RISHI Sunak last night finally vowed to scrap VAT on energy bills to help Brits afford to pay their energy bills this winter.
In a screeching u-turn, the ex-Chancellor and underdog to be the next PM promised he will save households £160 by axing the tax for a year.
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Despite arguing against a VAT cut for months, saying it wouldn’t help those who really needed it, he promised to bring it in from October, when bills are forecast to rise yet again.
He also promised a benefits shake-up to get more Brits back into work.
But in an extraordinary swipe, Work and Pensions Chief Therese Coffey accused him of stealing her policy – and blocking the cash for it.
Earlier this year Mr Sunak was forced to set out two cost of living packages to help households with soaring bills.
He dished out a £400 discount on energy bills, a £650 one-off lump sum to poorer families, £150 for disability benefit claimants, and £300 for pensioners.
And today he promises to go even further, setting out his winter plan as the energy price cap is set to rise to more than £3,000.
The PM had warmed to the idea of slashing VAT on energy bills – but later rowed back saying he’d rather target the help to poorer households.
Rishi has repeatedly promised the nation he will cut taxes – but only when the finances are looking better and the country can afford it.
The wannabe-PM also promised to:
– Bring forward a benefits shake-up by doubling the number of hours people on welfare have to work a week to avoid looking for a full time job – from 9 to 18
– Introduce new incentives to encourage older workers to return to the labour market
– Boost supply chains in Denmark and the Netherlands to reduce Britain’s reliance on French ports and ease disruption.
Mr Sunak said last night: “Tackling inflation and getting people the support they need to help with the cost of living is critical.
“This temporary and targeted tax cut will get people the support they need whilst also – critically – bearing down on price pressures.”
Last night Team Truss accused Mr Sunak of a “screeching u-turn” after repeatedly refusing to scrap VAT.
Allies of the Foreign Secretary pointed out he had repeatedly said there was no guarantee it would be passed on, or would get to those who needed it the most.
Ms Coffey, who is backing Ms Truss, said: “DWP will shortly change the rules to ensure people keep looking for extra work until they have at least 12 hours a week with an ambition to increase that in the future.
“DWP had hoped to get this underway earlier this year but unfortunately was blocked by the former Chancellor.
“I share the ambition to go further but these new proposals require extra £210m funding.”
