CHANCELLOR Rishi Sunak is set to make an announcement today to help struggling Brits with the cost of living crisis.
Energy bills will soar to £2,800 a year on average from October, the boss of Ofgem warned this week.
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Soaring grocery prices are also fuelling record-high inflation, piling more misery on to millions of households.
The government will make an announcement today unveiling a package of support worth hundreds of pounds to households.
The plan will centre around a windfall tax on gas and electricity firms.
The proceeds are likely to be split between providing relief for billpayers through council tax cuts and changes to Universal Credit, as well as investment in domestic nuclear and wind energy production.
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The Chancellor could slash energy bills by £400 to offer relief to hard-up households.
Here’s what could be announced to today in Rishi’s cost of living rescue plans.
Universal Credit increase
Mr Sunak is keen on targeted support for those on the lowest incomes.
This could include increasing Universal Credit payments in line with current inflation figure.
Benefit payments usually increase each April – but The Daily Telegraph suggests this rise could be brought forward to help struggling Brits.
Another council tax rebate
The government could be considering another Council Tax rebate, according to the Daily Mail.
Earlier this year, Rishi Sunak announced a one-off £150 council tax rebate to households in A to D category homes.
Local councils have started dishing out the cash – but they have until October to pay to eligible households.
Warm home discount increase
An increase in the warm home discount scheme is an option being considered among the package of measures.
It could go up from £150 to £500 for three million low-income households.
The warm home discount scheme is available to low-income households, usually on certain benefits, to help with energy bills. This year the payment is £140 – but it was already due to rise to £150 next year.
Some households are paid the cash automatically, while others have to apply to their energy firm if they meet certain criteria.
Are there any other options?
Energy bills could be slashed by £400, according to reports.
The government already announced a “rebate and clawback scheme”, which would have given people a £200 discount on their bills from October – but would later be repaid.
Mr Sunak is expected to increase the amount and convert this loan to a grant meaning the cash would not have to be repaid.
There have been rumours of an “offer to help the squeezed middle” according to the Daily Mail.
The government may also look at a separate winter fuel payment, according to the FT.
What help is already available?
The Government announced a raft of measures to help households battling the soaring cost of living earlier this year.
Millions of people are receiving a £150 council tax rebate, and a £200 refund on energy bills is slated for October (although this will have to be paid back over the next five years).
Energy suppliers have hardship funds, which offer grants to those in energy debt. Yesterday, Bulb announced it had re-opened its scheme and households can get up to £140.
The Household Support Fund has also been doubled to £1billion, and this gives money to local councils to dish out to struggling residents in their area.
You can find out what help is available where you live by contacting your local authority.
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