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Daily Mirror
Daily Mirror
Politics
Dan Bloom

Boris Johnson could announce cost of living help TOMORROW to 'move on' from Partygate

Boris Johnson could bring forward cost-of-living help to as soon as tomorrow as the Prime Minister frantically tries to move on from Partygate.

The Prime Minister had only been expected to announce a new package for stricken families on the poverty line after the Queen’s Jubilee long weekend.

But it’s thought those plans are being torn up after regulator Ofgem predicted average bills will leap another £829 to £2,800 on October 1. That will almost double the number of households in fuel poverty from 6.5 million to 12 million.

And the Prime Minister is set to be named and pictured today by Sue Gray’s report into 16 parties in Downing Street and Whitehall - leading to pressure to distract from the saga.

Neither No10 nor Treasury sources denied an announcement could come as soon as Thursday - the last day before Parliament breaks up for a short recess.

The Mirror understands a package has still not been signed off between Boris Johnson and Rishi Sunak, leaving the timing up in the air as he faces a packed day of party fallout.

But one senior Tory predicted help “ASAP” - not just to help struggling families, but also to “change the subject from Sue Gray”.

The Prime Minister had only been expected to announce a new package after the Queen’s Jubilee long weekend (REUTERS)

A flurry of reports today suggest Chancellor Rishi Sunak has drawn up a £10billion package of support funded by a windfall tax on oil and gas giants.

The windfall tax was first suggested by Labour and Boris Johnson spent weeks trying not to implement it. Last week Keir Starmer told the PM: “Every single day he delays his inevitable U-turn - he is going to do it - he is choosing to let people struggle when they do not need to.”

The tax could be directly linked to the amount of investment each firm delivers but an idea to include electricity generators too has been dropped, multiple reports claim.

The Times reported 70% to 80% of the help would be targeted at the poorest through a mixture of universal and income-tested help.

The Warm Home Discount - which is being extended to more people and raised from £140 to £150 - could be extended further, as could the winter fuel payment for pensioners.

A flurry of reports today suggest Chancellor Rishi Sunak has drawn up a £10billion package of support - but for public sector workers it could be wiped out (stock photo) (Getty Images/iStockphoto)

And the Chancellor could boost a £150 council tax rebate which came through from April, or a repayable £200 energy bills discount that is paid in October.

Ministers have ruled out bringing back the £20-a-week Covid boost to Universal Credit, but some have claimed they could bring forward an annual uprating or tweak thresholds to help people in work.

Ministers have even reportedly discussed cutting VAT on energy and fuel - again, an idea put forward by Labour and rejected multiple times by Boris Johnson.

But any help could be swallowed up for 5.7million public sector workers after ministers signalled they’ll get pay rises below inflation - currently 9%.

Environment Secretary George Eustice today warned it was “quite important to try to show restraint” in public sector pay, as “if we continue to borrow and spend” during high inflation it could make the problem worse.

And No10 said a Cabinet meeting yesterday was told: “The risk of triggering higher inflation must be part of considerations when deciding pay awards this year."

Boris Johnson’s spokesman did not rule out overriding the decision of the review bodies if they suggest above-inflation rises.

The head of energy regulator Ofgem, Jonathan Brearley, will only make a decision on the energy bills price cap later this summer.

But he warned MPs it was likely to be around £2,800 for the average household - more than double the £1,277 it was in the winter just gone.

Ofgem warned soaring levels of energy debt, already at £1.3billion, were set to spiral even higher, along with the number of customers “self-disconnecting” because they cannot afford heating or power.

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, warned: “Unless the Government acts now, it will have blood on its hands this winter”.

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