£15 billion Cost of Living Support package announced

The government has announced a £15 billion package of support to help with the rising cost of living.

The Cost of Living Support includes a new, one-off £650 payment to more than 8 million low-income households on Universal Credit, Tax Credits, Pension Credit and legacy benefits, with separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits.

The government has also announced that the energy bills discount due to come in from October is being doubled from £200 to £400, while the requirement to pay it back will be scrapped. This means households will receive a £400 discount on their energy bills from October.

The new Cost of Living Support package will mean that almost all of the eight million most vulnerable households will receive at least £1,200 of extra support this year, including the £150 council tax rebate that many families received last month – equal to the average energy price cap rise over this year.

A £500 million increase for the Household Support Fund, delivered by Local Authorities, will also be extended from October until March 2023. This brings the total Household Support Fund to £1.5 billion.

To help pay for the extra support, the Chancellor of the Exchequer Rishi Sunak said a new temporary 25% Energy Profits Levy would be introduced for oil and gas companies, reflecting their extraordinary profits. At the same time, in order to increase the incentive to invest the new levy will include a new 80% investment allowance. This balanced approach allows the government to deliver support to families, while encouraging investment and growth.

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