Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent estimate he has made of the impact of the raising of the projected energy price cap on the efficacy of the cost of living payments.
Answered by Simon Clarke
In May 2022, we announced over £15 billion of additional cost of living support, targeted at those with the greatest need. This package builds on over £22 billion previously announced, meaning government support for the cost of living now totals over £37 billion this year, equivalent to 1.5% of GDP. As a result, millions of vulnerable households will receive at least £1,200 of support this financial year, with the vast majority of households receiving at least £550.
We have always been clear that the government cannot seek to offset the entire impact of the increased cost of living for all groups. The government is committed to managing the public finances in a responsible way by targeting support where it is most needed, and we continue to monitor a range of factors, including the Ofgem price cap.
The government is monitoring a range of pressures on households, including the cost of energy, and as we move into winter we will continue to listen to people’s concerns and will seek to help households through challenging times ahead.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the economic cost of the red weather heat alert of 18 and 19 July 2022.
Answered by Richard Fuller
We do not hold data on the specific cost of the red weather heat alert 18 – 19th July 2022. The ONS monthly estimate of GDP for July will become available on the 12th of September 2022.
Information about the risks to different economic sectors from heatwaves more generally can be found in the UK’s Third Climate Change Risk Assessment which is based on the Independent Assessment of UK Climate Risk, the statutory advice provided by the Climate Change Committee, commissioned by the UK Government and devolved administrations.
The support the government has provided over the past two years has put the UK economy in a good position to deal with current challenges, with a record number of employees on payrolls and a strong economic recovery from the pandemic. Annual growth in 2021 was the fastest in the G7 and the latest GDP figures for June showed the UK economy was 0.9% above its pre-pandemic levels.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the OECD's United Kingdom Economic Snapshot published in June 2022, what assessment he has made of the implications for his Department’s policies over the next twelve months of the zero per cent growth forecast for GDP in 2023.
Answered by Richard Fuller
Annual growth in 2021 was the fastest in the G7, and GDP data for Q1 2022 showed the UK had the joint fastest growth in the G7.
The Office for Budget Responsibility are the government’s official forecaster, and they will update their forecasts for UK GDP in the Autumn.
Like other advanced economies, the UK is affected by global economic challenges, including the unprovoked Russian invasion of Ukraine. Support provided over the past two years has put the UK economy in a good position to deal with these challenges, with a record number of employees on payrolls and a strong economic recovery from the pandemic.
The government has also taken significant action to support households with the cost of living, totalling around £37bn this year.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the OECD's United Kingdom Economic Snapshot published in June 2022, what assessment he has made of the implications for the UK economy of the zero per cent growth forecast for GDP in 2023.
Answered by Richard Fuller
I refer the Honourable Member to the answer I gave to PQ UIN 37482.
Asked by: Rachel Reeves (Labour - Leeds West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department made of additional payments to multiple-home owners in their distributional analysis on the Cost of Living Support package.
Answered by Simon Clarke
The Department for Business, Energy, and Industrial Strategy (BEIS) consulted on the basis of paying EBSS via domestic electricity meter points. The Government response will be published later in the summer.
The Government’s intention is for EBSS to reach as many households as possible from October, while minimizing the administrative complexity of the scheme. The Department for Business, Energy, and Industrial Strategy (BEIS) has consulted on the basis of paying EBSS via domestic electricity meter points.
While some households have second homes or multiple meter points, it is important to balance this against the timely and efficient delivery of this scheme.
Distributional analysis produced by HM Treasury relies on an established microsimulation model of the UK tax and benefit system. This model is designed to be used for estimating the impacts of a wide range of policies and does not contain information about households’ multiple home ownership.