

mdi-timer 26 August 2022 @ 08:37 26 Aug 2022 @ 08:37 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Rupa Huq’s Commons Truthfulness Hypocrisy

On July 7, Labour MP Rupa Huq confidently told the Commons, “The Independent reports that the PM and Tory Ministers resigning are entitled to £420,000 of severance pay… Can he confirm now from that dispatch box that they will be forfeiting their right to this? Because we do not reward failure.” Unfortunately for Huq, FullFact has just investigated this figure and concluded it was widely off the mark, by up to 100%. In other words, Huq misled the House…

Huq’s false figure, ironically, had come from the LibDems, who then fed it to The Independent, and was then quoted by Rupa in the Commons. How did the LibDems – who have now accepted to FullFact that the estimate was not correct – get it so wrong?

Primarily, they included PPSs, who are unpaid, and therefore entitled to a grand total of zero severance pay. Some ministers were also calculated under the wrong pay band, with Neil O’Brien and Jo Churchill being listed as Ministers of State rather than Parliamentary Under Secretaries of State – the former being entitled to a thousand or so more sterling upon leaving office. The LibDems’ new figure, which Full Fact broadly agrees with, is half that Rupa Huq proclaimed to the Commons: £245,487…

This all poses some awkwardness for Huq, who has spent years accusing Boris of lying to the Commons. In October 2020 she tweeted the PM had “blatantly barefaced lied to the House of Commons” over TfL. In April 2022 she tweeted Boris had “lied and lied to Parliament”. In January she said “He’s lied to Parliament”. Unfortunately for Rupa, Labour’s stitch-up Privileges Committee has now confirmed that intent is broadly irrelevant to the issue of whether one misleads the House. Guido hopes for a correction of the record as soon as possible…

mdi-timer 22 July 2022 @ 10:25 22 Jul 2022 @ 10:25 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
FullFact Slams Labour for Continuing to Push False Cost of Living Sums

Despite an ongoing holier-than-thou campaign about truth in politics, this morning Labour has been slammed by fact-checkers for continuing to publish statistics claiming the average household will be “£2,620 worse off” as a result of the “cost of living crisis”. This calculation is, in fact, 274% off the real figure…

On 8 April, FullFact first called out this statistic, labelling it as false as it’s “based on unreliable assumptions, and it excludes wages and benefits, which are rising. Official estimates suggest that the average household will be roughly £700 worse off in 2022/23.” Despite FullFact contacting Sir Keir’s office about the claim at the time, they received no response, and the party has refused to share full details of how its estimates were calculated.

Today the website’s had to redouble its fact-checking efforts as it emerges not only is the party unable – or refusing – to justify the sums, Labour HQ is actively selling the leaflet to local election campaigns with the figure featuring prominently. The leaflets have also been slammed by some on the left of the party for having “final demand” stamped on the envelope…

Shadow Education Secretary Bridget Phillipson was censured for having repeated the claim on Facebook since FullFact previously called the party out, and they note the party has pushed out at least four active Facebook adverts since they were contacted about the inaccuracy. At this time Guido turns to the words of the Right Honourable leader of Her Majesty’s Opposition spoken in the Commons just yesterday: “honesty, integrity and telling the truth matter in our politics. That is not a principle that I or the Labour party have a special claim to. It is a British principle.”

mdi-timer 22 April 2022 @ 09:04 22 Apr 2022 @ 09:04 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Labour’s Own Sums Say Sadiq’s £30 Million Staffing Bill Could Buy 1,000 Police

Official figures out today show Sadiq Khan’s time in office has resulted in a £30 million increase in City Hall staffing costs – a rise of 82%. All the while the rest of London runs like clockwork…

In 2017, Labour claimed £300 million would pay for 10,000 police officers. Whilst this claim was rubbished by Full Fact as it didn’t take into account training, equipment and overheads, according to Labour HQ’s methodology Khan’s self-centred publicity cost rises could have funded an extra 1,000 police to keep London safe. It’s staggering Khan’s popularity remains steady…

mdi-timer 16 January 2020 @ 11:44 16 Jan 2020 @ 11:44 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments