New Cost of Living Support Package Announced

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June 25th 2022
Tax Week 12
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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.

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