All the winners and losers from Rishi Sunak’s cost of living rescue plan
RISHI Sunak today announced a £10billion rescue package to help households through the cost of living crisis.
Millions of people will receive free cash, a bigger Warm Home Allowance, and discounts on their energy bills.
Speaking in the House of Commons, the Chancellor Rishi Sunak said on average each UK household would get £550.
He said: "We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills."
It's worth noting that ALL households are getting some help, so there are no real losers from today's announcements.
The Chancellor announced:
- a windfall tax on gas and oil firms to partially fund the support
- £300 one-off payment to low-income pensioners
- £150 extra one-off disability payment
- £400 energy discount for EVERY household
- An extra £500million for the Household Support Fund
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But some households will get more than others, which could make many people feel a little left out.
We round up the winners and losers from Rishi's rescue plan:
Winners
All households
Every household in the UK is set to get a £400 discount on their energy bill this autumn.
Brits had been set to get £200 off their energy bills in autumn, but the proposal was slammed because consumers were expected to repay the money.
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Now, Rishi has DOUBLED his giveaway and promised households won't have to repay the money.
The money will start to be dished out in October, just as the energy price cap is set to rise again.
Pensioners
Millions of older people will get more money this winter, as Rishi is handing out a one-off £300 payment to pensioners.
The winter fuel discount will be paid out to older households to help them heat their home this winter.
The so-called "Pensioner Cost of Living Payment" will be paid in November or December, said Rishi.
That's on top of the existing Winter Fuel Payment worth between £100 and £300 that those over state pension age get already.
Low income families
Millions of people on Universal Credit and benefits will get a one-off £650 cash boost to help them cope with soaring bills.
More than 8 million households are set to receive the cash.
The payments will go to everyone on means-tested benefits, including Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), income support, Pension Credit, working tax credit and child tax credit.
The money will be delivered in two chunks, with the first half expected to arrive in July and the rest in the autumn.
Rishi assured households that the extra income would not affect their benefits.
We've rounded up the full list of benefits getting the £650 one-off cost of living payment.
Losers
People on benefits
Those on benefits will be pleased to hear they're due a £650 windfall from the Chancellor.
But some people might be disappointed he didn't take the opportunity to increase benefits.
Benefits went up by around 3% in April, but the Government has been criticised for not raising them more.
Inflation has already hit 9% meaning that the cost of living is going up at a much faster rate than benefits payments, which leaves families worse off in real terms as their money doesn't go as far.
Energy firms
Energy firms will be footing some of the bill for Rishi's bumper giveaway.
There has been mounting pressure on the Chancellor in recent weeks to implement a windfall tax on these companies, and today he finally bit the bullet.
A windfall tax is a one-off levy placed on companies by the government, aimed to get firms to pay more tax where they've benefited from something they weren't responsible for.
In this case, it would target energy suppliers, which have benefited from rising wholesale gas and oil prices because of a post-pandemic surge in demand and the Russian war in Ukraine.
It's pushed up energy bills for customers but boosted supplier profits.
Rishi said today that firms would be subject to a 25% windfall tax on their profits, which would help fund the support for households.
The "temporary, targeted energy profits level"; is expected to raise £5billion.
To soften the blow, however, he did offer a 90% tax relief for firms investing in UK oil and gas extraction.
People who get Warm Home Discount
There had been predictions that Rishi would increase the Warm Home Discount to £500 today - but this didn't come to pass.
The Warm Home Discount gives struggling households £150 towards their energy bills over the colder winter months.
It's given to those who get the guarantee credit element of pension credit, or if you're on a low income and meet your supplier's criteria.
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Those who receive the Warm House Discount won't be left out in the cold this winter though.
Many claimants will be eligible either for the £650 given to those on Universal Credit and Benefits, or the £300 payment to pensioners.
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