Chancellor announces new cost of living support worth total of £15bn.

Trevor Bristow
May 26, 2022
Business News, Uncategorised

The Chancellor, Rishi Sunak has just announced a series of additional measures to provide cost of living support. He says that the latest measures will provide support worth £15bn, bringing the total cost of living support offered by the government this year to £37bn.
It is anticipated that three-quarters of the total support will go to vulnerable households.

Tax on profits of oil and gas companies confirmed
Rishi Sunak announces the government will introduce a temporary levy on the profits of oil and gas companies at a rate of 25%.
He says the sector is making “extraordinary profits” due to surging global commodity prices driven in part by the war in Ukraine.
The chancellor says these profits must be taxed fairly and incentivise investment.

The levy will be phased out when prices return to more normal levels and the more a company invest the less tax they will pay.

Households to get £400 grant for energy bills as loan scheme scrapped
The chancellor has also made the £200 loan for energy bills a grant that no longer needs to be paid back and increased its sum to £400.

Lowest income households to get one-off payment of £650
Chancellor Rishi Sunak says around eight million of the lowest income households will be sent a one-off payment of £650.

One-off disability cost of living payment of £150
Rishi Sunak also announces a one-off disability cost of living payment of £150.
“Many disabled people will also receive the payment of £650 I’ve already announced, taking their total cost-of-living payments to £800,” the chancellor says.

Eight million pensioners to get extra £300
The chancellor announces from the autumn eight million pensioner households will receive an extra winter fuel payment of £300.