On top of previous announcements, the Government has announced today a welcome new package of support.
£650 cost of living payment for every household on means-tested benefits.
£300 pensioner cost of living payment for every pensioner household in receipt of Winter Fuel Payment.
£150 disability cost of living payment for those in receipt of disability benefits.
We are providing an additional £500 million for the existing Household Fund from October, to 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 October £200 energy rebate to £400 – and turning it into a cash grant.
This package equates to £1,200 for those on the lowest incomes – around one-third of all households.
Pensioners will receive £850. A pensioner household will receive £300 through the additional Winter Fuel Payment, £400 from the energy bills cash grant and £150 from the council tax rebate.
Hard-working families will receive £550. Most households will receive £150 from the council tax rebate, along with £400 from the energy bills cash grant.
Some individuals could receive up to £1,650. A low-income household on pension credit with a disability would receive the £650 one-off payment, £300 through the Winter Fuel Payment, £150 for disability benefit recipients, £400 from the energy bills cash grant, and £150 from the council tax rebate.
A targeted and temporary Energy Profits Levy on profits of oil and gas companies will help pay for this investment in households.
The new Levy will be charged on profits of oil and gas companies at a rate of 25 per cent, on top of the existing 40 per cent headline rate of corporation tax.
A new Investment Allowance will double the overall investment relief for oil and gas companies, so companies will have a significant incentive to reinvest their profits into the UK to decarbonise our energy production and increase our energy security. Rewarding the investment that we need to see.
Modelled on the ‘super-deduction’, for every £1 an oil or gas company invests, they will pay 91 per cent less tax – so the more a company invests, the less tax they will pay. And this relief will be available straight away, rather than waiting for profits which is normal for existing investment reliefs.
For more information please visit - Cost of Living Support – Get government support to help with the cost of living (campaign.gov.uk)
