Ten ways ministers could ease pain

BORIS Johnson has said he and Rishi Sunak are ‘looking at what we can do’ to cushion the blow of predicted increases of 50 per cent in power bills. Here are ten ways they could help:

SCRAP VAT ON BILLS

Labour wants the 5 per cent VAT on domestic energy bills axed, saving families around £90 next year on average. Ministers are cool on the approach, but it has not been ruled out.

REMOVE GREEN LEVY

Tory backbenchers have demanded the temporary removal of a green levy that accounts for 13 per cent of the cost of energy bills but ministers say it is a key part of Government policy.

WINDFALL TAX ON OIL GIANTS

Profits of North Sea oil and gas firms are taxed at 30 per cent corporation tax plus a 10 per cent supplementary charge. Labour wants this put up to 50 per cent to raise at least £1.2billion.

EXTEND WARM HOMES DISCOUNT

2.2million households get the £140 Warm Homes Discount on energy bills. Ministers are understood to be looking at some form of extension. Labour wants to extend eligibility so 9.3million households receive it.

RAISE OTHER WINTER BENEFITS

Some pensioners get £25 if temperatures drop to or below freezing for seven days. This could be increased, along with the winter fuel payment.

PUT UP BENEFITS IN GENERAL

Campaigners want Universal Credit increased to help low-income households. A temporary uplift of £20 a week ended in autumn.

EASE COST OF SUPPLIER FAILURE

Energy firms are calling for a loan to spread costs associated with company failures – estimated at £94 per customer – over a longer billing period.

A LOAN SCHEME

The Treasury is considering industry proposals for a much larger £20billion loan scheme to help defer all elements of the price rises.

DELAY TAX RISES

Jacob Rees-Mogg is said to have called for a 1.25 per cent National Insurance hike to be delayed.

TARGETED SUBSIDIES

Labour has urged ministers to set up a £600million fund to support energy-intensive firms that are particularly hit by increased bills.