07 September 2022
The brand new Prime Minister Liz Truss, who succeeded Boris Johnson simply yesterday, 6th September 2022, is known to be all weapons blazing relating to rising vitality payments. Ms Truss is predicted to borrow billions to restrict vitality prices for particular person households and companies throughout the nation.
To this point, it’s understood the PM might cap vitality payments at £2,500. Full particulars are anticipated to return out tomorrow, 8th September. The newest worth cap, which comes into power October 1st, will carry the common family payments up from £1,971 yearly to a staggering £3,549. With the price of residing rising quickly, assist is required desperately. Will Liz Truss be the one to assist us?
At present, there’s a £400 vitality grant being given to each family within the UK from October. This shall be break up over a six-month interval. Households aren’t anticipated to pay this again.
The prices
The package deal from new prime minister Ms Truss is predicted to price a whopping £100 billion. It’s unclear, nonetheless, how lengthy the federal government will cut back the vitality cap for, and the way tax payers shall be anticipated to pay again this fortune. Ms Truss has vowed to “ship on the vitality disaster”, with thousands and thousands hoping for actual, efficient assist.
There was information of vitality firms producing plans to assist clients with their vitality prices although a government-backed fund. Vitality firms would dip into this fund to subsidise vitality payments, with the extra prices being added to shopper payments over an extended interval to unfold the fee. Nevertheless, it’s stated the federal government are reluctant to see cash added to shopper payments for as much as 20 years into the long run.
A transfer to borrow £100 billion in addition to slicing private taxes and boosting public spending might pose a problem. Moreover, UK authorities borrowing hit an eight-year excessive this week. This provides even larger stress to the brand new PM as she takes up workplace.
Nevertheless, the entire wanted to carry down the vitality worth cap will fluctuate. This will depend on the wholesale costs of fuel and electrical energy.
As normal, right here at MoneyMagpie we are going to attempt to hold you as up to date as doable as information emerges.