Rishi Sunak is expected to announce new measures aimed at easing the cost of living crisis, potentially including a discount on energy bills funded by a windfall tax on oil and gas firms’ profits.
After a bruising day in the Commons for Boris Johnson following the publication of Sue Gray’s Partygate report, the chancellor is expected to tell MPs on Thursday that he will ditch the previously announced £200 loan on energy bills and replace it with a grant that will not have to be paid back.
According to reports, this discount could be increased to as much as £400, with other possible measures in a package worth up to £10bn including a further increase to the warm homes discount, increases in the winter fuel allowance, and cuts to council tax or VAT.
The expected U-turn on a windfall tax – despite stark opposition from some within Cabinet – comes after Ofgem chief executive Jonathan Brearley warned that the energy price cap will increase by a further £830 to £2,800 in October.
