UK Chancellor Rishi Sunak has given a statement in which he laid out the various support packages which will be made available to combat the cost of living crisis.
He reassured people that the UK Government could get the country through this and described the situation as “simply unacceptable.”
In total, the support measures amount to £15bn.
What will be available to me?
Various packages will be available to different groups of people including pensioners, disabled people and those on the lowest incomes.
Lowest Incomes:
The Chancellor said that eight million households on the lowest incomes would be given a one-off payment of £650.
Pensioners:
Those on pensions would receive £300 in addition to the winter fuel payments they already receive.
The Chancellor said that the elderly were being “disproportionately effected” because they were often unable to work and spent more time indoors meaning they had to spend more on heating their home.
Disabled People:
A one-off payment of £150 will be made available to those suffering with disabilities.
Similarly, the Chancellor said disabled people were suffering because they often required extra equipment to aid them throughout their day which used up more energy.
What about the £400 bill?
Originally, the Government announced a £200 energy bill rebate.
However, this has since been doubled to £400 and will no longer need to be repaid. The Chancellor confirmed that “this support is unambiguously a grant.”
This will be available to every UK household.
What about the windfall tax?
As expected, Chancellor Rishi Sunak performed a U-turn regarding the windfall tax on fossil fuel companies.
Whilst he did not use the specific term, he said: “I am sympathetic to the argument to tax those profits fairly but as ever there is a sensible middle ground.”
He went onto say there would be a “temporary, targeted energy profits levy” at a rate of 25% to still allow for investment.
For every pound a company invests, the Chancellor said they would get 90% back in tax relief – ie the more a company invests, the less tax they will pay.
The levy will be phased out once profits return to normal levels as they are currently being impacted due to the war in Ukraine.
