What is in Chancellor Rishi Sunak's new £15bn cost of living package?

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What is in Chancellor Rishi Sunak's new £15bn cost of living package
What is in Chancellor Rishi Sunak's new £15bn cost of living package

THE Chancellor has revealed a new package of measures to help with rising energy bills and the cost-of-living crisis.

Rishi Sunak said it was a £15bn support package with additional help targeted at the most vulnerable.

It comes after Ofgem said the price cap on gas and electric bills is likely to be increased to an average of £2800 - up by more than £800 a year.

READ MORE: Energy price rises around Europe and what governments are doing about it

The measures announced by the Chancellor on Thursday includes the £300 payment for all customers with energy bills being doubled to £4000 and will no longer need to be repaid.

There will be a one-off £650 cost-of-living payment to more than eight million low-income households on Universal Credit, Tax Credits, Pension Credit and legacy benefits.

A separate one-off payment of £300 will go to pensioner households and £150 to individuals receiving disability benefits.

READ MORE: Glasgow reacts as Ofgem warns of further energy price cap rise in October

Sunak said it will be partly paid for by a windfall tax on oil and gas firms’ profits expected to raise £5bn.

He had previously resisted calls from Labour to introduce a windfall tax.

Sunak said: “We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills.

“We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I’m targeting this significant support to millions of the most vulnerable people in our society. I said we would stand by people and that is what this support does today.

“It is also right that those companies making extraordinary profits on the back of record global oil and gas prices contribute towards this. That is why I’m introducing a temporary Energy Profits Levy to help pay for this unprecedented support in a way that promotes investment.”

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