Energy bills set to rise by £800 as Sunak set to announce billions of pounds to help hard-up families
RISHI Sunak is to announce billions of pounds to help hard-up families — as it emerged energy bills will rise by another £800 this year.
The Chancellor and the PM are on the verge of signing off on the support package after energy regulator Ofgem warned of a “once in a generation” bills crisis.
No10 and No11 want to announce the details tomorrow, with sources saying that — after weeks of dithering — the plan will centre around a windfall tax on gas and electricity firms.
The proceeds are likely to be split between a relief for billpayers through council tax cuts and changes to Universal Credit, as well as investment in domestic nuclear and wind energy production.
It came as Ofgem chief Jonathan Brearly yesterday warned the energy price cap would likely rocket to £2,800 in October — up from £1,972 now. It was £1,277 before the last rise in April.
He told MPs: “The price changes are a once in a generation event not seen since the 1970s.”
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Urging Mr Sunak to step in, he added: “This is only something the Government can address.”
Last night, the influential Resolution Foundation think-tank said one in ten families will be plunged into fuel poverty by the spike.
Tory MP Steve Baker urged Mr Sunak to “cut taxes in any way he can”.
Fellow Tory Jake Berry added: “We need to act to help hard-pressed families already feeling the pinch.”
And Labour’s Shadow Chancellor Rachel Reeves said: “The Government have got to get a grip on this crisis and to protect families and our economy.”