The Richmond Park MP has criticised today's Budget for failing to do more to protect households against sky-high energy bills.

Chancellor Jeremy Hunt has decided to keep the Energy Price Guarantee cap on tariffs at a level that equates to a typical annual bill of £2,500, rather than going ahead with a planned increase to £3,000.

However, Sarah Olney, the MP for Richmond Park and the Lib Dem Treasury spokesperson argued the Chancellor should have gone further and announced a £500 cut, so bringing it down to £2,000.

She also pointed out that all households are set to lose out because a separate scheme worth £68 a month to help with energy bills is being scrapped by the government.

The Liberal Democrats say the £500 reduction should be funded through a 'proper windfall tax on the record profits of oil and gas companies'.

Sarah Olney said: "The Conservatives government's choice to hike energy bills will come as a hammer blow to families in London already struggling with soaring mortgages and rents, shopping bills and tax rises.

"These plans will push more families into fuel poverty, while oil and gas companies making record profits are let off the hook.

"The Conservatives are so out of touch they might as well be on a different planet.

"In these tough times, local people deserve a proper plan to tackle this cost-of-living crisis. That means a proper windfall tax, a £500 cut to energy bills and investment in our local health services."

Chancellor Jeremy Hunt. Credit: HM Treasury.

Jeremy Hunt insisted that not going ahead with an increase in the energy price cap to £3,000 should be seen as a positive.

"High energy bills are one of the biggest worries for families, which is why we're maintaining the energy price guarantee at its current level," he said.

"With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too."