LIZ TRUSS and Rishi Sunak squabbled yesterday over their plans to ease the impact of looming energy bill hikes amid fresh warnings the UK is facing a "financial timebomb" this autumn.

Both Tory leadership contenders promised help worth tens of billions of pounds over the weekend, with Truss vowing in The Sunday Telegraph yesterday to bring forward a National Insurance cut as early as September.

The Tory leadership frontrunner said she would help Brits facing rising inflation and spiralling energy bills through tax cuts instead of direct payments, saying her proposed policies were "necessary, affordable and the right thing to do at a time when we face the highest tax burden in 70 years".

However, Truss supporter Penny Mordaunt yesterday insisted she had not ruled out emergency payments.

Sunak told The Sunday Times he would "look at doing more and particularly for families like pensioners, for example, where I said that this winter they can get an extra payment worth up to £300".

Sunak said Truss' original call to rule out emergency payments was "simply wrong" and that her plans to bring forward tens of billions of tax cuts would further stoke inflation, which the Bank of England now predicts to hit 13 per cent in October.

Sunak's campaign team said Truss must now clarify her position and say "whether she stands by the statement... ruling out further support payments or has now changed her mind and is willing to consider them".

Investec forecast late last week that the energy price cap will hit £4,210 in January, up from £1,277 at the start of this year.

Warnings of skyrocketing energy bills has sparked a grassroots campaign for households to boycott their energy bills this winter.

Activist group Don't Pay UK, which has gained growing support and attention over the last week, says it was inspired by resistance to the so-called Poll Tax in the late 80s and 90s.

The head of the UK's energy regulator, Jonathan Brearley, warned Brits against not paying their bills, revealing that the move would hike prices for everyone and worsen people's financial woes.

Speaking on BBC Radio 4's Today Programme at the weekend, the Ofgem boss said he recognised that "everyone is extremely worried" about their energy bill, but instead encouraged consumers facing financial difficulties to get in touch with their supplier.

The government also criticised the campaign. A spokesman for the The Department for Business, Energy and Industrial Strategy said: "This is highly irresponsible messaging, which ultimately will only push up prices for everyone else and affect personal credit ratings."

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CONTINUED FROM PAGE 1 "While no government can control global gas prices, we are providing £37bn of help for households including the £400 discount on energy bills, and £1,200 of direct support for the most vulnerable households to help with the cost of living," the spokesman added.

Former Prime Minister Gordon Brown told The Observer yesterday that families are staring down a "financial time bomb" this autumn and that millions will face "a winter of dire poverty" without immediate government action. He called for Boris Johnson and Nadhim Zahawi to reconvene parliament this month during summer recess to announce an emergency Budget.

Investec also warned the pressure on households will only intensify this winter, and that it is "blatantly obvious" what is on the table from both Sunak and Truss is "not enough".

It also called on both leadership hopefuls to get together and agree on a common position before the next painful hike to household energy bills.

(c) 2022 City A.M., source Newspaper