Miliband's energy price cap is a brilliant trap for the Tories

The Tories' natural aversion to price controls means they will struggle to support a cap, leaving Miliband free to present Cameron as siding with the companies over the consumers.

After spending the summer telling voters that they're worse off under the Tories, Ed Miliband knew that he needed an emblematic policy that would show them how they'd be better off under Labour. The result, unveiled in his speech, was a pledge to freeze energy prices until 2017. Miliband said: "The next Labour government will freeze gas and electricity prices until the start of 2017. Your bills will be frozen, benefitting millions of families and millions of businesses. That is what I mean by a government that fights for you. That's what I mean when I say: Britain can do better than this."

One senior Labour strategist told me after the speech that the party had focused-grouped the policy and that voter approval was "off the scale". Polling has consistently shown that of every 'cost-of-living' issue, it is energy prices that are the public's greatest concern. With this intervention, Miliband has framed himself as a strong leader prepared to stand up to predatory firms on behalf of the little guy. He noted that "the companies won't like it because it will cost them money" but added: "they have been overcharging people for so long because the market does not work. And we need to press the reset button." The party calculates that the move, which will be backed by legislation in the first month of a Labour government, will save consumers £120 and businesses £1,800.

While the Tories have capped benefits and immigration, Miliband has smartly borrowed this device to show how Labour would tackle the 'cost of living crisis" it has so often bemoaned. The question now is how the Conservaties will respond: will they steal it or kill it? David Cameron has promised action to force firms "to give the lowest tariff to their customers" but this falls well short of Miliband's pledge, and charities and consumer groups warn that it will have little meaningful effect on prices.

So far, the Tory attack machine has responded by claiming that Miliband's commitment to a 2030 decarbonisation target would add £125 to households' energy bills but soon Cameron will be forced to answer the question that Labour will inevitably pose: are you for a cap or against one?

The Tories' natural free-market aversion to price controls means it will be hard for Cameron to support any form of cap, but he will be reluctant to allow Labour to claim that he has taken the side of companies over consumers and again stood up for the "wrong people". At the moment, the Tories' response to Miliband's cap seems to be to change the subject. But as Labour found in the case of welfare and immigration, that is a politically fraught course. With his announcement today, Miliband has set a brilliant trap for Cameron that the Conservatives will struggle to avoid walking into. 

Ed Miliband delivers his speech to the Labour conference in Brighton. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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What do Labour's lost voters make of the Labour leadership candidates?

What does Newsnight's focus group make of the Labour leadership candidates?

Tonight on Newsnight, an IpsosMori focus group of former Labour voters talks about the four Labour leadership candidates. What did they make of the four candidates?

On Andy Burnham:

“He’s the old guard, with Yvette Cooper”

“It’s the same message they were trying to portray right up to the election”​

“I thought that he acknowledged the fact that they didn’t say sorry during the time of the election, and how can you expect people to vote for you when you’re not actually acknowledging that you were part of the problem”​

“Strongish leader, and at least he’s acknowledging and saying let’s move on from here as opposed to wishy washy”

“I was surprised how long he’d been in politics if he was talking about Tony Blair years – he doesn’t look old enough”

On Jeremy Corbyn:

"“He’s the older guy with the grey hair who’s got all the policies straight out of the sixties and is a bit of a hippy as well is what he comes across as” 

“I agree with most of what he said, I must admit, but I don’t think as a country we can afford his principles”

“He was just going to be the opposite of Conservatives, but there might be policies on the Conservative side that, y’know, might be good policies”

“I’ve heard in the paper he’s the favourite to win the Labour leadership. Well, if that was him, then I won’t be voting for Labour, put it that way”

“I think he’s a very good politician but he’s unelectable as a Prime Minister”

On Yvette Cooper

“She sounds quite positive doesn’t she – for families and their everyday issues”

“Bedroom tax, working tax credits, mainly mum things as well”

“We had Margaret Thatcher obviously years ago, and then I’ve always thought about it being a man, I wanted a man, thinking they were stronger…  she was very strong and decisive as well”

“She was very clear – more so than the other guy [Burnham]”

“I think she’s trying to play down her economics background to sort of distance herself from her husband… I think she’s dumbing herself down”

On Liz Kendall

“None of it came from the heart”

“She just sounds like someone’s told her to say something, it’s not coming from the heart, she needs passion”

“Rather than saying what she’s going to do, she’s attacking”

“She reminded me of a headteacher when she was standing there, and she was quite boring. She just didn’t seem to have any sort of personality, and you can’t imagine her being a leader of a party”

“With Liz Kendall and Andy Burnham there’s a lot of rhetoric but there doesn’t seem to be a lot of direction behind what they’re saying. There seems to be a lot of words but no action.”

And, finally, a piece of advice for all four candidates, should they win the leadership election:

“Get down on your hands and knees and start praying”

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.