Rishi Sunak warned that it could not fully protect heavy households from huge bill increases, and defended its A support package of £ 21 billionwho donated hundreds of millions of pounds to homeowners and wealthy retirees.
The chancellor also denied that he was under pressure Boris Johnson to announce aid to those affected by the cost of living crisis to distract attention Report by Sue Gray at parties and breaking the rules on Downing Street.
Mr Sunak was fried by the Treasury Selection Committee on Monday, hours before the Prime Minister faced a vote of confidence it could end his time in office.
He was questioned about the fairness of new cost-of-living measures after studies showed that wealthy retirees were among those who would see the greatest benefits.
Labor spokeswoman Sheevan McDonough asked how it might be right for people with more than one property to receive several discounts of £ 400.
Mr Sunak said it was an inevitable consequence that part of the proposed support had become universal rather than targeted.
A number of campaign groups called on the Chancellor to ensure that any assistance was targeted at those most in need to get the best value for money and reduce the likelihood of further heating up inflation.
The chancellor also told lawmakers that the prime minister had not asked him to make an announcement of spending the day after the publication of a report by senior civil servant Sue Gray on a series of parties ending the blockade in Room 10.
He said the time of the announcement of financial support last month was a result of what the Treasury had to wait until it had enough data on the expected increase in energy prices this fall.
The Chancellor said: “As price restrictions work, there is an observation window from February to August; until you’re done, you don’t know what it will be. Although there were estimates, no actual data were available.
“We couldn’t do that for the spring statement because the observation window barely opened for the price limit because anything could have been a very wrong size.
“I’ve always said I want to find the right balance in reassuring people and waiting for enough information to ensure its proper size.”
For several weeks, Mr Sunak had refused proposals from opposition groups and economists that he needed to intervene immediately to offer help with rising bills.
Last month, the chancellor said it would be “stupid” to announce support in the summer before changing his mind.
The time of change has sparked speculation that it was motivated by a desire to divert public attention from anger over a series of drunken events taking place on Downing Street during the blockade.
Mr Sunak also told the Finance Committee on Monday that he could not fully protect people from the sharp rise in the cost of essential goods.
The cost of heating and electricity for the average house could rise by another £ 800 if the Ofgem price is revised in October and the bills will be around £ 2,800 a year.
High energy spending has helped push inflation to a 40-year high of 9 percent, and further growth is expected this year.
Mr Sunak stressed that the support measures introduced last month were “temporary” and dismissed the view that he had left the door open for further action.
He told the committee: “When I am asked about further measures, I always give the same answer – I would not read anything more or less.
“This is something that for the last two years I have always tried to react to the economic situation the way I see it and how it affects the country.
“The structure of what we’ve established is, by definition, temporary, and it’s a carefully and well-constructed package.”
Rishi Sunak protects living wage costs for homeowners and wealthy retirees
Source link Rishi Sunak protects living wage costs for homeowners and wealthy retirees