Cost of living crisis: Chancellor makes ‘Emergency Budget’ announcement

Announcement has still left many people saying that this package of support does not go far enough

There has been increasing pressure on the UK Government to take action to address the rising cost of living - including by BASW, who earlier this week wrote to the Chancellor of the Exchequer calling for an emergency budget.

Unable to ignore the calls for action, the Chancellor came to the House of Commons today with an announcement on measures the Government were going to take in light of the growing pressure on households.

The Chancellor announced:

  • A “temporary, targeted, Energy Profits Levy” (aka a Windfall Tax) on gas and oil companies
  • A one-off £650 payment to those on income-related benefits
  • A one-off £150 payment to those on disability benefits (this can be in addition to the £650 income-related payment)
  • A one-off £300 payment to pensioners receiving winter fuel payments
  • £400 payment for every household which will be credited to their energy account

These payments are expected to be paid from July, with the energy payment starting from October. The additional winter fuel payment for pensioners will come in November/December.

These figures may sound large, but with the cost of living rising dramatically and energy bills expected to increase by £800 this year, the announcement has still left many people saying that this package of support does not go far enough.

While these announcements do reach many people, there are some notable groups that will not be helped, such as students who are in receipt of a student loan. Students are not normally entitled to access the benefits system and will receive the same amount of loan despite the cost-of-living soaring.

BASW will continue to campaign against poverty and austerity to make sure that nobody is unable to afford to live and that everyone in our society is able to thrive.