Chancellor Rishi Sunak set to release new financial support package

Chancellor of the Exchequer, Rishi Sunak, is expected to unveil a support package worth billions to tackle the current cost of living crisis in the House of Commons today.

Recently, energy regulator Ofgem CEO, John Brearley, announced the price cap would rise by approximately £800 in October leaving many concerned about how they’ll manage.

Independent think-tank, The Resolution Foundation, believes the number of people in fuel poverty will rise from 5 million to 9.6 million when prices are raised further later this year.

A charity attempting to solve poverty in the UK, the Joseph Rowntree Foundation (JRF), has now come forward with suggestions as to how Mr Sunak may progress in tackling the cost of living crisis.

The organisation is calling on the Chancellor to fulfil his pledge to target support for the most vulnerable, since inflation is currently at 9% while benefits are at their lowest level since 1982.

JRF is primarily calling for Mr Sunak to uprate benefits in line with inflation now instead of waiting until April 2023, since those on the lowest incomes are spending the largest proportion of their money on essential items.

This is thought to be the most effective measure as it can be delivered through an already operating system, successful in reaching those who need it.

It was also suggested the Warm Homes discount should be expanded to automatically cover people on Universal Credit, giving people up to £140 off their electricity bill in the winter.

JRF believes an extra 5.5 million households could be made eligible and the rebate should be lifted to be in line with extra costs expected this winter.

Currently, it’s expected that Mr Sunak will convert his original plan to reduce energy bills by £200 to lump sum payments for households on means-tested benefits.

However, JRF has pointed out that this measure requires a huge amount of money to be spent to match the scale of the problem.

The sum would need to be a large amount of money to be able to truly offset the costs people across the UK are expecting and this does not address problems with the benefits system.

The Chancellor will release his plans to tackle the crisis later today.

Photo by Heidi Fin