The Chancellor has today announced a package of support to help families and individuals with the rising cost of living. With the cost of energy going up, caused by a range of factors, including increased demand worldwide, the Government has stepped in to provide help to alleviate the current pressures on household bills.
So far, the cost has fallen on suppliers, so much so that many businesses have gone out of business due to consumer prices being kept artificially low. As the Chancellor said, it would be wrong and dishonest to pretend we don’t need to adjust to these price changes, but the Government can help and take the sting out of these sharp price rises.
Today the Government has announced four key interventions to help families with the mounting cost of household fuel bills.
This amounts to over £8.6 billion of extra Government support, or £350 per household and includes:
- Raising the energy price cap by £700 from April 2022;
- A £200 ‘smoothing’ rebate off your energy bills in October, to be paid back at £40 per year starting from April 2023;
- A non-repayable one-off £150 cash rebate for all homes in Council Tax bands A-D. This covers around 80% of all homes in England;
- £144 million discretionary funding for Local Authorities to support those not eligible for the Council Tax rebate, such as those families that are vulnerable but live in a property above Band D.
The Government is also looking to increase the Warm Homes Discount and extend eligibility by one-third to 3 million vulnerable households.
This package of measures ensures that the Government can support those who need it most, at a time when many across the country are facing increased pressure from the rising cost of energy.