Column for the Gazette - submitted prior to the Energy Cap increase:
The cost of living has increased and with both inflation staying high for the time being, and energy costs continuing to rise, this winter will not be easy.
There has been considerable discussion about what the Government and the next Prime Minister should be doing about it, and indeed more will need to be done, but we must also remember that the £37bn package of support already announced has barely started.
More than eight million people on means-tested benefits will receive a payment of £650 this year, made in two instalments. This includes all eligible households receiving any financial support on the qualifying date of the following benefits; Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Pension Credit, Working Tax Credit and Child Tax Credit.
The first payment of £326 has been made, but a further second payment of £324 is due to be paid from September.
There is also a £150 payment made to people on qualifying disability benefits, which can be in addition to the above due to be paid in September.
Alongside these payments, there is also the Energy Bills Support Scheme which will see all domestic energy customers receive a one-off rebate of £400. This money will not need to be paid back, will start to be paid via your energy supplier, again, in September.
There is also an extra £300 for pensioner households paid as an increase to their winter fuel payment to be paid from mid-November.
Households liable for Council Tax in Bands A-D in England have already received a £150 Council Tax Rebate to help with the rising cost of bills and the Government has also extended the Household Support Fund until March 2023, providing an extra £421million of local support in England.
This support package is the most targeted support package in Europe but was of course based on previous energy cost projections.
I am sure the Government will be providing further support and help, be that through tax cuts or targeting those most vulnerable households. The Government can act as a safety net, but when prices increase ahead of income, when demand outstrips supply, we will all need to consider what we are spending our money on and will need to consider cutting back. We cannot expect the Government, the taxpayer, to cover every increase in cost for everyone, particularly when the primary cause of this inflationary surge is the rise in energy prices, linked to Putin’s brutal invasion of Ukraine and the continued war
We must tackle inflation, and Government spending more and more of the money that we, as individuals and businesses, have yet to earn and pay tax on, will only inflate demand, inflate prices and our economy, and lives will spiral out of control.
Many people have contacted me about how the contest to be the next Prime Minister has distracted from the number one issue right now, the cost of living. I and other MPs have met with the Chancellor recently and the Treasury has been working on multiple plans for the next Prime Minister’s consideration; I have also written with my thoughts and suggestions as to how we should immediately tackle the cost of living issue. While the debate between the two candidates in some people’s minds has not been entirely convivial, it has seen robust arguments on how to deal with what is a complicated and difficult problem to address. In some ways we are seeing in public, what the genuine disagreements are often like behind closed doors. I and almost all my colleagues on both sides of the House are often criticised for following their leader or the collective decisions made by cabinet. Behind the scenes and away from the cameras, we do debate and discuss the issues, we do not always agree, but at the end of the day we do agree to move forward collectively most of the time.
Whoever wins on 5th September and becomes our next Prime Minister we must move forward together and proactively address the cost of living in a pragmatic and responsible way. Supporting those who need the most help and beating back the inflation which hurts us all.
