New Prime Minister Liz Truss announced today that household energy bills will be capped at £2,500 per year until 2024 as part of an estimated £150bn cost of living support scheme (estimated because Ms Truss refused to put a figure on the amount of support that would be provided, stating that “extraordinary times call for extraordinary measures”).
Businesses will also receive support, as bills are set to be capped at their current rate for six months. While this protection period is much shorter than was hoped by many, the Prime Minister said that further assistance will be given to vulnerable industries such as hospitality, with plans being formulated within the next three months.
This help package will be rolled out across the entire UK with Northern Ireland receiving equivalent assistance.
Concerns, however, have been raised that the measures should be more targeted at the most vulnerable. Millions are expected to be in fuel poverty this winter despite the assistance and many are critical over Ms Truss’ pledge to compensate energy firms for the difference between the price cap (which was due to rise by 80% in October) instead of focusing on ensuring that families can afford their bills.
It is difficult to calculate the costs of the scheme as the final figure will depend on the cost of energy on the international markets, which are often very volatile. The government intends to borrow the money to cover the support, adding to the economic burden brought about by the pandemic and the war in Ukraine.
The Prime Minister rejected Labour’s calls to extend a windfall tax on gas and oil company profits to cover the support package in a move which Labour leader Sir Keir Starmer said was “driven by dogma” adding that “working people” are the ones who will pay in the end.
Unlocking Financial Success with K2 Accountancy Group, Your Trusted Ilkeston Accountant
Welcome to K2 Accountancy Group, your reliable Ilkeston Accountant and partner for comprehensive and customised accounting services. As an Ilkeston-based, family-owned and operated business, we take pride in not only delivering top-notch financial solutions but also in giving back to the community through various fundraising initiatives and events.Breaking Down the Autumn Statement 2023: A Fiscal Pivot Towards Growth and Tax Cuts
The Autumn Statement in Brief
Today, The Chancellor of the Exchequer has delivered his autumn statement in the House of Commons after noting that the “plan for the British economy is working, but the work is not done”. Unlocking Success: Your Trusted Nottingham Accountants with Expert Back Office Services
Why Choose K2 as your Nottingham Accountants? At K2 Accountancy Group, we stand out as the premier Nottingham accountants, offering a unique blend of traditional financial services and specialised expertise in back office management. Our commitment to excellence sets us apart, making us the go-to choice for businesses in construction, hospitality, manufacturing, logistics, and beyond.HMRC's "Process Now, Check Later" Approach Leaves Taxpayers Vulnerable to Abuse