Next up is Lib Dem MP Wendy Chamberlain who says she has a vulnerable constituent who was wrongly billed £4,000 by two energy companies that no longer exist.

She says energy is one of the most basic services, but there is no charter in place.

She asks if the prime minister agrees that such a charter is needed.

Sunak responds saying that he will ensure the relevant minister will write to the constituent to try and resolve the issue.

Labour's Kim Johnson says there are now 4.2 million children in poverty in the UK, 70% of which are in working households.

She asks Sunak if he will scrap the "cruel and ineffectual" two-child policy, to help lift children out of poverty. She also asks if he will meet with anti-poverty organisations.

Sunak argues that there are 400,000 fewer children in absolute poverty today than there were in 2010, and that "work is the best route out" of poverty, saying that employment is at "record levels".

He also argues that the two-child policy "ensure fairness".

The Alba Party's Neale Hanvey attacks Starmer's vision for Scotland accusing him of wanting to continue the "plundering of Scotland's vast energy wealth" and "continuing the economic vandalism of Brexit".

He asks Sunak "who is the greatest threat to Scottish democracy - the Tory to my right or the Tory to my left".

Sunak says he agrees that the leader of the opposition is not the right person to be leading the country.

The SNP's Stephen Flynn continues by saying the prime minister needs to grow up, which is met from jeers in the house.

He says there is an "elephant in the chamber" which is Brexit.

Flynn says the Tories do not want to accept it and Labour does not want to talk about it.

Households in Scotland have been shafted by Brexit, says Flynn, asking the prime minister to apologise for the cycle of misery that Brexit has caused.

Sunak then responds by saying they are delivering for the people of Scotland by supporting bills and making pensions rise.

He says the Tories are making sure 200,000 jobs can be secured by supporting north Scotland oil and gas. He says this is something the SNP opposes.

The SNP's Westminster leader Stephen Flynn is up next.

He also discusses the incident in Nottingham, as well as those still reeling from the Grenfell tragedy.

Flynn says during his leadership bid the PM warned of the perils of rising mortgage rates, saying it would hinder their chances of winning the next election. Flynn asks: "Does he still agree with his own analysis?"

Sunak says is priority is to tackle inflation, and that to do that you need to control borrowing.

He then goes onto mock the SNP's plans to send flowers to former leader Nicola Sturgeon, asking Flynn if he signed the card.

Sunak says this week Labour has voted against plans to tackle illegal migration and disruptive protests.

This government, he adds, has delivered record employment and the fastest wage growth in years.

Only the Conservatives, he concludes, can deliver for the people of Britain.

In his final question, Starmer accuses the PM of spending more time "haggling with predecessors" than the economy or asylum system.

He says Sunak has lost control.

"Why not put it to the test and see if he can find anyone willing to vote for him. He should call a general election now," says Starmer.

Image source, UK Parliament/PA

Sunak responds by saying that if you are looking for faulty economic policies, you should look at Labour's energy policy.

He criticises the policy, saying despots like Putin would be the only ones to welcome the policy.

Instead it will lead to British jobs for Russian workers, says the prime minister.

Starmer says there's only one party that broke the economy "and they're sitting right there".

He then goes onto discuss the honours list of Johnson's replacement Liz Truss, who was in office for just a few weeks.

Starmer says Truss's honours list plans to reward those who made her premiership "such a rip-roaring success," he says sarcastically.

He asks Sunak if he will block Truss's honours list, "or will he buckle to her as well?"

Sunak says his priorities are to reduce inflation, borrowing and debt.

He speaks of "Labour confusion" over spending on green projects.

It's always the same with Labour, says the PM, "uncontrolled borrowing and more chaos".

Image source, UK Parliament/PA

Starmer says Conservatives are more focused on infighting and adds that "the country is paying the price for the endless cycle of chaos".

He says the Tory crash means "millions of mortgage payers will pay more next year".

"Those responsible should hang their heads in shame," he says.

Sunak echoes his previous sentiments, saying it is right to use the honours system - adding that almost 2,000 people are honoured a year.

He asks Starmer why he put forward former MP Tom Watson for a peerage.

Sunak says Watson spread "vicious conspiracy theories".

Starmer says honours "should be for public service", not for Tory cronies.

He accuses Sunak of being "too weak" to block Boris Johnson's honours list, and says those who spend their time helping cover up Johnson's "lawbreaking" are now rewarded by "becoming lawmakers".

He asks if the PM's message to the public is: "If you don't like it, tough."

Image source, UK Parliament/PA

Sunak says he has followed due process and convention, as have PMs of both parties.

He says Tory PMs might not have wanted to put Tom Watson or Shami Chakrabarti in the House of Lords, but did not interfere in political honours.

Starmer continues by saying the PM did sign off on the honours list meaning that "those who threw a Downing Street party the night before the Queen sat alone at her husband's funeral will now receive awards".

If he is so tough why didn't he block it, he asks.

Sunak responds by saying he followed the process "to the letter".

Describing awarding peerages as a long-standing convention, he says it has been followed on both sides of the house.

Image source, UK Parliament/PA

Labour leader Keir Starmer begins by remembering the victims of the attack in Nottingham, as well as all those who died in the Grenfell fire tower. He says the justice they're fighting for is long overdue.

He says people across the country are worrying about the cost of living, but says the Tory Party has spent the week arguing about "which of them gets a peerage".

Chris Mason
Political editor

Here we go.

Lots of politics around involving a certain Boris Johnson.

But significant economic news too — the prospect of higher interest rates.

The PM claims the UK is "on track" to halve inflation in line with his promise.

It’s a reminder that for all the noise in recent days, the political battle over economic credibility is so, so important.

Rishi Sunak begins by thanking emergency services for their response to the incidents in Nottingham and says his thoughts are with those affected.

He also pays tribute to the victims of the Grenfell tragedy, six years on.

PMQs is starting and Prime Minister Rishi Sunak is at the despatch box.

We’re poised to bring you all the exchanges from the Commons, so stick with us as we bring you the latest.