Cost of living – live: ‘Lame duck’ Johnson holidays as Labour energy plan puts pressure on next PM

Boris Johnson will spend his final fortnight in No 10 highlighting existing cost-of-living support – but struggling households should not expect any more help until he leaves, despite today’s bleak Ofgem forecast.

Mr Johnson’s sucessor will be confirmed on 5 September, when either Liz Truss or Rishi Sunak emerges as the victor in the Tory leadership race.

The formal handover of the government reigns is due to take place the following day (6 September).

The outgoing prime minister, who will also focus broadly on the war in Ukraine, is expected to divide his time between Downing Street and his country retreat Chequers this week, after returning from a Greek holiday.

“A large focus this week is on reiterating our support for Ukraine, and that is an unwavering commitment that we have to supporting Ukraine in the face of an illegal war,” a No 10 spokeswoman said.

“The government is also focused on supporting people with the cost of living and making sure that those who are eligible for the £37 billion of support that’s already available through our phased-in plan are availing themselves of it.”

As Britons know all too keenly, major policy decisions are postponed – including any new support for tackling soaring bills – until the new PM is formally installed in No 10.

Water companies have faced legal action from regulators since 2015, No 10 has said.

A Downing Street spokeswoman said: “The Environment Agency has brought 48 prosecutions against water and sewerage companies, securing fines of over £137 million.”

She added that since privatisation the equivalent of £5 billion had been invested to upgrade water infrastructure but the companies must “continue to take action”.

The price cap for energy bills could rise to £5,341 by April next year, a new forecast warns.

Consultancy firm Cornwall Insight issued the estimate in its final forecast for the year, with households facing an 80 per cent rise in bills going into the winter period when energy use soars.

It is the final forecast from the consultancy before regulator Ofgem announces the new price cap on Friday, which will come into effect on October 1 and last until the end of the year.

Matt Mathers has more on this breaking story:

Rishi Sunak has accused Liz Truss of “promising the earth to everybody”.

“You can’t have your cake and eat it,” he said.

He rejected the suggestion that his campaign strategy, compared to that of Ms Truss, was not “politically savvy”.

“It is being honest and for better or worse, that is what I am going to do.”

“I’d love a tax cut, who doesn’t?” he told BBC Radio 2. “But I think my priorities are the right ones for the country right now.”

“Liz’s plans are promising the earth to everybody. I don’t think you can have your cake and eat it. I don’t think life is that simple and I think her plan risks making everything worse.”

People should carry on using as much energy as they want because there is no risk of winter blackouts, No 10 says – dismissing expert warnings.

Former government advisers have urged the government to copy the EU by levelling with the public about the need to reduce demand to avert a supply shortage, as well as to cut their rocketing bills.

But Boris Johnson’s spokeswoman insisted there is no need for the UK to act because, unlike most EU countries, it is not dependent on Russian gas imports.

Our deputy political editor Rob Merrick has more:

Water companies have a duty to put “customers before shareholders” and should reduce sewage discharges, Downing Street has said.

A No 10 spokeswoman said: “We have been clear that the failure of water companies to adequately reduce sewage discharges is completely unacceptable.

“They have a duty to put their customers before shareholders and we would expect them to take urgent action on this issue or face fines.”

The spokeswoman continued: “We continue to speak regularly with them, the Environment Agency undertake enforcement action and monitoring, which we have stepped up.”

Rishi Sunak has suggested he would turn down a job in a Liz Truss cabinet if he loses the Conservative leadership contest – saying he would not want to disagree with another prime minister on “big things”.

The foreign secretary, who remains strong favourite to win the race and become the next PM, has reportedly earmarked Sunak as a possible health secretary.

Asked on BBC Radio 2 if he would take the health secretary job, Sunak laughed and replied: “I’m not focused on all of that. I’m trying to win this race at the moment – I’m not thinking about jobs.”

Adam Forrest reports:

Rishi Sunak said he “wouldn’t get out of bed” if he looked at successive Tory membership polls putting Liz Truss firmly on course to enter No 10 in early September.

“If I actually spent all my time looking at the polls or reading newspapers, I probably wouldn’t get out of bed in the morning to do all these things,” he told BBC Radio 2 host Vanessa Feltz.

Sunak insisted that he is getting a “very warm” reception on the campaign trail, but admitted that some Tory members remained upset that he resigned from Boris Johnson’s government.

“There are a group of people, among our members and that is understandable, who are upset I resigned from government – and that’s fair enough,” he said.

A controversial UK power plant could receive public money if it adopts a carbon capture technology derided as ‘greenwashing’.

Drax power station in North Yorkshire, a former coal-fired power station which now runs on “biomass” made up of imported waste wood, may receive subsidies for a process known as BECCS that captures and permanently stores carbon dioxide (CO2) produced by burning the fuel.

The Government last week launched a consultation on potential business models for the concept and Drax is to receive subsidies for its plans, reports the Yorkshire Post.

Samuel Webb has more: