Inflation: Cost of Living

(asked on 21st June 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what fiscal steps he is taking to help reduce the impact of inflation on households' cost of living.


Answered by
Simon Clarke Portrait
Simon Clarke
This question was answered on 28th June 2022

Millions of households across the UK are struggling to make their incomes stretch to cover the rising cost of living. The government is providing over £15bn of additional support, targeted particularly on those with the greatest need. This package builds on the over £22bn announced previously, with government support for the cost of living now totalling over £37bn this year.

The government is helping all domestic electricity customers in Great Britain to cope with the impact of higher energy bills, with £400 off their bills from October through the expansion of the Energy Bills Support Scheme (EBSS). This is a doubling of the £200 of support announced in February, and there will no longer be any repayments. The government will deliver equivalent support to people in Northern Ireland.

The government is supporting over 8 million households across the UK in receipt of means tested benefits with a one-off Cost of Living Payment of £650, paid in two instalments.

The government is giving additional UK-wide support to help disabled people with the particular extra costs they will face, with 6 million people who receive non-means tested disability benefits receiving a one-off disability Cost of Living Payment of £150.

The government is also providing extra support to help all pensioners across the UK stay warm this winter. Over eight million pensioner households will receive an extra one-off £300 this year to help them cover the rising cost of energy this winter.

For households that are not eligible for Cost of Living Payments or for families that still need additional support; the government is providing an extra £500 million of local support, via the Household Support Fund. The Fund will be extended from this October to March 2023, bringing total funding for the scheme to £1.5 billion.

Millions of the most vulnerable households will receive at least £1,200 of one-off support in total this year to help with the cost of living.

The government is also committed to tackling the underlying, long-term factors driving cost of living challenges. This includes: helping people into work and supporting them to keep more of what they earn; solidifying our supply chains and boosting our energy security; and driving economic growth through a lower tax, dynamic market economy.

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