What is the government going to do?
Chancellor Rishi Sunak has said the most vulnerable people will get more support with the rising cost of living, and set out what he said was a £15bn support package.
So who will get what, and how will it be paid for?
Every household in the UK is to get an energy bill discount of £400
Those on the lowest incomes – around eight million people supported through welfare system – will receive one-off cost of living payment of £650 in two lump sums
Pensioners who receive winter fuel payment will receive a one-off payment of £300
Six million people who receive disability allowance will get a payment of £150
There will be a temporary windfall tax on the profits of oil and gas companies at a rate of 25%
Government support too little, too late – Lib Dem MP
Lib Dem MP Christine Jardine says her party have been calling on the chancellor to introduce a windfall tax since October, “when it could have made a difference” over the winter.
Sunak’s announcement is “too little, too late”, she says.
In response, Sunak says “now is the time to act”, because there is more certainty over what the energy price cap will be in the autumn, and support can be scaled “appropriately”.
Posted at 13:20
SNP: Chancellor’s announcements don’t go far enough
The SNP’s Kirsty Blackman says the chancellor’s announcements do not go far enough. She calls for an uplift in benefits to ensure they keep pace with inflation.
Blackman welcomes the introduction of a windfall tax but says she is disappointed it only covers oil and gas companies.
Chancellor Rishi Sunak sets out measures to address the rising cost of living, as the government seeks to draw a line under Partygate
One-off payments of different amounts will be given to the most vulnerable – the elderly, those with disabilities, and those with the lowest incomes
All households will receive a £400 discount on energy bills
Eight million of the lowest income families will also get a one-off payment of £650, Sunak says
He confirms a temporary windfall tax on oil and gas giants to fund the payments – a move called for by Labour
There will be a one-off disability cost of living payment of £150, and pensioners will get £300
The UK’s energy regulator Ofgem says typical *household energy bills are set to rise by £800 in October, to £2,800 a year*
Martin Lewis praises plans to scrap energy bill loan
Financial journalist Martin Lewis has welcomed plans to scrap a proposed £200 loan to help with energy bills, in favour of a £400 grant given to all households.
The campaigner – who spoke to Chancellor Rishi Sunak last week about the cost of living crisis – says the “loan-not-loan is thankfully now dead”, praising the decision as a “GOOD MOVE” (his emphasis) on Twitter.
Analysing the overall package of support, Lewis also says it “initially seems bigger than I expected” and adds he was “glad to see” the increase for vulnerable people.
Conservatives needed a new headline – Reeves
Shadow Chancellor Rachel Reeves continues, criticising the government for previously describing a windfall tax as “unconservative”.
“It shouldn’t take half a million pounds of publicly funded focus groups for the chancellor to realise that helping families and pensioners is exactly the right thing to do,” she says.
She adds the prime minister is “making fools” of conservative MPs.
He’s made them vote against a windfall tax three times, she says, and for months sent them to defend the “litany of rule-breaking in Downing Street” set out in the Sue Gray report.
“Labour called for a windfall tax because it is the right thing to do, the Conservatives are doing it because they needed a new headline,” she adds