Today in Parliament, the Chancellor of the Exchequer announced a comprehensive economic package to support households in Telford with the cost of living. The measures included will protect those receiving benefits or facing low pay and tight household budgets from rising energy costs through a series of announcements aimed at getting help quickly to those who need it.
The measures announced today include:
A targeted and temporary Energy Profits Levy will be introduced from today on the profits of oil and gas companies
The new Levy will be charged on profits of oil and gas companies at a rate of 25%, on top of the existing 40% headline rate of corporation tax. The Levy will raise around £5 billion over the next twelve months.
£650 cost of living grant for 8 million households on means-tested benefits
These will paid by the DWP in two separate instalments, with the first due from July and the second in the Autumn.
Payments from HMRC for those on Tax Credits will follow one month later. All those who live in the UK and are in receipt of Universal Credit, Jobseekers Allowance, Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit and Pension Credit are eligible.
£300 cost of living payment for every pensioner household in receipt of Winter Fuel Payment
Around 8 million pensioner households already receive Winter Fuel Payments, which we have increased to £300. We will send all existing recipients an additional one-off £300 cash payment, due to be paid out automatically in November/December.
£150 disability cost of living payment for those in receipt of disability benefits
For nearly 6 million people who receive disability benefits – including Personal Independence Payments, Disability Living Allowance, and Attendance Allowance – there will be an additional one-off cash payment worth £150, paid out from DWP in September. This will help to pay for the higher costs often faced by those who require special equipment in their households.
£500 million will be added to the existing Household Support Fund
This will ensure local councils can support those not covered by the above set of payments. Local councils will continue to have discretion over exactly how the funding is used.
Doubling the £200 rebate to £400 and turning it into a cash grant
In addition to supporting those on the lowest incomes, the Government That is why the initial £200 rebate for every household we announced in February will be doubled to £400 – and we will cancel the existing clawback mechanism, thereby turning it into a £400 cash grant for every household. This will continue to be delivered by energy suppliers from October, with payments spread over six months.
Lucy Allan MP said:
I am reassured that the Government continues to listen to the needs of my constituents. The Chancellor’s announcement today goes above and beyond to support those in Telford under pressure from the global rise in the cost of living.
In particular, the £500 million top-up to the Household Support Fund will help get money to those households in Telford who may not be eligible for the other measures announced today.
It is the right approach for Government to give money to local authorities to allocate to residents on a case-by-case basis. I would encourage Telford residents who need support to apply to Telford & Wrekin Council for support through the Household Support Fund.
I will be closely following Telford & Wrekin’s progress in getting that money to households who need it most.
You can read more about the Chancellor’s package of support for households online here.
