Party leader Keir Starmer said that Labour “wouldn’t let people pay a penny more” on their winter fuel bills, which would save a typical family around £1,000.

The plan would cost £29bn but would be paid for through an extension of the windfall tax on oil and gas firms that was announced in May after months of mounting pressure from MPs and public bodies on then-Chancellor Rishi Sunak.

Currently, the tax will pay for a £400 discount on household energy bills over the winter, although with the price cap estimated to rise to over £5,000 by January, the money will offer little respite from the soaring bills.

Labour estimates that its plan would bring inflation down by 4 per cent – which would lower the likelihood of future interest rate rises.

“Britain’s cost of living crisis is getting worse, leaving people scared about how they’ll get through the winter,” Starmer said.

“Labour’s plan to save households £1,000 this winter and invest in sustainable British...