Finally, after months of campaigning and public outcry, we have a U-turn from the government.
We have confirmation of additional support from the government. Is it enough?
In my view, no, but it will go some way towards helping those struggling, particularly the most vulnerable in society.
I am pleased to see the targeted increased support for the 8million people on benefits.
These people will be getting a £650 payment, split between two payments in July and autumn.
It has been promised that no complex form completion is needed, it will go straight into people’s bank accounts.
Our eight million pensioners receiving the winter fuel payment are to receive an extra £300 payment.
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There are six million people on disability benefits, these people will receive a £150 one off payment, for which many of this group will be in addition to the £650 paid to those on main benefits.
It is also great news that the “loan-not-a-loan” payment planned for £200 has been turned into a grant and has been doubled to £400.
A welcome U-turn for something that many have declared an awful idea. This support is for every household in England, Wales and Scotland.
This will mean that the most vulnerable households will be getting the £650 additional payment plus the £400 grant plus the £150 support already distributed via council tax rebates in April. A total of £1,200 in support.
These payments are going to cost the government a huge £15bn and will be partly funded by an additional temporary tax on oil and gas companies.
Is this enough? In all honesty no. It will indeed make a difference, particularly to those most vulnerable.
But no, it’s not enough to cover all of the increased costs of living. This cost of living crisis isn’t limited to an increase in energy bills.
These bills alone are anticipated to increase by an average of £1,200 in total this year, given the recent announcement of an anticipated further increase to bills in October of an additional £800.
What about the price rises on food and fuel, both a significant part of the inflation, currently edging towards 10%?
This additional support from the government yes helps with the increases to energy bills but does little to help with other essentials of food and fuel.
Families are struggling with cost of their weekly shop, school uniforms for their children, travel costs to get to work and for children to get to school.
This cost of living crisis continues whilst all essential costs and bills continue to rise.
There was an opportunity to cut the 5% VAT on energy bills.
This could have been done to make an even further savings to energy bills, particularly as a big chunk of our energy bills are daily fixed standing charges that we still pay even if we do everything we can to reduce energy usage.
The giving of a grant is gratefully received, albeit I can’t help but feel cynical about the timing of the announcement, so close to the Partygate report.
