‘My head sunk’: Martin Lewis says Rishi Sunak’s ‘limited’ help for soaring energy bills ‘not generous’

Money saving expert Martin Lewis has said his head “sunk” following Rishi Sunak’s “limited” plan to help households cope with soaring energy prices.

The founder of moneysavingexpert.com took to Twitter to share his thoughts on the chancellor’s spring statement earlier today where he announced that he will scrap VAT on energy efficiency measures such as solar panels, heat pumps and insulation installed for five years.

Mr Sunak said: “We’ll also reverse the EU’s decision to take wind and water turbines out of scope – and zero rate them as well. And we’ll abolish all the red tape imposed by the EU.

“A family having a solar panel installed will see tax savings worth over £1,000. And savings on their energy bill of over £300 per year.”

The chancellor was accused of being ‘out of touch’ by critics on social media, with many pointing out that the average person can’t afford solar panels so the measure would be of no help.

Mr Lewis agreed the measure does not go far enough, writing on Twitter: “If that’s all he’s doing on energy – it is limited and won’t impact the majority of households who will see a likely £1,300 average increase in year-on-year bills by October.

“My head has sunk. I just hope there’s a rabbit to come out of the hat.”

He added further that reducing VAT for green energy from five per cent to zero is “great for those who can afford it – but not a help in the immediate crisis”.

He later described the lack of direct help for households facing soaring energy bills as ‘not particularly generous’.

Tweets responding to Mr Lewis’s reaction to the spring statement agreed.

One Twitter user commented: “I’m in tears. This is not the help we need.”

Another said that her energy bills have risen £2,400 more a year. She wrote: “We can’t do this, why are we all working so hard when we can’t afford the basics?”

As well as scrapping VAT for green energy for homeowners, Mr Sunak’s key announcements from the spring statement include: a cut to fuel duty by 5p for one year, an increase on National Insurance threshold by £3000 to £12,750, and income tax rate is to be cut by 1p to 19p in the pound by 2024.

The chancellor told MPs: “Together with the freeze, it’s a tax cut this year for hard-working families and businesses worth over £5 billion, and it will take effect from 6pm tonight.”

Asda was the first major retailer to confirm it will cut prices with a 6p per litre reduction in petrol and diesel.

Despite the measures in the announcement, criticism of the Tory chancellor has been pouring in today.

Labour shadow chancellor, Rachel Reeves said Mr Sunak is making “ a historic mistake”.

She said: “Today was the day to scrap the tax rise on jobs, today was the day to bring forward a windfall tax, today was the day for the Chancellor to set out a plan to support British businesses.

“But, on the basis of the statement today and the misguided choices of this Chancellor, families and businesses will from now on endure significant hardship as a result.”

Xural.com