Rishi Sunak’s measures only ‘temporary relief’ on cost of living crisis
Rishi Sunak’s response to the cost of living crisis has received a mixed reception, with charities and anti-poverty groups saying it provides temporary relief for millions of households but leaves those on the lowest incomes facing an uncertain future.
The package of measures will boost the incomes of 8 million low-income households with one-off increases to welfare payments in this financial year The chancellor rebuffed calls for permanent increases in benefits to cope with rising prices.
Average energy bills are expected to rise by £1,500 this year, with a £700 increase in April followed by a further £800 rise in October, under the regulated price-cap mechanism.
The chancellor said these households would be largely protected when they received payments worth up to £1,200 this year, made up of a £650 benefit boost paid directly into bank accounts in two stages – in July and autumn – a £400 rebate on energy bills in the autumn and the £150 cut to council tax bills that took effect in April.
The chancellor also announced top-ups for disabled individuals and pensioner households worth £150 and £300 respectively.
There was praise for the simplicity of the package, in contrast to the complex mix of subsidies announced in the chancellor’s spring statement.
In March, Sunak loaned households £200 cut to bills, to be paid back in future years. The scheme – dismissed by Labour as a ‘buy now pay later’ offer – has now been replaced with a grant, and increased to £400, making it easier to administer.
Sunak has opted to make payments direct to the bank accounts of those who receive benefits and pensions, instead of distributing the new money via the warm homes discount, which is managed by energy companies and has been criticised as
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