People with £ 45,000 could struggle with their bills, the chancellor says

People with £ 45,000 could struggle with their bills, the chancellor says

People with £ 45,000 could struggle with their bills, the chancellor says

<span>Photo: James Manning / PA</span>“src =” https://s.yimg.com/ny/api/res/1.2/uLR6MS5NnEn7s6Mu.44itQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTU3Ng–/https://s.yimg.com/uu/api/res/1.2/ p0OjrPaZsi4.YyyADdZ.AQ– ~ B / aD02MDA7dz0xMDAwO2FwcGlkPXl0YWNoeW9u / https: //media.zenfs.com/en/theguardian_763/488610133d2c0cb6928f55213any.a.n.i.w. /uLR6MS5NnEn7s6Mu.44itQ–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTU3Ng–/https://s.yimg.com/uu/api/res/1.2/p0OjrPaZsi4.YyyADdOz.Whz0cz0cz0cz0cz0c0z0c0z0cz0c0z09 / en / theguardian_763 / 488610133d2c0cb6928f55213a49eb4d “/></div>
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People earning around £ 45,000 a year, as well as those benefiting from subsidies, may need government help to pay their energy bills this winter, the chancellor said.

Britain’s energy regulator Ofgem on Friday confirmed an 80% increase in the consumer price cap from October that will bring a household’s normal gas and electricity bill from £ 1,971 to £ 1,971. £ 3,549 per year.

In an interview with the Daily Telegraph, Nadhim Zahawi said that things would be “really difficult” for the average income, as well as for the most vulnerable in society.

Every household in England, Scotland and Wales will receive a £ 400 discount on their energy bills over the next few months, while those with universal credit and other benefits will receive £ 650.

Related: The Guardian’s point of view on energy prices: it’s time to cap the cap | Editorial

Zahawi said: “My concern is that there are those who have no benefits. If you’re a senior nurse or senior teacher with £ 45,000 a year, your energy bills will go up by 80% and likely go up even more in the new year – it’s really hard.

“If you are a retiree, it is really difficult. So universal credit is a really effective way to target, but I’m looking at what else we can do to make sure we’re helping those who really need the help. We are evaluating all options “.

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Charities have warned that the increase could “completely wipe out” the incomes of the poorest families, leaving millions with the threat of unpaid bills or a choice between warming up and eating this winter.

Zahawi said on Friday that Brits should consider cutting energy consumption in light of the huge increase in bills they will face given the new energy price cap.

Tory leadership contenders, Liz Truss and Rishi Sunak, have pledged support but neither has outlined the details of how they intend to do so.

The foreign minister, who is the favorite to be the next prime minister, has promised “decisive action” to provide “immediate support” if he wins the keys to No. 10.

However, it has so far been vague as to what form this assistance might take other than cutting green levies on energy bills and reversing the controversial rise in national insurance.

He said it’s not “fair” to announce his full plan before the contest ends or he saw all the analysis prepared in Whitehall.

Its rival, Sunak, said it will provide additional targeted support to the most vulnerable.

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Zahawi said he is working “all round” to work out options for an action plan for the next Prime Minister so they can “take flight” when they take office in September.

But he refused to rule out freezing the energy limit as Labor suggested, insisting that “nothing is out of the question”.

He said: “My concern is that it is universal. You are helping wealthier families, families like mine, where we can withstand the added pressure of high energy costs, and that takes away your ability to be long-term resilient.

“That would be around £ 100 billion in around 18 to 24 months. If I targeted that help, I would be able to provide more help to the most vulnerable. “

Related: Rising energy bills put millions of British households at risk of a winter catastrophe

It also reportedly said it is considering potential actions to help small businesses, including Covid-style cuts in VAT and corporate rates to support the hospitality and leisure sectors.

“If we don’t help those small and medium-sized businesses, my concern is the scar effect, the long-term scar effect on the economy,” he said.

“So what have we done on business rates, what have we done on VAT for particular sectors like hospitality. So we’re working out all those options to look into them.

“And of course Liz Truss has been talking for a couple of years about lifting a moratorium on green withdrawals. We’re looking into that too, which will help everyone with around £ 150 “.

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Another option on the table is making large loans to energy suppliers to help cut bills by up to £ 500 per year, the Daily Telegraph said.

Labor said its plan to freeze energy bills this winter would save someone on the minimum wage more than £ 40 a week.

However, the cost of his proposals was questioned by fact-checkers, who said the party had failed to take into account the fact that people consume more energy in the winter, causing them to underestimate the plan’s price by at least £ 5 billion. .

Sources from the work disputed the analysis of the charity Full Fact and said the party had paid for its plans based on consultation with Ofgem.

Ofgem’s chief executive, Jonathan Brearley, said the incoming prime minister and the new cabinet should “provide an additional and urgent response to the continuing rise in energy prices.”

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