Inflation and expensive bills
Inflation hit 9% in April, its highest level in forty years, and is expected to rise above 10% in the fall.
The increase in bills is due to the decision of Ofgem, the regulatory body, to remove the ceiling imposed on the cost of electricity and gas. This pushed costs up 54% in April to £ 700 on average, with a further 40% increase to over £ 800 expected in October.
What the aid package includes
In addition to the payment for lower-income families, the package of measures announced on 26 May also includes a total empty contribution of £ 400 towards paying bills for all citizens in October, £ 300 of additional aid for retirees and of 150 pounds for disabled people. A third of British families will receive help, Sunak said: “This government will never stop trying to help people.”
Two months ago, the Chancellor was heavily criticized for announcing support measures deemed too limited to cushion the impact of the rising cost of living. For example, he had made a £ 200 contribution towards the utility bills, but stipulated that the sum would have to be repaid within two years. Yesterday, however, he increased the contribution to 400 pounds and declared that it will be non-repayable.
The Labor opposition gloated over the U-turn of the government. “We asked for an extraordinary tax on energy companies almost five months ago to help families and retirees in difficulty – said Rachel Reeves, shadow chancellor in Parliament -. Today it seems that the government has finally realized the problems that the country is facing ».