Rishi Sunak could announce a cut of £400 on energy bills for every home under a new cost of living support plan, according to reports. The Chancellor is set to announce a new package of support today (Thursday) in the Commons, which is likely to include a discount on energy bills funded by windfall tax on oil and gas giants.
Sunak will scrap the previously announced £200 loan on energy bills and replace it with a grant that will not have to be paid back, The Times reported. This discount could possibly increase to as much as £400.
The announcement will come just one day after Sue Gray's highly anticipated Partygate report was published.
READ MORE: Misery for millions as energy price cap to rise AGAIN by £800 to £2,800, Ofgem boss says
Boris Johnson refused to resign despite accepting the 'bitter and painful' conclusions of the report that revealed details of partying in government. The Prime Minister said he 'overwhelmingly' believes he should stay in power to tackle the nation’s challenges including the soaring costs of food and energy.
Mr Sunak's £10bn package of support could also include a further increase to the warm homes discount to help low-income households, increases in the winter fuel allowance, a further cut in council tax or a VAT cut. The need for extra help was illustrated by Ofgem chief executive Jonathan Brearley’s indication that the energy price cap will increase by a further £830 to £2,800 in October.
A Treasury spokesman said: “The Chancellor was clear that as the situation evolves, so will our response, with the most vulnerable being his number one priority. He will set out more details tomorrow [Thursday].”
