Today the Chancellor announced £15bn of support including help to 8 million of the most vulnerable households.
These measures will help support the most vulnerable one third of households with £1200 each. This includes:
Raising extra revenues through a new Energy Profits Levy: this will be charged on profits of oil and gas companies at a rate of 25%. It will be temporary and as the oil and gas price returns to more historically normal levels it will be phased out. The Levy’s new Investment Allowance will double the overall investment relief for oil and gas companies, so the more a company invests, the less tax they will pay.
Providing £9bn targeted support to the most vulnerable households: households on means-tested benefits will receive a £650 cost of living payment, directly sent as a one-off cash payment, the first in July and the second in the autumn. There will also be a £300 pensioner cost of living payment for each pensioner household in receipt of Winter Fuel Payment.
£6bn to help with energy bills: a £400 cash grant for every household.
The measures announced today are in addition to the existing £22bn package of support to help address the cost of living. The Government’s priority remains to help with the cost of living, and to build a stronger economy for all.