Rishi Sunak to cut energy bills by £400 with windfall tax on oil and gas firms amid cost of living crisis

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RISHI Sunak is set to give hundreds of pounds from its energy bill to help every household in the UK with the cost of living crisis.

chancellorWhich is expected to announce plans in the House of Commons tomorrow, reportedly could cut bills by £400 with an unexpected tax on oil and gas firms.

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Sage Sunak could cut energy bills by £400 to help with cost of living crisiscredits: PA

He would scrap a plan for a “discount and clawback scheme”, which would have given people £200 off on their bills from October, many times Report.

Mr. Sunak would instead convert the effective loans – which would later have been paid back in huge bills – into grants to energy companies.

The Times reports that the value of the rebate can be increased to £400, with no need to refund the amount.

The plans, which could set the government back £10 billion, will be part of a “mix and match” package that will feature a range of measures to help the most vulnerable deal with rising energy bills as well as inflation.

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Ministers are looking at cutting council tax bills – beyond the previously announced £150 exemption for bands A to D – and increasing benefits.

However, he has refused to reinstate the £20 universal credit raise amid concerns that any increase will become permanent.

Mr Sunak and Boris Johnson have rejected plans to cut VAT on energy and fuel for now.

They are yet to decide on a possible cut in VAT and income tax, which is set to be delayed until the autumn budget.

The latest support package is expected to be partly funded by an unexpected tax on excess profits from oil and gas companies, which is expected to take effect in the autumn.

A government source says the measures will be “temporary and targeted”.

it comes after the energy regulator Ofgem warned that the household energy bill would rise by another £800 to £2,800 in October.

The huge hike means that even with government help, families will stop slapping their pockets.

Boris Johnson acknowledged today that Britain was in a “very difficult financial position” following the COVID pandemic.

He warned homes at a Downing Street press conference this afternoon to see “pressure for some time to come”.

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But he added: “We will continue to respond, just as we responded during the pandemic.

“It won’t be easy, we won’t be able to fix everything. But I would also say that we will get through this and we will get through it well.”



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