Cost of living measures unveiled

Date: Friday 27 May 2022

---

Chancellor Rishi Sunak has announced a package of measures intended to ease the impact of the rising cost of living. These include:

• Every household in the UK will be given £400 by the government in October, to help them with an expected further hike in energy bills this winter
• The poorest households will also get a one-off payment of £650 paid directly into their bank accounts in two lump sums in July and the autumn
• The new measures, worth £15bn in total, will also include separate one-off payments of £300 for pensioner households and £150 for individuals receiving disability benefits
• The cost will be partly offset by a 25% windfall tax on oil and gas firms' profits, which have soared in recent months

The Institute for Fiscal Studies think tank called the measures "hugely redistributive" and the Resolution Foundation, which campaigns to end poverty, said they were "progressive", with twice as much going to low-income households than high income ones.

Business lobby group the CBI warned the windfall tax would damage investment in the UK's "energy security and net zero ambitions".

Hayley Pells of Avia Autos and Head of IAAF’s Garage Section said:

The announcement from the Chancellor is certainly welcome to all regarding the help with rising energy costs, but it does little to address the concern of rising energy costs to business. Unless addressed these costs are ultimately borne by the consumer as organisations will have no other choice but to raise prices. It was interesting to note there was an absence of comment regarding MOT frequency to combat the rising cost of living.

---