Chancellor Rishi Sunak announced a multibillion-pound cost-of-living support package on Thursday. Unveiling the policy in the House of Commons, Mr Sunak acknowledged that people were struggling.
The measures will be partly funded by a temporary levy on oil and gas companies making windfall profits due to soaring fuel and energy prices, which is expected to bring in £5billion over the year next.
But what does this mean for the British people, who gets what and when? Here are the main questions answered.
Read more:How the £400 energy bill discount works for gas and electricity prepaid customers
So, tell us about this exceptional tax
Sunak doesn’t call it that, he prefers a “targeted temporary profit levy” to tax the windfall profits of energy companies, while encouraging investment.
How much will windfall tax yield and what will the overall cost be?
Initially the Chancellor announced that the total expenditure was £15bn – including £5bn from energy companies – but it later emerged that the Treasury had not included the £200 for each household he had announced in February what was going to be a loan, but Mr Sunak turned it into a grant and doubled it to £400 on Thursday.
The total figure is?
It is expected to be £21bn.
So who gets what?
There will be a one-time payment of £650 to eight million lowest income households
There will be a £300 payment to eight million pensioners who receive winter fuel payments
There will be an additional £150 payment to six million people on disability benefits
The energy bill rebate scheme for households with a home electricity meter will double to £400
For the latter, when the initial energy bill reimbursement program was announced in February, people had to pay it back. Is this still the case?
No, Mr. Sunak said he won’t have to be reimbursed
How will the £400 rebate be paid?
A All UK households will receive a grant that will cut their energy bills by £400 from October. The discount will be made automatically by your energy supplier. It is not necessary to apply.
How will the £650 be paid?
It will be an automatic payment to the bank accounts of those concerned and will be made in two installments – the first in July and the second in the fall. Payments for those benefiting only from tax credits will follow shortly thereafter.
When will those who qualify get the £150?
People on disability benefits will receive £150 in September, which may be on top of the £650 payment, as in many cases their energy consumption is higher.
Anyone receiving the following benefits will be entitled to an additional £150: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefit, Armed Forces Independence Payment, Constant Attendance Allowance and war pension mobility supplement.
Is there any assistance to local authorities?
A further £500m is earmarked for the household support fund provided by local councils, bringing it to a total of £1.5bn
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