Households struggling with the cost of living crisis will see an "enormous easing" in their financial pressures next year - as increases in benefits in pensions are expected to outrank inflation, Rishi Sunak has said. The Chancellor unveiled a support package worth at least £15 billion on Thursday (May 26) in a bid to address the impact of soaring prices.
Measures included giving every household £400 off their energy bills - replacing a £200 discount that was effectively a loan needing to be paid back. There will also be a one-off £650 payment to more than eight million low-income households on benefits; a £300 payment to pensioner households alongside the winter fuel payment; and £150 to individuals receiving disability benefits.
Speaking to Martin Lewis, founder of the Money Saving Expert website, Mr Sunak said: "None of us know what energy prices are going to be next year. But what I can tell you now and what people should be reassured by is that the way our system works, benefits and pensions next year are likely – subject to a review that has to happen legally – to go up by quite a significant amount because the inflation rate that decides that is set in September.
