Charities have said that the new windfall tax designed to help families deal with the cost-of-living crisis is a “sticking plaster” solution.
Addressing parliament yesterday, Rishi Sunak, the chancellor of the exchequer, unveiled a new package of measures worth over £15bn, with the majority set to support the most vulnerable households.
Sunak made a U-turn on imposing a windfall tax after he announced a temporary levy on oil and gas companies at a rate of 25%. The tax will aim to raise around £5bn in its first year and will be phased out once prices go back to normal levels. The money will go towards “easing the burden on families”, he said.
He also announced that households on the lowest incomes will receive a one-off payment of £650 in two instalments later this year. Other measures include an extra £300 for pensioners who receive winter fuel payments, a £150 payment for people in receipt of disability benefits and a doubling of the upcoming £200 energy bills discount.
Charities welcomed the long-awaited measures but were disappointed that they did not go further, with some saying that they failed to address the root causes of the problems.
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