Business

“Rough Justice”: Sunak’s support gives rich pensioners 850 pounds, and poor families lose

Rishi Sunak’s energy accounts A new analysis has shown that support will give wealthy retirees £ 850, which they may not need until low-income families are considered.

£ 15 billion opened a grant package the chancellor on Thursday will hold “harsh justice” against some groups Resolution Foundation said.

The think tank says the biggest gains are wealthy retirees, while larger families will see their bills grow the most, but still get the same flat rate.

Mr. Sunak announced Fr. Discount on electricity bill £ 400 for every household in the UK, as well as targeted assistance to retirees who will receive an additional £ 300. This is in addition to the municipal tax rebate of £ 150 announced earlier this year.

People who receive disability benefits will receive another £ 150, and families who receive other benefits based on material values, such as a universal loan, will receive £ 650.

The Resolution Foundation said the measures were “bold and focused”, but some groups in need are most likely to see that the cost of living will rise faster than others.

In a low-income family with three or more children, their electricity bills will increase by £ 500 more a year than in a family without children, but waiting in line for the same government support.

Low-income families with many children are more likely than others to live in poverty, in part because of the two-child limit imposed in 2014.

The fund said an increase in benefits would help larger families and be £ 1 billion cheaper.

The government rejected this approach, in part because it sought to ensure that any financial support remained temporary.

Paul Johnson, director of the Institute for Fiscal Research (IFS), warned that calls for help are likely to resume next year because energy prices will remain high.

“I think the biggest risk is that the chancellor will be tempted to do it again and again, and I think that if that happens, we can really have a little trouble,” he told the BBC. Today program.

“He needs to make the most unusually difficult decisions at the end of this year on public sector pay, and then, I suspect, he will be under pressure again, at this time next year when energy prices will still be high.

“I think that if he is tempted to continue investing in an economy where inflation is very high, it becomes a significant risk.”

Mike Brewer, chief economist at the Resolution Foundation, praised the government’s support package, but said that this year households will continue to experience a “tight contraction” in the cost of living.

“The biggest gains from yesterday’s package are wealthy retirees who may not need extra support but can still get £ 850, while low-income families with many children may feel harsh justice because their higher energy consumption is not reflected at a fixed rate. the amount of payments.

“Critically, as well as providing vital support to households this winter, the chancellor reaffirmed that he will continue what should be the biggest increase in payments in more than three decades if they are likely to grow by more than 9 percent next spring.

“This will provide strong protection for poor households from today’s high inflation.”

“Rough Justice”: Sunak’s support gives rich pensioners 850 pounds, and poor families lose

Source link “Rough Justice”: Sunak’s support gives rich pensioners 850 pounds, and poor families lose

Back to top button