Rishi Sunak, Chancellor of India, will announce the grant for energy bills as part of a package to address the cost of living crisis. This will help shift the focus away from Partygate row
According to reports, all households in Britain will receive a discount on their energy bills up to PS400. They won't need to repay it.
Sources say Rishi Sunak will announce the grant plan, which will be distributed by energy companies, on Thursday. This is part of a package that will help reduce the rising cost of living.
According to reports, the Chancellor will end the much-criticized "rebate & clawback" scheme that would have allowed people to get a PS200 energy bill discount starting in October 1.
Suppliers would have charged PS40 per year for five years to recoup the funds - thus causing criticism that it was a loan.
According to The Times, instead of the PS200 that is repayable, families will receive a non-repayable sum up to PS400.
In a major U-turn, the Chancellor will unveil a "mix and match" package of support that could cost more then PS10billion. It would be funded by a windfall oil and gas tax.
Boris Johnson has repeatedly criticised Labour's call to a windfall tax. The PM wants to make a statement under the Covid lockdown, which is aimed at preventing parties from destroying Covid.
Other measures include cuts in council tax bills, and increases in benefits. ITV highlighted the idea of a one time payment to the PS600's poorest members.
Ministers are avoiding the restoration of the PS20 Universal Credit Uplift during Covid because they fear that any increase could be permanent.
Other measures discussed include an increase in winter fuel allowance.
The plan does not include a VAT reduction on fuel and energy, with any tax cuts being delayed until the Autumn Budget, The Times reported.
Even with the extra support, many households will still be facing astronomical increases. Jonathan Brearley, chief executive of Ofgem, warned that energy bills would rise by an additional PS800 in October to PS2,800.
In addition to April's rise, the average bill will have increased by 119% over the course of a year.
