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Daily Mirror
Daily Mirror
Politics
Ben Glaze

Rishi Sunak confronted over energy bill help for second home owners - including him

Rishi Sunak was forced to defend handing second home owners hundreds of pounds to help with energy bills today.

The Chancellor claimed there was no better way of boosting support for hard-up households in the cost of living crisis - despite criticism that wealthy property barons as well as struggling families will benefit from discounts on fuel costs.

Under the Government’s £15billion package unveiled last month, millions of households will receive a £400 discount, with £650 payments for eight million of the worst-off families.

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But the scheme triggered anger because people with multiple homes will get help for each house they own.

Labour MP Siobhain McDonagh told the Chancellor, who with his wife Akshata Murty appeared on The Sunday Times Rich List last month with a joint £730m fortune, that 772,000 second home owners would receive £800 discounts - costing taxpayers £620m.

Mr Sunak and his wife Akshata Murthy appeared on The Sunday Times Rich List this year (PA)

Some 61,000 people owning three homes will get a £1,200 discount - costing the public purse £73m, she said.

Ms McDonagh feared cash was going to people who “some of us would think probably don’t need that help”.

She asked: “At a time when the total tax burden has risen to the highest level since the 1940s, is it really good use of taxpayer money for somebody on The Sunday Times Rich List, or indeed for any MP or government minister, to be receiving second home support when others are choosing between heating and eating?”

Labour backbencher Siobhain McDonagh sits on the Commons Treasury Select Committee (PA)

Grilled by the Commons Treasury Select Committee, the Chancellor claimed: "Having looked at the various delivery options that were in front of us, this is, we think, the most effective way to get support to a very large number of people in a way that would be timely and help them where they need to."

He added: “There will be some people who don’t need that help - that is unfortunately the consequence of having to do policy in practical terms.”

Mr Sunak has pledged to donate the discount for his various homes to charity.

He insisted the scheme, funded by £10bn of borrowing and a £5bn windfall tax on North Sea oil and gas giants, would have only a “minimal” impact on inflation, currently running at 9%.

He also dampened hopes of further help as the living standards crisis deepens.

"It’s not possible for the Government to fully insulate people from increases in the cost of living and inflation,” said the Cabinet Minister.

"The structure of what we have put in place is by definition temporary and it is a careful and well-constructed package which will minimise the issue of inflation."

The price cap is expected to rise to about £2,800 in the autumn (PA)

Mr Sunak was also accused of rushing out his May 26 announcement to “divert attention from the Prime Minister's lawbreaking” following the publication of the Partygate report into lockdown-busting, boozy bashes in Downing Street, which emerged 24 hours earlier.

Labour’s Rushanara Ali told him: “You are falling into the trap of trying to save the Prime Minister by making an announcement the day after the Sue Gray report to take that story off the headlines.”

The Chancellor denied the claim, saying it had become clear families would need fresh help with bills when the energy price cap is raised later this year.

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