Rishi Sunak announces energy grant
Following Ofgem’s confirmation the energy price cap will rise to £1,971, an increase of £693 for average household, Rishi Sunak unveiled the government’s plan to ease the rising costs:
- Of the £693, 80% comes from wholesale energy prices
- Over 85% of homes in UK are heated with gas
- 40% of electricity comes from gas
- Increase in prices will be smaller initially and spread over a longer period
- A total of 28 million households this year are expected to be helped by the scheme
- Help with the cost of living will reach around £9 billion
- Domestic electricity customers will receive an upfront discount on bills worth £200 from October with the government covering the cost
- That amount will be spread in £40 instalments over the next 5 years
- £150 council tax rebate in April that will not be repayed for households in bands A-D – 80% of all homes in England will benefit
- Provide local authorities with discretionary £150 million fund to help lower income households who live in higher council tax properties and households in bands A-D who are exempt from council tax
- As the council tax system is England only, around £565 million will be provided to the devolved administrations
- Expand eligibility for warm homes discount by 1/3 so 1million households can benefit
- Provide £3 billion to help 1.5 million lower income homes become energy efficient saving £290 a year
- Tax cuts for those on universal credit allowing 2 million households to keep an average of £1,000 a year
The full transcript of the official announcement can be accessed here.
Black Thursday for Brits: Energy bills rocket by £693 and Bank of England hikes rates to 0.5% to battle rampant inflation – as Rishi FINALLY unveils £9bn package of council tax rebates and loans for bills… but admits it will only offset HALF the pain
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