- As the UK economy continues its recovery from the pandemic, the Conservative Government have stepped in to confront the global inflationary pressures caused by the world economy coming swiftly back to life.
- With Ofgem announcing a £700 rise to the Energy Price Cap, the Conservative government have announced a three-part plan to help with household fuel bills immediately – worth £350 per household, in a total package of support worth £9.1 billion.
- This Government support will ensure the adjustment to higher prices is smaller and spread over a longer period – supporting households along the way.
Mario has welcomed the plans from the Conservative Government which will mean over 200,000 households across Surrey are set to be supported with a £150 non-repayable cash rebate.
This is just part of the support put in place, with plans worth up to £350 per household across the country in total, as part of the £9.1 billion package of government support to help with rising energy bills.
As the UK economy continues its recovery from the pandemic, the Conservative government are confronting the global inflationary pressures caused by the world economy coming swiftly back to life.
Although, there are limited levers the government has to deal with these global problems – the Conservative Government have already taken steps to support families. These measures include reducing the Universal Credit taper rate, increasing the National Living Wage, freezing fuel duty for the twelfth year in a row, and launching a £500 million Household Support Fund to help the lowest-income households with their bills.
Following Ofgem’s confirmation that the energy price cap will rise by £700 from April, the Conservative Government have announced this three-part plan to help with household fuel bills immediately and protect people against half of this increase.
- A £200 ‘smoothing’ rebate on energy bills for all households, to be paid back over the next five years at £40 per year – starting from April 2023
- A non-repayable £150 cash rebate for homes in Council Tax bands A-D – equivalent to 80 per cent of all households, helping both lower and middle-income families
- £144 million of discretionary funding for local authorities to support households not eligible for the council tax rebate
Measures also include continuing with plans to increase the Warm Homes Discount and extend eligibility by one-third to 3 million vulnerable households, worth £150.
Commenting, Mario said:
“Global pressures have led to households across the country feeling a squeeze on their household costs, so it is right that the Government have come forward with this support.
“These measures will help over 214,000 households across Surrey alone with council tax bills, as well as a £200 rebate on energy bills for all households, on top of pre-existing measures to support families, such as the Warm Home Discount scheme.
“This will deliver support to more people and a faster pace – giving families the support they need now.”
Chancellor of the Exchequer, Rishi Sunak, said:
“Right now, I know the number one issue on people’s minds is the rising cost of living.
“That’s why the Government is stepping in with direct support that will help around 28 million households with their rising energy costs over the next year.
“We stood behind British people and businesses throughout the pandemic and it’s right we continue to do that as our economy recovers in the months ahead.”
The conservative government are taking action to help families with the cost of living by:
- Introducing a £200 ‘smoothing’ rebate on energy bills for all households, offering support to all households across the country. This rebate is to be paid back over the next five years at £40 per year – starting from April 2023, helping families to adjust to energy prices and spread payments over a longer period (HM Treasury, News Story, 3 February 2022, link).
- Delivering a non-repayable £150 cash rebate for homes in Council Tax bands A-D – equivalent to 80 per cent of all households, helping both lower and middle-income families. This money will target 80 per cent of households, expecting the vast majority of people who pay their council bills via Direct Debit, to see the benefits by April (HM Treasury, News Story, 3 February 2022, link).
- Injecting £144 million of discretionary funding for local authorities to support households not eligible for the council tax rebate, ensuring we protect all families against rising prices. This funding will help local authorities to support households not eligible for the cash rebate – including properties in bands A-D that are exempt from council tax, and households on lower incomes in higher bands (HM Treasury, News Story, 3 February 2022, link).
- We are also continuing with plans to increase the Warm Homes Discount, worth £150, and extending eligibility by one-third to 3 million vulnerable households. Currently, our Warm Homes Discount provides a £140 rebate on energy bills each for over 2.2 million low-income households, we are continuing with plans to increase the rebate to £150 and expand eligibility by one-third to 3 million vulnerable households (HM Treasury, News Story, 3 February 2022, link).
- Launching our Plan for Jobs, helping people earn more and gain the skills our economy needs, through our £2 billion Kickstart Scheme; £2.9 billion Restart Scheme; our Lifetime Skills Guarantee we are helping people into work and our new Way to Work campaign to fill the 1.2 million vacancies in our economy (HM Treasury, Plan for Jobs: Progress Update, 13 September 2021, link; Hansard, 21 December 2021, HCWQ 92949, link; DWP, Press Release, 27 January 2022, link).
- Cutting tax for low-income families by reducing the Universal Credit taper rate. To make sure work pays, and to help the lowest-income families in the country. We are cutting the taper rate by 8 pence, taking it down from the current 63p to 55p. We also increased the Work Allowance by £500; taken together, this is a tax cut for 2 million low-income families worth £2.2 billion this year, or an extra £1,000 in their pocket. For example, a single mother of two working full-time on the National Living Wage will be better off by around £1,200 a year – while a working couple with two children, both paid the National Living Wage, one working full-time and one part-time, will be better off by £1,800 every year (DWP, Press Release, 24 November 2021, link).