The Conservatives have called on Chancellor John Healey to scrap green levies and remove VAT from household energy bills in the upcoming Budget, rather than increasing welfare spending.
The party, led by Kemi Badenoch, is set to argue that a carbon tax and more North Sea drilling would do more to help families than what it describes as a "Benefits Street bailout."
Budget demands ahead of Wednesday statement
The demands come before the first Budget of Andy Burnham's new government, due this Wednesday. The Treasury does not normally comment on financial matters ahead of the Budget.
Andrew Bowie, Shadow Secretary of State for Energy Security, said: "Working families need lower energy bills. They were promised £300 off by Labour at the last election, but in reality they have risen by £367.
"Yet instead of taking the tough decisions needed to get costs down for everyone, John Healey is contemplating another bailout for Benefits Street, leaving hardworking families high and dry.
"Instead, the Chancellor must act now to cut bills for everyone. And he should do that by adopting the Conservatives' Cheap Power plan without any more delay."
North Sea drilling row intensifies
Last week, Mr Burnham's government approved drilling in the Jackdaw gas field, welcoming the decision as "pragmatic." However, the Conservatives criticised the refusal to approve the Rosebank oil field, accusing Labour of "dithering."
Both areas are in the North Sea and are rich in natural resources that supporters of drilling say could help shore up Britain's energy security. Tory MPs are now demanding the Chancellor and Mr Burnham stand up to their backbenchers and approve more extraction in the region.
Decisions on new extraction are subject to a complex approvals process, and the Energy Secretary has the final say.
Labour defends its record
Responding to the Conservative Party's release ahead of the Budget, a Labour Party spokesperson said: "The Tories had 14 years to make Britain more energy secure. Instead, they left us exposed to international shocks and families are paying the price through their bills.
"Andy Burnham's Labour Government is acting now to give people breathing space, including by removing VAT on electricity bills. We've given the green light to the Jackdaw gas field, helping protect hundreds of jobs and keep millions of homes warm this winter, while investing in clean, home-grown energy to reduce our exposure to global shocks and help bring bills down for good."
