New Cost of Living Support Package Announced

41 people online!
June 25th 2022
Tax Week 12
try our free mobile apps!

New Cost of Living Support Package Announced

Millions of low income households to receive cash credit of £650 and more help for pensioners and disabled people.

Chancellor Sunak today announced emergency measures as the cost of living crisis escalates through 9 percent inflation and rising energy price caps - rising again by £800 in October to £2,800 per year - pushing 12 million households into fuel poverty.

A temporary windfall tax on oil and gas companies who are recording bumper profits right now will raise £5 billion spread over a number of years.

The 25 percent windfall tax will make a little dent in the £37 billion total support package the Chancellor announced today and earlier this year, with the new announcements costed at £5 billion.

The 25 percent 'Energy Profits Levy' prevents energy firms from using losses in previous years to offset profits.

Eight million low-income households are to recieve a one-off £650 cash payment to be credited to bank accounts. The two instalment credit will be paid in July and another this Autumn.

For the six million receiving non-means tested disability benefits there is also a £150 disability cost of living credit.

Pensioners could receive up to an extra £800 by this winter as a bonus £150 winter fuel payment and a one-off disability cost of living payment of £150 is planned.

The previously announced energy bill rebate of £200 (which would then need to be repaid in monthly instalments) has been scrapped, to be replaced by a non-repayable £400 energy bill credit per household. What amounts to a grant will now be paid by the energy companies directly to customers.

Jump to topic:
Browse Archives:

Help - find relevant tax tools and calculators - go back to top

Answer a few questions below and we will list relevant tax calculators and tools that can help you organise, budget and ultimately save you money!
are you an employee?