Prime Minister Boris Johnson has said he will call on other government ministers in the Cabinet to help ease the cost of living crisis affecting millions in the UK. Households across the country are being squeezed financially from every direction and many have seen energy bills soar in recent weeks.
Mr Johnson has said he will rally his Cabinet colleagues and departments over the coming weeks to double down on finding new ways to ease such pressures; help more people get high-paid jobs and promote the support that is already available. Financial support currently being provided includes the £150 council tax rebate and an uplift to incomes of the lowest paid through the National Living Wage, the government said.
Ahead of meeting with other Cabinet ministers, Prime Minister Boris Johnson said: "With household bills and living costs rising in the face of global challenges, easing the burden on the British people and growing our economy must be a team effort across Cabinet. We have a strong package of financial support on offer, worth £22 billion, and it’s up to all of us to make sure that help is reaching the hardest-hit and hard-working families across the country.
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“We will continue to do all we can to support people without letting Government spending and debt spiral, whilst continuing to help Brits to find good jobs and earn more, no matter where they live.”
No 10 said the Prime Minister wants ministers to find solutions to the crisis without solely relying on new government spend. A spokesperson said that high levels of public debt following the unprecedented support provided during the pandemic, together with rising inflation and interest rates, mean the government must maintain control of the public finances.
The government is also renewing efforts to promote the established support schemes on offer, where thousands of people and families may be missing out. No 10 says it is estimated that around 1.3 million families could be taking up government support through Tax Free Childcare, which offers up to £2,000 towards childcare costs a year.
It adds there are also still an estimated 850,000 eligible households who are not claiming Pension Credit, which could be worth over £3,300 a year for pensioners. No 10 added that private companies must play their part too and ministers won’t hesitate to crack down on unacceptable behaviour taking place within industry, such as bills being unfairly increased.
It comes as the Business Secretary wrote to Ofgem to urgently look into claims that energy suppliers may be making unjustified increases to consumers’ direct debits. Amid warnings of another increase in the energy price cap later this year in October, energy bosses previously called for more government support for households facing a 'truly horrific' winter.
Michael Lewis, chief executive of E.ON, warned that up to 40 per cent of households could be in fuel poverty by the end of the year. He also recently told MPs his firm was 'expecting a severe impact on customers' ability to pay,' adding that he expected debts of customers to rise by 50 per cent - or £800m.
Around one in 10 per cent of UK households are reportedly suffering from fuel poverty at the moment.
