In recent weeks alleged lockdown parties and suitcases full of wine have been the biggest threat to Boris Johnson’s premiership. But throughout the winter months, another threat has been brewing — one that could, in the longer term, determine the government’s fate. Britain’s cost of living crisis has been steadily worsening as price hikes for essential goods and services (food, transport) continue to outpace predictions. But the worst is still to come, with Ofgem’s announcement this morning that energy bills for the average household will be rising by nearly £700, as the energy price cap is lifted by 54 per cent come April.
Enter Rishi Sunak with an emergency package of support — a concept he’s become all too familiar with in the era of lockdowns and restrictions. To help ease financial burdens on households, the government will be working with energy companies to provide an Energy Bills Rebate — an upfront discount of £200 on bills this spring, which will be repaid by households in £40 instalments over the next five years.
The average household may be getting £350 relief on energy bills, but will be paying around £200 more to the taxman too
Those 80 per cent of households in council tax bands A to D will receive a £150 council tax rebate as well, which won’t need to be repaid.
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