Rishi Sunak announces poorest Brits to get £350 to help them through energy bills crisis but critics say it’s NOT enough

RISHI Sunak today announced the poorest Brits will get an extra £350 to help them through the energy bills crisis.

In a major speech to the Commons the Chancellor unveiled a new package of support for families struggling to make ends meet.

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But critics immediately said the measures won’t be enough for millions of households facing rocketing costs and taxes.

The Chancellor announced every home in Britain will get a one-off discount of £200 on this winter’s energy bills.

But it will be funded using taxpayer-backed loans, meaning providers will have to claw back the money in future via higher prices over the next five years.

Rishi also unveiled an emergency Council Tax cut for households in bands A-D, which will be worth £150 to the average family from April.

But that won’t even cover the cost of the upcoming National Insurance hike which will wallop workers for an extra £180 on average.

The Chancellor also confirmed the number of people eligible from the Warm Homes Discount will be increased by a third ahead of next winter.

It means a million more Brits will get an extra £150 support from October.

But even after all the extra support many families are expected to find themselves at least £1,000 worse off this year.

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There will also be a £150m cash pot for local councils to help low earning families who live in higher Council Tax band properties.

The Chancellor told the Commons: “Right now I know the number one issue on people’s minds is the rising cost of living.

“Just as the Government stood behind the British people through the pandemic so we will help people deal with one of the biggest costs they now face – energy.

“Without Government action this would be incredibly tough for millions of hard working families.

“So the Government is going to step in to directly help people manage those extra costs.”

Brits are braced for a quadruple whammy of rocketing prices on what is being dubbed a new “Black Thursday” for the UK economy.

Families will be clobbered with…

• Average gas and electric bills hitting £2,000 a year as the Government’s price cap is raised.
• Mortgage payments going up as interest rates set to double from 0.25 per cent to 0.5 per cent – the second increase in two months.
• Shoppers hit by the highest price rises in nearly a decade
• Petrol prices to rocket to record levels.

The chancellor said the new package would help 28 million households across the country and cost around £9 billion.

He said that without it families would have been facing paying an extra £693 for their energy on average.

But Rishi resisted calls from many Tory MPs to go further by axing green levies and VAT, which together make up almost a fifth of the average annual bill.

He said getting rid of VAT would “disproportionately benefit wealthier households” and turn into a permanent subsidy costing £2.5bn a year.

Speaking in the Commons he also swatted aside Labour calls for a windfall tax on energy firms saying it would “deter investment” in Britain.

Foreign office minister James Cleverly also defended the decision not to go further by axing VAT.

But he also admitted the Government won’t be able to help everyone who is struggling with spiralling energy bills.

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He said ministers want to “target” support at those who need it most rather than providing a windfall for the whole country.

And he admitted that despite the new package of support ministers won’t be able to help everyone battling to make ends meet this winter.

He said: “For some people they are always still going to struggle, we are very, very conscious of that.

“We are very, very conscious of how much this will hurt some people. We absolutely recognise the pressure this puts on some families.

“But we really hope the combination of general financial support and the very targeted measures specifically about energy costs will make sure the majority of people who are concerned about fuel bills get support.”

Comparison site Uswitch branded today’s measures “sticking plasters on a long term problem” and said “it’s consumers who will ultimately be paying the price”.

Bill Bullen, boss of energy firm Utilita, added: “The Government is introducing ill-targeted financial measures that won’t go far enough.”

TORIES SPLIT

Tory MPs speaking in the chamber were split over the Chancellor’s announcement.

Ex Brexit Secretary David Davis said: “It is obvious we have to help families with the cost-of-living crisis, but the way we are doing it is strategically wrong.

“Charging people £100s extra on everything from fuel to income, and handing it back in drips and drabs will never work long-term.”

Fellow backbencher Peter Bone confronted the Chancellor and suggested the Government’s high tax, high spend polices are “socialist”.

He said: “Conservatives believe in holding taxes down and putting more money in people’s pockets so they can decide how to spend it.

“Socialists believe in raising taxes and then choosing to give it back in the form of discounts and rebates to selected people the Government thinks need it.”

Another Tory MP, Stephen McPartland, said the new package “lacks ambition” and is a “huge missed opportunity to support families courageously”.

But senior Conservative backbencher Robert Halfon praised the Chancellor’s response.

He told the Commons: “This is a cost of living package for white van men and women across the country.”

And fellow Tory Mark Harper, a frequent critic of No 10 over Covid rules, also backed the measures.

He said: “The Chancellor is responding to a global energy crisis with honesty and a package of targeted support after listening to backbench MPs’ views.”

Conservative MP for Wolverhampton, Jane Stevenson added: “This is quite simply a superb plan.”

BLACK THURSDAY

Labour’s Chris Bryant described today’s announcement as “pretty puny stuff” that’s “not going to touch the sides” for most households.

Millions of Brits are facing a perfect storm of spiralling bills, rising inflation, and tax hikes.

Consumer expert Martyn James said: “It’s going to be Black Thursday.

“Millions of households across the UK are waking up to the reality of huge energy price rise hits, while inflation inches ever up and all the main bills we pay look set to rise.

“Whatever you do, don’t panic – there is help out there. But the Government need to know that it’s nowhere near enough for millions of hard-up people.”

Households face a planned rise on National Insurance, council tax hikes and higher energy bills from April 1.

Soaring inflation is adding £180 a year to grocery bills and soaring crude oil prices are pushing up prices at the pumps.

Tory MP Tom Tugendhat, chair of the Commons foreign affairs committee, said the energy crisis showed the PM should scrap the planned NI rise.

He said: “April showers won’t be cheap. The sudden surge in the cost of heating will hit families across the country just as the new NI tax kicks in.

“People need control of their lives by having control of their wallets – that’s why lower taxes matter for every home.”

Energy watchdog Ofgem was forced to bring forward its planned price cap rise on gas and electric bills to today, as the government scrambles to help Brits with the cost of living crisis.

Suppliers will be allowed to hike the basic tariff for 22 million households, meaning families are set for huge increases in bills.

Experts last night predicted capped energy tariffs will shoot up by around 50 per cent to £1,915 for the typical customer as a result of today’s announcement.

Another rise is expected in autumn when the price cap is likely to go up yet again.

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This post first appeared on thesun.co.uk