Chancellor Rishi Sunak has announced a package of measures for low-income households to help with the cost of living crisis.
The measures including a new, one-off £650 payment to more than eight million low-income households on Universal Credit, Tax Credits, Pension Credit and legacy benefits, with separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits.
For households on means tested benefits, DWP will make the payment in two lump sums directly into claimants bank accounts – the first from July, the second in the autumn. Payments from HMRC for those on tax credits only will follow shortly afterwards.
The £150 disability cost of living payment will be paid by September.
Sunak also announced that the energy bills discount due to come in from October is being doubled from £200 to £400, while the requirement to pay it back will be scrapped.
There was also a £500m increase for the Household Support Fund, extending it from October until March 2023. The above is to be paid for via a new Energy Profits Levy for oil and gas companies.
It comes after increasing pressure on the government to act, especially after Ofgem’s announcement this week that the energy price cap will be increasing to levels that will see average bills hit £2,800 – up from £1,200 last October.
Sunak 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.
“We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I’m targeting this significant support to millions of the most vulnerable people in our society. I said we would stand by people and that is what this support does today.
“It is also right that those companies making extraordinary profits on the back of record global oil and gas prices contribute towards this. That is why I’m introducing a temporary Energy Profits Levy to help pay for this unprecedented support in a way that promotes investment.”
UKGBC’s Chief Executive Officer, Julie Hirigoyen comments: “The payments announced today will help households in fuel poverty, which at this moment of crisis is welcome. But it will do nothing to stop the annual loss of £500 from heat leaking out of every window, wall and roof of their poorly insulated homes.
“The longer the Government puts off the real solution, implementing a large-scale home upgrade drive to make homes more energy efficient, the longer desperate households will suffer in the cost of living crisis.
“As things stand there is no end in sight to rising energy bills, and no prospect of meeting the UK’s climate commitments.”