'Bigger fish to fry' than criticising energy bosses’ salaries, Cabinet minister insists

There are "bigger fish to fry" than criticising energy bosses’ salaries amid the cost of living crisis, a Cabinet minister insisted when challenged on the salary of one boss which exceeds £10 million.

Mark Spencer, leader of the House of Commons, said it was wrong to "have a pop" at the earnings of chief executives rather than focussing on support for Britons this winter.

It comes as a bleak new forecast on Thursday warns that annual energy bills could pass £5,000 next April. Consultancy Auxilione said Ofgem may have to set the price cap at £5,038 per year for the average household amid elevated gas prices.

Experts warned the cap could hit £4,467 in January – likely to be a more worrying figure for households as it coincides with peak usage. Such a scenario would leave the average household paying £571 for energy in January.

When told that the boss of one British energy giant earns almost £11.5 million, Mr Spencer said: "That seems like a very large figure to me, and certainly on my salary and to my constituents that feels like a large figure.

"In the context of things, actually, when there's 65 million people in the country, it's 30p, 20p a person, so I think actually there are bigger fish to fry here, which we can try and solve the challenges than to have a pop at the chief executive's salary.

"I think whilst it sometimes makes great politics, it actually doesn't affect people's bills, which we need to be focused on, in the autumn."

'There are huge challenges coming up this winter'

Speaking to LBC, Mr Spencer admitted energy companies must still focus on "how they can try to assist" households with the cost of living crisis, as food and electricity prices continue to rise for millions.

"There are huge challenges coming up this winter and we need energy companies working with us to try and solve some of the challenges," he said.

"They are making very huge margins at this moment in time, and they ought to be able to assist people and try to suppress those bills as much as physically possible."

But he insisted it was for Kwasi Kwarteng, the Business Secretary, and Nadhim Zahawi, the Chancellor, to decide on the best approach in the short-term.

'We need a balanced system of energy production'

Mr Spencer, who is supporting Rishi Sunak in the Tory leadership contest, declined to rule out a further windfall tax, adding: "We do need those companies, of course, to invest in the future as well.

"Because what we need to do as we move forward over the next decade is make sure we’ve got a balanced system of energy productions, which is not only based on hydrocarbons but also new technologies as well."

He went on to indicate an emergency Budget, which was promised by Liz Truss "immediately" if she becomes prime minister, would not be needed because financial support can be introduced regardless.

"I don’t actually think that’s necessary," he said. "If you look at what Rishi did when he was Chancellor, he actually put a lot of support mechanisms in place which he was able to do without the necessity of an emergency Budget."

Speaking to the BBC on Wednesday night, Mr Sunak declined to make "false" economic promises and revealed future direct support would not match the £15 billion he introduced in May as chancellor, instead amounting to a "few billion".

"There is a huge difference between what I’m suggesting which is temporary, targeted support compared to what Liz is proposing, which is £50billion of extra unfunded borrowing, not just this year, but every year," he said.

"My approach and my path is to help people with the cost of living and directly support them."