Factbox: How is the UK helping consumers with rising energy bills?

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A warning label is seen on the front of a gas meter at a house in Manchester, Britain September 18, 2021. REUTERS/Phil Noble

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LONDON, Aug 9 (Reuters) – British Prime Minister Boris Johnson and the two candidates vying to replace him are under growing pressure to provide additional support to households facing an unprecedented rise in their energy bills.

The Conservative Party leadership race between Foreign Secretary Liz Truss and former finance minister Rishi Sunak runs until September 5. now for the difficult winter ahead. Read more

WHAT CANDIDATES SAID THEY WILL DO

Sunak said he was confident more support was needed to help households through the winter, and he would act as soon as it was confirmed how much bills would rise.

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The October cap will be announced on August 26.

Leadership leader Truss said she did not believe grants were the best way to help households through the cost of living crisis and preferred to focus on tax cuts.

Truss said it would apply a temporary moratorium on environmental and social levies added to consumers’ electricity bills.

SUPPORT ALREADY ANNOUNCED

In May, when Sunak was finance minister, the government introduced a 15 billion pound ($18.17 billion) support package to help households struggling with the soaring cost of living, funded in part by an exceptional tax on oil and gas companies.

This included:

– Discount on energy bills

Each household will receive a £400 credit on their energy bills from October. This replaced a previously scheduled £200 rebate on energy bills which was due to be paid back over the next five years. The new discount will not have to be refunded.

– Low-income households

More than 8 million low-income households receiving state benefits also receive another one-time payment of £650, paid directly into their bank account in two instalments. The first payment, of 326 pounds, was made in July and the second will follow in the fall.

– Retired

More than 8 million pensioner households, who already receive a winter fuel payment, will also receive an additional one-time payment of £300.

– People with Disabilities

Some 6 million people who receive disability benefits will receive an additional one-off payment of £150 from September, to help meet rising costs for things such as energy-intensive medical equipment.

– Household Support Fund

This fund, which provides cash that local authorities distribute to support vulnerable households, will be boosted by £500m to extend it to March 2023 from October.

($1 = 0.8255 pounds)

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Compiled by Kylie MacLellan Editing by Mark Heinrich

Our standards: The Thomson Reuters Trust Principles.

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