Chancellor Rishi Sunak has announced a major package of financial support to help households cope with the rising cost of living, as the government seeks to move on from the Partygate scandal. The measures include one-off payments targeted at the most vulnerable, funded partly by a temporary windfall tax on oil and gas giants.
Eight million of the lowest income families will receive a one-off payment of £650. Pensioners will get £300, and those with disabilities will receive an additional £150. All households will also benefit from a £400 discount on energy bills, previously announced. The payments are intended to offset soaring energy costs, with regulator Ofgem warning that typical bills could rise by £800 to £2,800 per year in October.
The windfall tax, called the Energy Profits Levy, will apply to oil and gas companies and includes investment incentives. Sunak defended the levy as a 'very specific' tax, despite his previous reluctance to impose such a measure. The move was welcomed by opposition parties, who had long called for it.
Reaction from the public and campaigners has been mixed. At a job club in Cheshire, Lisa Bradley broke down in tears, calling the support 'a massive relief'. However, debt charity StepChange warned that assistance must not be diluted for those in greatest need, while the Child Poverty Action Group said the chancellor was 'kidding himself' if he thought the measures would prevent long-term financial setbacks.
Consumer experts broadly praised the package. Martin Lewis of MoneySavingExpert described it as 'more generous than expected', and Citizens Advice called it a 'life raft' for millions. The measures apply across the UK and are designed to provide immediate relief while the government seeks to stabilise the economy.
