Rishi Sunak's £300 is a stealth tax on UK homeowners – stop the handout and give it back
RISHI SUNAK is under fire from the energy sector after his announcement in the House of Commons as the Government attempts to limit the impact of energy price rises for consumers.
Rishi Sunak announces plans to help with energy cost rise
Mr Sunak has announced that the "vast majority" of households will receive £350 to lessen the blow of rising energy prices. He told the Commons that eligible households will receive £150 off their April council tax bill, plus £200 off their energy costs in October this year.
This £200 payment will be repaid over a five-year period beginning next April.
Local authorities will receive a 'discretionary fund' to help lower-income households in their remit of £150 million.
This means 80 percent of those who pay council tax in England will be eligible to save.
Dave Vince, founder of energy company Ecotricity, hit back at the Chancellor's announcements, saying the measures did little to protect those worst affected.
He tweeted: "There are no easy answers for those struggling to pay.
"We need the government to actually do something - not just lend money, what good is that?
"They need to stop taxing energy bills - £300 every year is a government tax on each of our homes.
"They should give that back."
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Households that fall under council tax bands A to D will receive the government-funded rebate.
The money allocated to councils will be to help lower-income households in high council tax properties, as well as properties in bands A to D that do not pay council tax.
The council tax rebate will not be a loan, but the £200 discount on energy bills will be repaid by consumers in future years as energy bills fall.
Mr Sunak said: "Just as the government stood behind the British people through the pandemic, so we will help people deal with one of the biggest costs they now face: energy."
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The Chancellor said that the "number one" issue on everyone's minds will be the rising cost of living.
Energy regulator Ofgem said on Thursday the sharp increase in wholesale gas prices would mean a 54 percent rise in the energy price cap from April.
This cap is a limit on how much energy suppliers can charge consumers.
The bills for the average household across the mainland UK will soar by £693 from April 1 for those on a default tariff.
The average consumer will receive an annual bill for £1,971, up from £1,277.
For those on a prepayment energy bill system, they will see an increase of £708 up to £2,017 on average per year.
This comes as the Bank of England announced that interests rates have increased for the second time in three months.
They said the rate will jump from 0.25 percent to 0.5 percent in a bid to stop the rise of consumer prices.