Every household to get energy bill discounts of £400 this autumn

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Chippy_Tea

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It took them a while but they got there in the end, Labour were loving it when he announced it earlier.


Every household in the UK is to get an energy bill discount of £400 this October as part of a package of new measures to tackle soaring prices.
The poorest households will also get a payment of £650 to help with the cost of living, Chancellor Rishi Sunak said.
It follows warnings that millions could be left struggling if energy prices rise again in October as expected.
Mr Sunak said he had offered "significant support" for households who were facing "acute distress".
The package of new measures, worth £15bn in total, will also offer more targeted help to pensioners and the disabled.
The cost will be partly offset by 25% windfall tax on oil and gas firms' profits, which have soared in recent months.

Announcing the support in the Commons, Mr 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."
Mr Sunak also announced:
  • Eight million households on means-tested benefits will get £650 paid directly into their bank accounts in two lump sums - one in July, the other this autumn
  • There will be separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits - groups who are "most vulnerable to rising prices"
  • The emergency Household Support Fund, which is allocated by councils in England, will be extended by £500m to £1.5bn. The Devolved governments will receive equivalent funding.
Earlier this week, UK energy regulator Ofgem said the typical household energy bill was set to rise by £800 in October, bringing it to £2,800 a year. Bills had already risen by £700 on average in April.
Ofgem warned that 12 million households could be pushed into fuel poverty, where they are paying more than 10% of their household income on energy.
It comes as the prices of food, fuel and other goods also surge, pushing inflation - the rate at which prices rise - to a 40-year high.

'Hit hard'
Mr Sunak blamed the war in Ukraine, recent lockdowns in China and the post-pandemic recovery for the surging prices. But he said the situation had "evolved and become more serious" pushing the government to act.
Under the new measures, the government will scrap a plan to give everyone in England, Scotland and Wales £200 off bills from October which would be repaid over five years.
Instead, that sum will be doubled and will not need to be paid back.
The measures add to around £17bn of support already given by the government. This included one-off £150 council tax rebates for most homes in England and Wales and matched funding for the other devolved nations.


The government has until now rejected the idea of a windfall tax on energy firms' profits, saying it could deter investment in the UK.
But Mr Sunak said the oil and gas sector was "making extraordinary profits" and that he was "sympathetic to the argument to tax those profits fairly".
He said the tax would raise about £5bn this year and be scrapped when oil and gas prices - which have surged recently - return to more normal levels.
However, in seeking a "sensible middle ground" energy suppliers will be able to apply for tax relief of 90p for every pound they invest in UK oil and gas projects.
Mr Sunak said he also believed there was a case for taxing electricity suppliers more, announcing a consultation on the idea.
Rachel Reeves, Labour's shadow chancellor, said: "After five months of being dragged kicking and screaming, the chancellor has finally come to his senses, U-turned, and adopted Labour's plan for a windfall tax on oil and gas producer profits to lower bills."


https://www.bbc.co.uk/news/business-61583651
 
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A load off godswallop more like to save their own bacon, i will take whats on offer and hopefully vote them out next election
Doesn’t matter who’s in the hot seat, they’re all corrupt and won’t do anything that’ll hurt their backhanders….

why a countries govt will willingly allow companies peddling necessities to blatantly fleece people is beyond me.
 
@Chippy_Tea announced:

“The cost will be partly offset by 25% windfall tax on oil and gas firms' profits, which have soared in recent months.”

The Chancellor virtually tied himself in knots to explain that it WAS NOT a “windfall tax”!

He was so vehement in his defence that the phrase “If it quacks like a duck, walks like a duck …… “ sprang to mind! :D
:hat:

PS
According to Sunak it was a “temporary targeted profits levy” to tax extraordinary profits of energy companies, while still incentivising investment.

AKA a windfall tax!
:D :D :D
 
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@Chippy_Tea announced:

“The cost will be partly offset by 25% windfall tax on oil and gas firms' profits, which have soared in recent months.”

The Chancellor virtually tied himself in knots to explain that it WAS NOT a “windfall tax”!

He was so vehement in his defence that the phrase “If it quacks like a duck, walks like a duck …… “ sprang to mind! :D
:hat:

PS
According to Sunak it was a “temporary targeted profits levy” to tax extraordinary profits of energy companies, while still incentivising investment.

AKA a windfall tax!
:D :D :D

Targeted, in that they targeted the day after the Sue Gray report was released to announce it.
 
Yeah 400 quid cut from power bills which are going up 800 quid, do the maths still 400 short of over inflated prices. Trying to buy votes or what.
 
Call me pessimistic but all this talk of windfall tax and financial assistance will just make the energy companies ramp up their prices even more so that they can net the financial assistance to help pay for the extra tax.
Whichever way you look at it, it's the cannon fodder tax payer who will pay in the end.
 
Just had my electric bill for the last 3 months. Not too scary though we have been very careful with such things as the immersion heater. Of course it's only one month at the new rates.
Unlike most our bills are highest in the summer as we heat the house with a woodburner which has a back boiler - so more or less free hot water. Next quarter will be the worst...
 
Call me pessimistic but all this talk of windfall tax and financial assistance will just make the energy companies ramp up their prices even more so that they can net the financial assistance to help pay for the extra tax.
Whichever way you look at it, it's the cannon fodder tax payer who will pay in the end.

The money was unexpected profit the energy companies said it will not effect future investment.
 
Is it wise to just dump £650 into someone's bank account rather than discounting their bills? Some will be straight off to the pub and McDonald's...
 
Totally agree Clint, Kids will go without as always with some parents who prioritise other issues first
 
Is it wise to just dump £650 into someone's bank account rather than discounting their bills? Some will be straight off to the pub and McDonald's...
I agree Clint, IIRC they are paying £40 off everyone's bills a month why cant they do the same with this £650.
 

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