The announcement also comes just days after Ofgem chief executive Jonathan Brearley said that the price cap is set to rise to £2,800–increasing average annual bills by more than £800–due to the increasing cost of wholesale gas and electricity.
But when can we expect Sunak’s announcement and what could the support package include?
What time is Rishi Sunak’s announcement?
Rishi Sunak is expected to make his announcement at 11.30am today.
What is Rishi Sunak expected to announce?
The Chancellor is expected to unveil a package of support that could be worth around £10 billion, and he is also expected to cave in to pressure to impose a windfall tax on energy companies’ soaring profits.
The windfall tax could help fund measures which will be targeted to help the most vulnerable households. Sunak had previously said that he is not “naturally attracted” to a windfall tax but would be “pragmatic about it.”
Sunak is also expected to replace the £200 loan on energy bills with a grant that does not need to be paid back, and the discount could also be increased to £400.
He could also announce increases to the warm homes discount and winter fuel allowance, and may announce cuts to VAT or council tax.
There were calls for Sunak to “go big” with his support package following news that government finances were better than expected.
Just last week, the Chancellor said he “cannot pretend” it will be easy to cut the cost of living for families amid a “perfect storm of global supply shocks.”
Sunak said: ““There is no measure any government could take, no law we could pass, that can make these global forces disappear overnight.
“Our role in Government is to cut costs for families. I cannot pretend this will be easy. The next few months will be tough. But where we can act, we will.”