The cost-of-living crisis is putting pressure on people’s incomes, and is a growing concern for many people in Basingstoke.
Maria said, ‘the pandemic and Russia’s invasion of Ukraine are the key driving forces behind the inflation and price rises we are seeing – particularly for energy costs. This is a worrying time for a lot of people, and the Government recognises the need to take some active steps to alleviate the pressures – these include grants, cash rebates, and one-off payments for individuals, as well as more funding for local authorities and tax cuts.’
'The Prime Minister’s announcement on 7th September that household energy costs will be reduced by £1,000 per year for the average household will greatly help people with their finances while we wait out the storm, and the Business Secretary’s plan to help businesses will help make sure we don’t lose important small enterprise from the Basingstoke community.’
Inflation is high across many countries in the world, and the situation is global. Most developed nations are in a similar situation to us and are suffering a decline in growth. To help combat this at home, the Government has taken action including that which is listed below.
Support for Individuals
- Energy Price Guarantee - The scheme limits the price suppliers can charge customers for units of gas and electricity, taking account of the Exchequer temporarily funding for two years environmental and social costs, including green levies. This will save the average household about £1,000 per year.
- £400 Grant for Energy Bills – Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher. This doesn’t need to be paid back.
- £150 Cash Rebate – Given to households in Council Tax bands A-D, most of these payments were made earlier this year.
- £114 Million Funding for Councils – this is discretionary funding for councils to help people who were not eligible for the £150 rebate.
- £650 Cost-of-Living Payment - for every household on means-tested benefits, made in two instalments.
- £300 Pensioner Cost-of-Living Payment - given to every pensioner household in receipt of Winter Fuel Payment.
- £150 Disability Cost-of-Living Payment – for those in receipt of disability benefits.
- National Living Wage Increase - increased by 6.6 per cent from £8.91 in 2021 to £9.50. Someone working full time on the NLW will see their earnings increase by £1,000 this year.
- National Insurance Personal Threshold Increase - from £9,500 to £12,570 in July 2022. This is a £330 tax cut for 30 million people.
- £1.5 Billion Household Support Fund - administered by local councils in England and further information will be available directly from them. Eligibility will be determined by individual councils. It is in place to help those in most need with food, energy, and water bills.
- Fuel Duty Freeze – for the twelfth consecutive year.
Economy-Wide Support
- Taskforce on Oil – to support businesses in finding alternative sources of oil away from Russian supply.
- Energy Security Strategy – plans to accelerate the deployment of wind, new nuclear, solar and hydrogen, while supporting the production of domestic oil and gas in the nearer term
- North Sea Oil and Gas - producing gas domestically has a lower carbon footprint than importing, a licensing round for the North Sea is planned to launch in Autumn, bridging the gap to renewable sources.
- Shale Gas Extraction - the Government has lifted the moratorium on shale gas extraction. This will ensure we can maximise all available domestic sources, further reducing reliance on foreign energy and putting ourselves in a more secure position.
Energy Bill Relief Scheme
- A government discount on wholesale gas and electricity prices for all non-domestic customers (including the voluntary and public sectors).
- It will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts.
- Running for an initial 6-month period, it will apply to energy usage from 1 October 2022 to 31 March 2023, with a review to be done after three months to make sure people who need support are getting it.
- People do not need to opt in or apply – the discount will be applied automatically.
- The support for businesses is equivalent to the wholesale element of the Energy Price Guarantee for households.
- The amount prices will reduce will vary for each business depending on their circumstances and contract type.
Martin McTague, National Chair of the Federation of Small Businesses, said, ‘small businesses called for decisive action – now the government is delivering. With small firms the least able to avoid closure and 16 million employees relying on them, Ministers have listened to our community and got this big call right.’
Further Information
- For detailed information on how to apply for support, visit Cost of living support - GOV.UK (www.gov.uk)
- Energy Bill Relief Scheme written statement: https://questions-statements.parliament.uk/written-statements/detail/2022-09-22/hcws295
- Energy Price Guarantee written statement: https://questions-statements.parliament.uk/written-statements/detail/2022-09-08/hcws294