Rishi Sunak's offer to help households with surging energy bills "won’t even touch the sides for most North East families", an MP has said.
The Chancellor was forced to step in on Thursday as Ofgem announced bills will soar by 54% for 22 million households from the beginning of April, adding £693 to the annual bills of a typical household.
Meanwhile, inflation is set to hit an eye-watering 7.25% in April, according to new Bank of England forecasts released on Thursday.
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The prediction would mean that disposable incomes fall by around 2%, according to Bank estimates, the worst impact since records began in 1990.
In response, Mr Sunak announced a £200 rebate on energy bills and revealed a £150 reduction in council tax for bands A, B, C and D properties.
Blaydon MP Liz Twist said the offer "won’t even touch the sides for most North East families".
Jarrow MP Kate Osborne added: "The government is failing to support and protect people who are on low incomes and struggling to make ends meet.
"They need to get their head out of the sand and get a hold of this escalating cost of living crisis."
It is feared communities in the North East would be hardest hit by the price rises as incomes are lower and housing stock generally less energy-efficient.
According to the Resolution Foundation think tank, 33% of households in the region will be in "fuel stress" , compared to 20% of those in London, come April.
Announcing the measures, Mr Sunak said: “The price cap has meant that the impact of soaring gas prices has so far fallen predominantly on energy companies.
“So much so that some suppliers who couldn’t afford to meet those extra costs have gone out of business as a result.
“It is not sustainable to keep holding the price of energy artificially low.
“For me to stand here and pretend we don’t have to adjust to paying higher prices would be wrong and dishonest.
“But what we can do is take the sting out of a significant price shock for millions of families by making sure that the increase in prices is smaller initially and spread over a longer period.”
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