Penny Mordaunt says there are many things that can be done to deal with the backlog.

Mordaunt says her experience being the director of a patient organisation puts her in a good position to bring down the number of people on waiting lists.

Mordaunt adds that innovation will be important for fixing the backlog.

Kemi Badenoch says the NHS backlog is "terrifying". She says she chipped her tooth seven months ago and still hasn't been able to get it fixed.

She says it's the same with GP appointments and people not getting other care they need in hospital.

Covid did so much damage, she says.

She says the government has to address the fact the NHS has had more money put in than ever before but is under more pressure too.

The backlog must be dealt with by finding more efficient ways to manage things, she adds.

And there's more from the former chancellor on the NHS here. He says he was attacked for making sure the NHS was properly funded in the pandemic.

Credit: Britain’s Next PM: The C4 Debate/ITN Productions

Sunak says he believes in the NHS and that he took a difficult decision to come up with a new way to fund the service.

He says people should trust that he'll do what is needed to solve the backlog as he's already made tough choices at great political cost to himself personally.

Next the candidates are quizzed on how to deal with the current NHS backlog and funding the service in general.

Badenoch says candidates need to be clear that any support is taxpayers' money and says they should not be seen as uncaring by looking after the country's finances.

Guru-Murthy asks the audience again if they are satisfied with the assistance being given by the government, to which only a handful of people put their hands up in agreement.

Krishnan Guru-Murthy presses the candidates on how they'll support people amid rising energy bills and the cost of living crisis.

Sunak says he acknowledges that the average bill will go up by around £1,200.

But, he adds, the government will ensure vulnerable people, those "who most need it" will receive £1,200 in support.

Earlier in the debate, Penny Mordaunt was asked if she is in favour of self-ID, where a trans person could legally change their gender without, for example, a medical diagnosis.

Mordaunt says she held a consultation looking at the Gender Recognition Act and insists she has never been in favour of self identification.

She says she would have made the system better, but she would not have divorced it from healthcare.

She says she’s a biological woman “in every cell of my body” and legally a woman, adding: “Some people who are born male go through a process and are issued at the end of that process with a legal document in their new gender, but that does not mean they are identical to me.”

Nick Eardley
Political correspondent

There has been no shortage of genuine debate - and some significant blue on blue attacks.

Rishi Sunak has accused Liz Truss of believing in economic fairy tales. He accused Penny Mordaunt of wanting to make tax cuts after she denied it.

Truss hit out at Sunak's decision to increase National Insurance.

Tom Tugendhat even revealed a private conversation and says Sunak only agreed to put taxes up because the PM wanted him to.

There are some genuine, ideological differences on show.

And there is no lack of attacks on the positions of others when it comes to the economy.

Mordaunt says things are going to be difficult in autumn.

She says energy companies are not passing savings on to consumers, and there's also an issue where suppliers are hanging on to credit.

She says the standing charge on energy also needs to be looked at.

Sunak acknowledges the cost of energy is increasingly something people are no longer able to pay for, no matter how hard they work or how much spending they cut.

He says that is why he launched the support package while chancellor for people to help towards rocketing energy costs.

Asked if more help is needed now bills are going up further, Sunak says the long-term solution is improving insulation in people's homes and getting people the support to pay for that.

Asked about how he will deal with the rising cost of energy bills during winter, Tom Tugendhat says prices have to be brought down now.

He says nuclear energy will be the way forward, but investing so that people can better insulate their homes will be important as well.

Truss also says she would remove the green energy levy.

She says that as foreign secretary she's currently dealing with the fallout from Russia's invasion of Ukraine, and says it has made the world realise how dependent we've become on Russia for energy.

She says the UK needs to build more nuclear power stations and small modular nuclear reactors - that will bring jobs too, she adds.

Answering the question first, Badenoch says energy shortages worry her, after growing up in Nigeria where blackouts were common.

She says the government should remove green levies, acknowledging that while climate change is important, the growing cost of energy is more pressing for people around the country.

Government can sometimes do more harm when it is trying to do good, she adds.

Next, the candidates are quizzed on soaring energy bills and what they will do to address the problem.

Image source, Britain's Next PM: The C4 Debate/ITN Productions

Earlier, Tom Tugendhat was asked how he will restore trust in politics following the controversies of Boris Johnson's government.

Credit: Britain’s Next PM: The C4 Debate/ITN Productions

Asked if her comment that tax policy should be "broad and focused" is contradictory, Kemi Badenoch says it means making sure the right people get the support they need to help with the cost of living.

She says one such idea would be her proposal to cut VAT on fuel.

Tom Tugendhat says he is the only candidate who didn't vote for tax hikes on National Insurance.

He says when he talks to businesses around the UK, they care about investment rather than corporation taxes - which some candidates have pledged - and other technicalities.

Mordaunt says she hasn't done what other candidates in the contest have done, which is cut tax immediately.

Modaunt says she has a plan for limited, timely, targeted support, but she's not going to set levels of corporation tax during a debate. She'd halve VAT on fuel at the pump, for example.

Sunak says her sums don't add up, but Mordaunt fires back that Sunak hasn't realised that people need help now.

Truss joins in and says it's wrong to put up taxes in a cost of living crisis.

She says she wants to see low-tax zones introduced around the country, which she argues will help people build businesses and invest in the country.

Nick Eardley
Political correspondent

We're getting some proper clashes on economic policy now.

Rishi Sunak is trying to sell himself as an economic realist - the man who will take tough decisions.

Liz Truss, meanwhile, says she wants tax cuts from day one - and has criticised the increase in National Insurance contributions.

Sunak isn't happy - and says Truss needs to be honest. He suggests Truss's plans are a fairy tale.