New measures for soaring energy bill prices

Smart meter

Chancellor Rishi Sunak has announced new measures worth £15bn to tackle soaring energy bill prices following warnings that millions could be left struggling if energy prices rise again as expected. 

 

Every household in the UK is to get an energy bill discount of £400 in October as part of new measures to tackle soaring prices.

 

The Chancellor also announced the following measures:

  • Eight million households on means-tested benefits will get £650 paid directly into their bank accounts in two lump sums – one in July and the other in the Autumn
  • Pensioner households who receive the winter fuel payment will receive separate one-off payments of £300 in November/December
  • Those receiving disability benefits will receive a separate one-off payment of £150
  • The emergency household support fund, will be extended by £500m to £1.5bn. This money is given to local authorities to support vulnerable families.

 

Under these new measures, the initial plan to give everyone in England, Scotland and Wales £200 off energy bills which would be repaid over 5 years has been scrapped. Instead, the new measures offer twice as much and will not need to be repaid.

 

A windfall tax has been introduced on oil and gas firm’s profits for the next 12 months. This is at 25% and is expected to raise about £5bn this year. This is only expected to be in place until oil and gas prices go back down to a more normal level. The costs of the new measures will be partly offset by the 25% windfall on oil and gas firm's profits.