A Hampshire pensioner has criticised the Chancellor's Autumn Budget, saying the £100 energy bill handout will do little to ease pressure on struggling households. Pete Grogan, 61, a former coach tour driver, said soaring living costs have left him reluctant to heat his home.
Mr Grogan said: "It's not going to help, is it? Divide it by the number of days, and it's nothing, isn't it? It's absolutely nothing. I daren't switch the heating on in this house. Even if I don't switch it on, the gas will still assume that, given the tariff we're on, that we owe them money for not burning it."
Food budget shock
He is equally alarmed by food prices, having calculated a monthly food budget of £470 for himself and his wife. "I'm looking forward to my 4p off my gherkins," he said, referencing Chancellor John Healey's plans to remove import tariffs on certain foods, another measure announced at the Autumn Budget.
"I'm my wife's carer, and I did a food budget for a month, and she doesn't eat a lot. And do you know what, when I looked at it, it was £470! It sounds ridiculous. What's that going to buy? Two loaves and some bacon or something? Everything seems to go up and up and up and up."
Scepticism over Budget measures
He is sceptical that the measures announced in the Budget to "give people breathing space" will leave families better off. "It was all little titbits that they'll snatch back later on," he said. "Don't worry about that because what we give with one hand, we'll make sure we take with the other hand."
He added: "For every bit of breathing space you get, for every bit of extra oxygen you can suck into your lungs, there's someone ready to punch you in the stomach and make you windless."
"The reality is, under anybody, for as long as I can remember now, we've not been better off. A lot of us cling to hope that never comes. And if you believe in hope, and if you believe in what's going on, then it makes your sun just a little bit brighter when it comes up. Until it rains."
Budget energy payment details
Chancellor John Healey delivered his first Autumn Budget to the House of Commons on Wednesday, which included the announcement of a new energy payment to help households with soaring costs this winter. The Household Energy Payment will provide £100 to households in Council Tax bands A to D in England, including most households exempt from council tax, with full eligibility criteria to be published in due course.
Up to 20 million households will be eligible, including an estimated 83% of fuel-stressed households in England, and 88% of households in the bottom three income deciles. The payments will be made from January 2027.
The announcement comes as the latest forecasts predict Ofgem's energy price cap will rise by between 16% and 27% in January, pushing bills up again for millions of households who aren't on fixed rate tariffs.
Richard Neudegg, director of regulation at Uswitch.com, said: "Longer-term measures intended to make energy cheaper are important, but most households are focused on getting through this winter. Breathing space is what the Budget offers households this winter, but it doesn't change what's coming in January. A 27% increase is forecast for homes on standard energy tariffs, landing in the month they use the most gas, which could add £464 to a typical home's annual bill."
He added: "The reality is this winter is going to be tough, with 1.7 million households planning not to turn their heating on at all." While Budget measures will help ease pressure for those who qualify, Mr Neudegg urged households to also consider actions that will give them certainty and control. He said: "Prepare yourself for what's ahead by locking in a fixed rate below what's expected in January, and be highly focused on how you use energy at home. The cheapest fixed deal today is £1,833 a year, around £110 above the current cap but around £354 below the average January forecast."
