LONDON (CU)_As the cost of living crisis in the UK continues, Chancellor Rishi Sunak is due to outline the government’s support for British citizens this week. Amid warnings that skyrocketing prices of fuel, energy and food could plunge millions of Brits into poverty, speculations vary on what will be offered by Number 10 to help households cope with the crisis.
The chancellor has already hinted the possibility of cutting fuel duty by up to 5p per litre as forecourt prices sour amid the escalating conflict between Russia and Ukraine. The move has attracted the support of MP Keir Starmer, who repeated calls for a windfall of tax on energy giants to drive down rising energy bills. “Everybody is talking about how they’re feeling the pinch. They want to know that the Government is hearing them, that it’s going to do something about it,” the Labour leader said. “I think the simple things are a windfall tax on oil and gas companies who’ve made more profit than they expected, use that to bring down bills.”
He went on to note that if the government intends to address the crisis of increasing fuel prices, “then, of course, we will support that”. Another focal point in the chancellor’s spring statement is the planned National Insurance rise, which was described by Starmer as the “wrong tax at the wrong time”. Some speculate that Sunak would raise the threshold it starts to be paid at in order to ensure lower-paid workers are not subjected to the rise. However, the Resolution Foundation says that boosting benefits would bring fur times more support to family on lower income instead of scrapping the NI rise.
Meanwhile, it has also emerged that in April next year, pensions could rise by more than 7 per cent, with the increase expected to be based on average wages, 2.5 per cent or CPI inflation figure from September, whichever is highest. While this could mean a bumper rise for pensioners next spring, they are due to experience hefty real-terms cuts this year before such a boost. The Resolution Foundation projects inflation to reach 7.2 per cent by September, which means a pensions rise of £13 a week. However, the think-tank is calling on ministers to ease pressure now, blasting the “rollercoaster ride” that is currently being experienced by British households.
