GOVERNMENT plans to mandate oil and gas licensing in the North Sea may not bring down household energy bills, the Energy Secretary has admitted.

Labour called it a “stunning admission”, after Claire Coutinho said that a legislative plan – due to be announced in the King’s Speech on Tuesday – may not have any impact on those struggling with current energy costs.

The planned legislation will require the North Sea Transition Authority (NSTA) to issue invites every year under new plans to be set out in the King’s Speech on Tuesday in a bid to increase domestic production and wean the UK off foreign fuels.

But the move will infuriate green campaigners who argue the UK must reduce its reliance on polluting fossil fuels and focus more on renewables.

READ MORE: UK Government plans to ramp up oil and gas production

And the SNP have accused the UK Government of exploiting “Scotland's natural resources”.

The Government has claimed the move will provide job security for 200,000 workers, but the opposition claimed it would simply “hand billions of taxpayer subsidies” to oil and gas giants.

A previous decision to approve 100 new licences for oil and gas exploration in the North Sea sparked concern and criticism among climate campaigners, with the latest legislative move designed to create a dividing line between the Tories and Labour.

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Sir Keir Starmer’s party has committed to not allowing any more exploration licences in oil and gas, with plans instead to ramp up green energy plans.

“It wouldn’t necessarily bring energy bills down, that’s not what we’re saying,” Coutinho told BBC Breakfast.

“But it would, as I say, raise a significant amount of money that would help us, for example, fund public services, also fund transition into different forms of energy, for example, things like offshore wind and solar energy which more broadly and indirectly could help bring bills down.”

Labour’s Ed Miliband attacked the Government over her comments.

The National:

“It is a stunning admission from this Government that, during the worst energy bills crisis in generations, their flagship King’s Speech energy policy won’t even take a penny off energy bills," he said. 

“The Conservatives are so out of touch that they have given up trying to bring down energy bills for British families.

“Instead, they will hand billions of taxpayer subsidies to the oil and gas companies making record profits, undermine our energy security and contribute to climate disaster,” the shadow climate secretary said.

The UK Government has said that the move will improve energy security, a key focus for the Government since the Russian invasion of Ukraine.

But they will only take place if two tests are met. The first is that the UK must that year be projected to use more foreign oil and gas than resources from Britain.

Secondly, it must be shown that the emissions caused by using UK resources would be lower than if imported liquefied natural gas was used.

If both tests are met, the NSTA will be required to invite applications for new licences annually