By Rishi Sunak announces plans to help households with rising costs
Follwing Ofgem’s announcement that the energy price cap will rise by nearly £700, Councillor Rishi Sunak is laying out government plans to help struggling households.
Sunak told the Commons: “We will spread out the price shock of rising energy bills over time.”
Consumers will receive a £200 discount on their electricity bills from October and this will automatically be repaid in equal £40 instalments over the next five years.
Sunak says he will give people in council tax bands A to D a £150 council tax rebate in April.
This will mean 80% of council tax payers get the saving.
There will also be £150m for local authorities in England to help lower income households.
The chancellor says that the energy bill help only applies to England, Scotland and Wales, because Northern Ireland has its own system.
The council tax measures also only applies in England, so £565m will be given to the devolved administrations in the rest of the UK to offer similar levels of help.
Sunak shut down calls for VAT on energy to be cut in order to reduce bills, he said that would disproportionately help wealthier households.
He said there would be no guarantee energy suppliers would pass on the savings and he suggested it would become “a permanent government subsidy”.
The chancellor said his plan will provide “more generous support, faster, to those who need it”.
