The government's measures to address the rising cost of energy bills go nowhere near far enough


Britain. 2022. Cost of living crisis. Britain has soaring energy bills.

The Observer view on Britain’s growing cost of living crisis | Observer edito…

  • Rishi Sunak, has chosen to prioritise Conservative voters – and hence his own leadership prospects
  • The measures are a flat-rate, poorly targeted council tax rebate that 80% of households will benefit from
  • More than 40% of its value will go to households in the top half of the income distribution
  • While more than 600,000 low-income households will miss out
  • The £200 rebate for all households will be taxed back through a £40-a-year surcharge for the next five years, which will push today’s cost pressures into the future.

1. And

  • Low-income families have been at the sharp end of tax credit cuts and benefit freezes over the last decade, with many low-paid parents losing thousands of pounds a year as a result.
  • The savings paid for income tax cuts that disproportionately benefited better-off households;
    • they were a political choice made by successive Conservative chancellors, supported between 2010 and 2015 by the Liberal Democrats.
  • The cuts have left less affluent households particularly vulnerable to this cost-of-living squeeze

2. So

  • Government support to help with rising energy bills should be targeted at those who need it most, through the tax credit and benefit system

3. Elsewhere

3.1. In my garden

Notes that link to this note (AKA backlinks).

3.3. Mentions

This page last updated: 2022-02-06 Sun 08:10. Map. Recent changes. Source. Peer Production License.