Last week saw two important announcements for Cornwall.
The first was the Government’s Levelling Up White Paper and
it was good to see Cornwall feature significantly in this.
But the announcement I want to focus on this week is the
financial support for energy bills.
The cost of all energy, commodities and the cost of living
has increased following the reopening of economies across the globe and I am
aware of the impact this is having on household bills.
We must be honest that there are limited levers the
government has to deal with these global problems. It is only our Government’s
energy price caps that has kept electricity prices down to their current level.
They would have been much higher, much sooner without it.
With that being said, the increases are now going to happen.
Ofgem has confirmed that the energy price cap will rise by almost £700 per year
from April.
Our Government has already taken steps to help which has
included reducing the Universal Credit taper rate, which means those in work
and on Universal Credit will keep up to £1,000 a year more of the money they
earn, increasing the National Living Wage, freezing fuel duty for the twelfth
year in a row, and launching a £500 million Household Support Fund to help the
lowest-income households with their bills.
But we recognise that we must go further to help families
with pressures from the increasing energy bills.
Along with my colleagues in Parliament I have been working
with the Chancellor Rishi Sunak and his Treasury team to explore ways in which
the Government can help offset these rises.
Last Thursday I was pleased to see the Chancellor announce
the Energy Bills Rebate, which will help households across the constituency
with £9billion of support measures.
These measures include a £200 ‘smoothing’ rebate on energy
bills for households, to be recovered over the next five years at £40 per year
– starting from April 2023.
They will also see a £150 cash rebate for homes in Council
Tax bands A-D, which is 80% of all
households, helping both lower and middle-income families.
Cornwall Council will also be provided with a discretionary
fund of nearly £150m to help lower income households in higher Council Tax
bands, and households in bands A-D who are exempt from Council Tax.
The Chancellor has also confirmed that he will expand
eligibility for Warm Homes Discount by a third, so that 3 million vulnerable
households will now benefit from that scheme which provides a further £140
reduction in bills.
Other political parties’ proposals are less generous and far
slower to reach households – and they can’t pay for them.
Their plans are less generous for those not on benefits –
hard-working, middle-income families. Most middle-income households – those who
don’t receive means-tested benefits – would only benefit by £89 through
temporarily removing VAT. But under this Government’s plans, middle-income
households will benefit by £350, all households will receive the £200 smoothing
rebate, and 80 per cent of households, excluding the wealthiest, will receive
the £150 council tax rebate.
Our approach gets more help to those who need it most – and
faster. The council tax rebate is worth £3.6 billion and reducing VAT would not
be targeted meaning it would benefit wealthy households. The Chancellor’s
Energy Bills Rebate focusses on all low and middle-income families – not just
those who receive benefits.
This announcement is great news for people across the
constituency, who have been concerned about the cost of living increases. As a
firm believer that Government money should be distributed fairly, I am also
delighted to have been given assurances from the Chancellor, who I spoke to
before these measures were announced, that the council tax discounts will not
apply to second home owners.
As always, my office is available for any constituents
needing help, advice or guidance. Please do get in touch if I can help – tel.
01726 829379, email – office@stevedouble.org.uk
