The Government is set to reveal new plans for a 'multi-billion' support package that will help families with the rising costs of food, fuel and energy. The package is reportedly due to be unveiled as soon as tomorrow (Thursday, May 26) - the day after Sue Gray's report into 'Partygate' is published.
Chancellor Rishi Sunak is expected to be meeting the Prime Minister Boris Johnson today (May 25) to finalise their major “multibillion-pound” intervention, but no decisions have been made and the timing is yet to be confirmed, government sourced have told PA news agency. Speaking earlier today, Environment Secretary George Eustice said Mr Sunak has a “very difficult path” to tread.
The news comes after Ofgem boss Jonathan Brearley warned Brits will face another eyewatering energy bill rise from October this year. The chief executive said the regulator is expecting the energy price cap to increase by a further £830 to £2,800. He told MPs this was due to the market coping with “once-in-a-generation” price changes “not seen since the oil crisis of the 1970s”.
Read more: Sue Gray report LIVE: Findings of investigation into 'Partygate' allegations set to be published
According to reports, a new windfall tax on energy firms would be used to help those who are struggling – an option previously suggested by Labour and some senior Tories. Other measure that could be put in place include bumping up the warm homes discount and winter fuel allowance, the Times reports. There may also be a cut in council tax, while a VAT cut is said to be put up for discussion.
The date of the government's announcement is reportedly set to take place on Thursday, to coincide with the expected publication of Ms Gray's Partygate probe on Wednesday, as a way to take some of the heat off MPs. But a Downing Street spokesman told the BBC he would “refute any suggestion” an announcement would be timed to distract from the report.
Last week, Rishi Sunak gave a speech at the CBI annual dinner, where he said there is a “collective responsibility to help the most vulnerable in our society”. A Government spokesperson said: “We understand that people are struggling with rising prices, and while we can’t shield everyone from the global challenges we face, we’re supporting British families to navigate the months ahead with a £22 billion package of support.
“That includes saving the typical employee over £330 a year through a tax cut in July, allowing people on Universal Credit to keep more of the money they earn – benefiting over a million families by around £1,000 a year, and providing millions of households with up to £350 each to help with rising energy bills. The Chancellor has been clear that as the situation evolves, our response will evolve – and we stand ready to do more.”
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