There have been updates to the Government support coming out to help us all cope with the cost of living crisis. Chancellor of the Exchequer Rishi Sunak has outlined his plans earlier this afternoon and in this post, we’re going to briefly look at how this will impact you. Your finances are likely tighter than a tight thing right now, so a glimmer of hope and help could be exactly what you are looking for.
‘Significant’ Support
In response to the price cap rise for October 2022, something had to happen. Rishi spent a fair few minutes talking before actually revealing any stats and figures as we wanted. He mentioned ‘significant’ support a number of times before the big reveal. Basically, it seems like he has taken most of everyone else’s ideas, including Labours and spun them as his own. Sure, there are slight adjustments, however the U-turns he’s made wouldn’t be out of place in a car chase.
Energy Profits Levy
There will be an energy profits levy on energy companies. Basically, a windfall tax which will be in place as long as needed. It will be able to be tapered out when required. This should raise £5billion to help fund this new cost of living crisis support.
Loan Not Loan Gone
There were huge amounts of pushback against the idea of the £200 loan-not-loan we were all due to get in Autumn. This has been scrapped. Instead, every household in the UK will get £400 to go towards energy bills. This should help as winter approaches. It’s also worth noting that most people should by now have received their council tax rebate of £150.
Other Payments
On top of that, there are other new cost of living crisis support.
8 million of the lowest income households will receive £650.
8 million pensioners in receipt of the warm home discount will also get £300.
6 million people who are disabled will get £150 for their energy bills. Personally, I think this is not enough. Those disabled people who have machines in order to live should have the energy for those machines paid for completely.
These payments can also be numerous. So those on pensioners in receipt of the £300 will also get the £400 that every household is getting. You see how it works.
Ease The Burden
Rishi said that the Government cannot fix everything however these new cost of living crisis support payments should help ease the burden. These are the initial announcements and we’re sure to hear how they’ll be implemented over the coming weeks.
I fear though, that without an actual solution on how much the price cap can rise, this is a plaster on a slit wrist. We cannot cope with doubled annual energy bills. The price cap should have a cap that it can rise by. 5% every 6 month period (less when it moves to every 3 months) would be ok I suppose, protecting consumers whilst also allowing energy companies to increase prices. If we don’t take control of that, we’ll simply find ourselves back in this situation again.
What do you think about the new cost of living crisis support? Let me know over on Twitter.
