‘Standing by the British people’ Rishi Sunak unveils £1,200 boost for 8m households

Support … Rishi Sunak (Image: GETTY)

More than eight million households will receive £ 1,200 in hand-outs as part of the giveaway. And in an unexpected upswing, the chancellor also promised help to every household in the country with a discount of 400 pounds on the energy bill this winter. It was also confirmed that the pension’s triple lock system will be restored.

To fund the measures, Sunak announced a temporary tax raid of £ 5 billion on the profits of oil and gas companies.

He will also increase the national debt by about 10 billion pounds.

Labor immediately accused Mr Sunak of pinching their idea of ​​an unexpected tax.

Some Tory MPs questioned the wisdom of the government distributing cash grants to each household after raising National Insurance last month.

But the chancellor insisted that radical measures were necessary to prevent millions of people from being exposed to serious difficulties due to the rise in fuel prices.

Mr Sunak said: “We said we would stand by the British people. It is a promise we made and we are keeping it today.

“We know that people are facing challenges with the cost of living and that is why today I am stepping in with additional support to help with rising energy bills.

“We have a collective responsibility to help those who pay the highest price for the high inflation we face. That is why I direct this significant support to millions of the most vulnerable people in our society.

“I said we would stand behind people and that is what this support does today.”

Sunak announced a £ 5 billion temporary tax raid on oil and gas companies' profits

Sunak announced a £ 5 billion temporary tax raid on oil and gas companies’ profits (Image: PA images)

Mr Sunak completed his emergency package after energy watchdog Ofgem signaled that the price cap on domestic fuels will soar to around £ 2,800 in the autumn.

His measures included doubling the planned rebate for households to lower their energy bill this winter to £ 400. He also suspended his previous proposal to get his money back in recent years, making the move a grant rather than a loan.

Treasury cash will go to energy companies to reduce bills by £ 400 spread over six months from October.

The allowance will be universal and paid to each address with an electricity meter by energy companies, which means that owners of more than one home will receive £ 400 for each property.

Sunak also announced extra targeted support for low-income households, pensioners and the disabled.

Around 8.3 million households receiving universal credit and other income-related benefits will receive a payment of £ 650 in two installments in July and autumn.

This means that most of these families may have to pay a total of £ 1,200 in the coming months, including the previously announced £ 150 tax rebate for bond AD properties.

All retired households will receive an extra £ 300 paid through the annual winter fuel payment mechanism.

About six million people who receive means-tested disability benefits will receive a cost of living allowance of £ 150.

People who fall into more than one category will qualify for multiple payments under the system.

In a statement from Commons, Sunak said: “This government will never stop trying to help people, to fix problems where we can, to do what is right – as we did throughout the pandemic.

“We must ensure that for those whose struggle is too fierce and for whom the risks are too great, they receive support.”

“This government will not sit idly by while there is a risk that some in our country may sit so far back that they may never recover. This is simply unacceptable. I will never allow that.
to happen.

“And I want to reassure everyone – we will make it happen.”

Mr Sunak, who was in the picture when he visited a B&Q store in Watford, also confirmed that the pension’s triple locking mechanism will be restored, with next year’s pension increase based on the rate of inflation in September.

In the Commons, the Chancellor met with scornful cheers from Labor MPs when he announced his temporary 25 percent tax raid on oil and gas companies’ profits.

Mr Sunak said his energy gains tax, which will last for three years or until energy prices fall to more normal levels, will be tailored to encourage investment in UK energy supply.

Companies will be able to apply for a 90 percent discount on the fee for any profits that are plowed back into British oil and gas production.

Sunak said: “It is also right that the companies that make extraordinary profits due to record high global oil and gas prices contribute to this.

“That’s why I’re introducing a temporary energy tax to help pay for this unparalleled support in a way that promotes investment.”

Shadow Chancellor Rachel Reeves claimed the government had been drawn “saving and screaming” to support Labour’s plan.

She said: “After today’s announcement, leave no doubt as to who will win the battle of ideas in Britain. It is the Labor Party.

“Today, it feels like the Chancellor has finally realized the problems facing the country. We first called for an unexpected tax on oil and gas producers almost five months ago to help struggling families and retirees.”

Several government ministers are perceived to be annoyed by the Chancellor’s decision to further increase the tax burden by introducing the energy tax.

A source close to a senior minister said: “There is a lot of unhappiness among colleagues that we are raising taxes again.

This has been forced through without discussion in the government. It hits the business community and disrupts our election manifesto promises. ”

Paul Johnson, of the Institute for Fiscal Studies, said: “Mr Sunak is engaged in a serious redistribution from rich to poor.”

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