Yesterday, the Chancellor unveiled the Government’s Plan for a Stronger Economy. As residents will be aware, a series of recent global events have caused families and businesses to be hit with everyday price rises, and it is our priority to help the millions of families struggling with the cost of living.
The last few years have been unprecedented: from a pandemic that has severely damaged the global economy; to a cost of living challenge now being felt across the world. As a result of economies reopening following the pandemic, Russia’s invasion of Ukraine, and a fresh wave of lockdowns in China, families and businesses are being hit here at home through a significant rise in inflation and, therefore, everyday prices.
To help families cope with these challenges, the Government will double the initial £200 energy rebate (announced in February) to £400 and we will cancel the existing clawback mechanism, turning it into a £400 cash grant for every household. This will continue to be delivered by energy suppliers from October, with payments spread over six months.
For more targeted and specific help, there will be a £650 cost of living payment for every household on means-tested benefits. This means over 8 million of the most vulnerable households (around one-third of people in the UK) will be directly sent a one-off cash payment of £650, paid out from DWP in two separate instalments, with the first due from July and the second in the Autumn. Payments from HMRC for those on Tax Credits will follow one month later.
Pensioners will receive a £300 payment if their household is in receipt of the Winter Fuel Payment – supporting around 8 million pensioner households, which they will receive in November/December. There will also be a £150 disability cost of living payment for those in receipt of disability benefits – nearly 6 million people who receive disability benefits will benefit from this payment in September. This will help to pay for the higher costs often faced by those who require special equipment in their households.
The Government is also providing an additional £500 million for the existing Household Fund from October, to ensure local councils can support those not covered by the above set of payments. Local councils will continue to have discretion over exactly how the funding is used.
Today’s package of measures provides support worth over £15 billion, which combined with the over £22 billion of support we have already announced, means the Government is supporting families with over £37 billion of support – with over three-quarters of this support going to the most vulnerable households
Finally, this week I joined my counterpart in South Swindon, Sir Robert Buckland MP, in writing to the Transport Secretary Grant Shapps to support Swindon's bid to be home of the new Great British Rail HQ. Swindon's long and proud railway history makes it a very strong choice to be the home of British rail and our impressive technical education and training will offer the skilled workforce required to transform the rail sector, fulfilling the Government's commitment to levelling-up opportunities and outcomes across the country. Winning this bid would be a real boost for Swindon, and it is great to see so many people getting behind it!
