The not a windfall tax will be given to all households who receive electricity
https://www.bbc.co.uk/news/business-61583651
Every household in the UK is to get an energy bill discount of £400 this October as part of a package of new measures to tackle soaring prices.
The poorest households will also get a payment of £650 to help with the cost of living, Chancellor Rishi Sunak said.
It follows warnings that millions could be left struggling if energy prices rise again in October as expected.
Mr Sunak said he had offered "significant support" for households who were facing "acute distress".
The package of new measures, worth £15bn in total, will also offer more targeted help to pensioners and the disabled.
The cost will be partly offset by 25% windfall tax on oil and gas firms' profits, which have soared in recent months.
It comes a day after Sue Gray's critical report into lockdown parties in Downing Street and follows intense pressure on the government to do more to help people with the cost of living crisis.
Paul Johnson, director of the Institute for Fiscal Studies think tank, called the measures "hugely redistributive", with the chancellor "taking from high earners and giving to the poor".
But he added that Mr Sunak was raising taxes to "historically high levels" for higher earners, although it was the "right thing" to do in the circumstances.
Announcing the support in the Commons, Mr Sunak 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."
Mr Sunak also announced:
Earlier this week, UK energy regulator Ofgem said the typical household energy bill was set to rise by £800 in October, bringing it to £2,800 a year. Bills had already risen by £700 on average in April.
Ofgem warned that 12 million households could be pushed into fuel poverty, where they are paying more than 10% of their household income on energy.
It comes as the prices of food, fuel and other goods also surge, pushing inflation - the rate at which prices rise - to a 40-year high.
https://www.bbc.co.uk/news/business-61583651
Every household in the UK is to get an energy bill discount of £400 this October as part of a package of new measures to tackle soaring prices.
The poorest households will also get a payment of £650 to help with the cost of living, Chancellor Rishi Sunak said.
It follows warnings that millions could be left struggling if energy prices rise again in October as expected.
Mr Sunak said he had offered "significant support" for households who were facing "acute distress".
The package of new measures, worth £15bn in total, will also offer more targeted help to pensioners and the disabled.
The cost will be partly offset by 25% windfall tax on oil and gas firms' profits, which have soared in recent months.
It comes a day after Sue Gray's critical report into lockdown parties in Downing Street and follows intense pressure on the government to do more to help people with the cost of living crisis.
Paul Johnson, director of the Institute for Fiscal Studies think tank, called the measures "hugely redistributive", with the chancellor "taking from high earners and giving to the poor".
But he added that Mr Sunak was raising taxes to "historically high levels" for higher earners, although it was the "right thing" to do in the circumstances.
Announcing the support in the Commons, Mr Sunak 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."
Mr Sunak also announced:
- Eight million households on means-tested benefits will get £650 paid directly into their bank accounts in two lump sums - one in July, the other this autumn
- There will be separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits - groups who are "most vulnerable to rising prices"
- The emergency Household Support Fund, which is allocated by councils in England, will be extended by £500m to £1.5bn. The devolved governments will receive equivalent funding.
Earlier this week, UK energy regulator Ofgem said the typical household energy bill was set to rise by £800 in October, bringing it to £2,800 a year. Bills had already risen by £700 on average in April.
Ofgem warned that 12 million households could be pushed into fuel poverty, where they are paying more than 10% of their household income on energy.
It comes as the prices of food, fuel and other goods also surge, pushing inflation - the rate at which prices rise - to a 40-year high.
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