Rishi’s £10bn to help struggling families with cost of living

RISHI Sunak will today unveil a £10billion support package to help struggling families through the cost of living crisis.

With energy prices set to soar again this autumn, the Chancellor will intervene to ease the pressure on household finances.

He will prioritise the most vulnerable in society with a package of measures funded in part through a windfall tax on oil and gas giants.

A major increase in the Warm Home Discount Scheme – worth £150 to three million low-income households – is expected which could see the payment rise to £500. A council tax rebate will also be included but proposals to slash the 5 per cent VAT on energy bills have been ditched.

Officials last night remained tight-lipped on the exact details, but other measures thought to be under consideration include bringing forward a planned increase in benefits.

Mr Sunak finalised the support package yesterday after the measures were fasttracked amid concerns the Government risked looking out of touch.

Ministers have been under pressure over recent months to intervene as families face a perfect storm of rising taxes, bills and energy costs.

Last night, a Tory party source said: ‘On a windfall tax, the arguments have been tested rigorously within the Treasury and within government. We need to help families who would consider themselves comfortably off but are feeling the pinch, but the vast majority of help will be directed at those who need it most.’

Boris Johnson yesterday vowed to do ‘everything we can to help people’ through the crisis, but warned the pressures on household finances would last for ‘a while to come’.

The Prime Minister told a press conference yesterday: ‘We will continue to respond just as we responded throughout the pandemic.

‘It won’t be easy, we won’t be able to fix everything, but what I would also say is that we will get through it and we will get through it well.

‘There’s no question we have pressure now on household finances… and the Government is going to do everything we can to help people.’

Whitehall sources pointed to a speech Mr Sunak delivered last week saying the Government has ‘a collective responsibility to help the most vulnerable in our society’.

The need for extra help was illustrated by Ofgem chief executive Jonathan Brearley’s indication the energy price cap is to increase by a further £830 to £2,800 in October.

Consumer groups said the prediction would strike ‘terror’ into the hearts of millions of householders.

A Treasury spokesman said: ‘We understand people are struggling with rising prices, which is why we’ve provided £22billion of support to date.’

‘Help the most vulnerable’