Featured Image Credit: Parliament/Alamy
Topics: News, Rishi Sunak
Shola Lee
Rishi Sunak has announced a series of pledges to support all UK households amid the cost of living crisis.
In a speech delivered to the House of Commons earlier today (26 May), the chancellor revealed government pledges aimed at alleviating the struggles faced by many across the UK due to the rising cost of living.
The government is offering £400 to all UK households to help cope with rising energy bills, with extra one-off payments being offered to vulnerable members of the public.
Taking the floor, Sunak said: "The high inflation we're facing now is causing acute distress for the people of this country. I know they are worrying and people are struggling.
"No government can solve every problem particularly the complex challenge of inflation, but this government will never stop trying to help people."
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In recent weeks, the Chancellor of the Exchequer has come under fire for increasing living costs in the UK and offering seemingly little help to those most vulnerable.
Sunak acknowledged these struggles and said: "We are supporting families with the cost of living."
So, what support is the government offering?
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Well, Money Saving Expert Martin Lewis broke down the key takeaways.
He explained that those from low income households with disabilities could expect to receive £1,100, while low income households could expect £950.
Meanwhile, pensioners are being offered £700 and all other homes £400, with an extra £150 council tax back for bands A-D.
Sunak has confirmed that 'the vast majority of households will receive £550'.
This £400 grant applies whether or not you're on benefits.
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The payments are expected to arrive later this year, just in time for yet another energy price increase.
Ofgem has estimated that the energy price cap will rise to £2,800 in October this year.
Alongside the grants, Sunak announced a temporary tax levy to tax profits from energy companies, while trying to incentivise further investment.
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"Like previous governments, including Conservative ones, we will introduce a temporary targeted energy profits levy, but we have built into the new levy [...] a new investment allowance similar to the super-deduction that means companies will have a new and significant incentive to reinvest their profits.
The new levy will be charged on profits of oil and gas companies at a rate of 25 per cent."
The extra cash and levy will come as a relief to many across the UK, who have been struggling to cope since the April 1 energy bill increase.