Loughborough MP Jane Hunt has welcomed a ‘significant’ package of measures which have been announced by the Chancellor of the Exchequer today to help people in Loughborough with the rise in the cost of living.
Due to a series of global forces – economies reopening following the pandemic, Russia’s invasion of Ukraine, and a fresh wave of lockdowns in China – families and businesses are being hit here at home through a significant rise in inflation and therefore everyday prices. To help families to help tackle the challenges posed by the cost-of-living challenges, the Chancellor has announced £15 billion package which will support the most vulnerable one-third of households with around £1,200 each.
The package will, in-part, be funded by a new Energy Profits Levy on oil and gas companies, which will raise around £5 billion over the next twelve months, but crucially this will include investment incentives.
The package will include:
- £650 cost of living payment for every household on means-tested benefits. This will mean that people will be directly sent a one-off cash payment of £650, paid out from 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.
- £300 pensioner cost of living payment for every pensioner household in receipt of Winter Fuel Payment. Pensioner households already receive Winter Fuel Payments, which have increased to £300. The Government 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 those on 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 to help hardship cases. There will be 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 rebate to £400 – and turning it into a cash grant. As well as supporting those on the lowest incomes, it is also fair that we help working families. That is why the initial £200 rebate for every household that was announced in February will be doubled to £400 – and the existing clawback mechanism cancelled, 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.
Shortly after the Chancellor announced this package of support, Jane commented:
“This is a significant package of support that will make a huge difference for residents in Loughborough. It is right that we not only help those on the lowest incomes and the vulnerable, but all those working families and households who are having to contend with rising prices.
“This comes on top of other measures that have been put in place to help residents with the cost of living. This includes the £150 council tax rebate which are currently being paid by Charnwood Borough Council.
“The Government is serious about helping people through these uncertain times, and I am delighted with this package of support.”