Posted BY: Billy M | NwoReport
Rishi Sunak finally unveiled a fresh cost-of-living bailout today with every household expected to get hundreds of pounds off their sky-rocketing bills.
The Chancellor is announcing a new package of help for struggling families after watchdogs warned that the Ukraine crisis means energy costs are set to soar again this Autumn – by more than 40 per cent.
He confirmed that the government is performing an extraordinary U-turn on imposing a windfall tax on the surging profits of oil and gas firms, following weeks of wrangling in Cabinet. But he said the levy – which should raise £5billion – will be ‘temporary’ and there will be big tax breaks for companies that invest.
The £200 per household state loan for energy bills – which was due to be paid back over the next four years – is being converted to a permanent grant and doubled to £400 to take the edge off the misery of spiking inflation for 27million homes.
Mr Sunak said eight million households on benefits will get £650 lump sum payment, paid in two stages in July and autumn – which will costs the Treasury £5billion.
Pensions and disabled people will get £300 payments, and he confirmed that the triple lock will be applied to the state pension this year.
Mr Sunak set out the grim scenario with inflation at a 40-year high, and said the government cannot ‘solve every problem’ but will not allow people to be ‘set so far back they might never recover’.
He cautioned that inflation was becoming entrenched, saying: ‘Over the course of the year the situation has evolved and got more serious.’
‘I know the governor and his team will take decisive action to make sure inflation gets back on target,’ he said.
Mr Sunak was heckled with shouts of ‘what took you so long’ and ‘about time’ after he began his statement by noting that high inflation is causing ‘acute distress’ for people in the country, adding: ‘I know they are worried, I know people are struggling.’
He told the Commons: ‘I trust the British people and I know they understand no government can solve every problem, particularly the complex and global challenge of inflation.
‘But 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.’
Ministers are also eager to move on from the Partygate scandal, after Sue Gray’s report demanded Boris Johnson took responsibility for his staff boozing, vomiting and fighting in Downing Street when the rest of the country was under brutal lockdown restrictions.
The Treasury have been dismissing claims that the package will be worth £30billion, but it is expected to leave a significant dent in the public finances as the windfall tax is only likely to raise around £7billion.