Chancellor in £15bn move

THE Chancellor has revealed a new package of measures to help with rising energy bills and the cost-of-living crisis.

Rishi Sunak said it was a £15 billion support package with additional help targeted at the most vulnerable.

Millions of households will receive a £400 discount off their energy bills and a £5bn tax will be levied on oil and gas giants.

The £6bn announcement of £400 in universal support from October replaces the initial plan for a £200 loan, with Mr Sunak scrapping the requirement to repay the money.

Other measures announced the Chancellor included:

A one-off £650 payment to more than eight million low-income households on benefits, paid in two instalments in July and the autumn at a cost of £5.4bn.

A £300 payment to pensioner households in November/December alongside the winter fuel payment, costing £2.5bn.

•£150 to individuals receiving disability benefits, worth a total of £0.9bn, paid by September.

Consumer Prices Index inflation rose to 9% in April and consumers are bracing themselves for the energy price cap to rise by more than £800 to £2800 in October as the squeeze on living standards continues.

Mr Sunak had previously resisted calls from Labour to introduce a windfall tax. But the Chancellor said his plan for a 25% energy profits levy would be coupled with a new incentive, almost doubling the tax relief available on investment.

He said: “We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills.

“We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I’m targeting this significant support to millions of the most vulnerable people in our society.

“I said we would stand by people and that is what this support does today.

“It is also right that those companies making extraordinary profits on the back of record global oil and gas prices contribute towards this.

“That is why I’m introducing a temporary energy profits Levy to help pay for this unprecedented support in a way that promotes investment.”

I said we would stand by people and that is what this support does today