If Ofgem raises the cap, in April 2022 energy bills could continue to rise even higher.
Currently, Ofgem states the cost of VAT on an average household energy bill as £61, whereas the average household energy bill is £1,277.
Analysis by the Labour Party said its package to help households could save “most households around £200 or more”.
The Labour Party’s analysis was based on an estimate that the average household bill will rise to £1,865, according to the BBC.
Labour’s statement said: “Crucially, the Party said it would also target extra support to squeezed middle, pensioners and the lowest earners, receiving up to £600 off bills and preventing all of the increase in energy bills currently expected.”