Cost of living crisis: Britons on £45,000 will need help paying energy bills – not just those on benefits, chancellor says | UK News

Britons on a salary of £45,000 will need government help to pay their energy bills – not just the beneficiaries, the prime minister has warned.

Nadhim Zahawi also told The Daily Telegraph that households must try to reduce their energy consumption and he is concerned gas prices could continue to rise for another two years.

Millions of households will see their energy bills skyrocket in the autumn after the price cap rises to £3,549 a year – a record 80 per cent increase.

While every UK household is getting a £400 discount on their energy bill, Conservative Party leadership candidates Liz Truss and Rishi Sunak are being urged to take further action.

But there has been debate over whether additional support should be widely distributed or focused on the lowest-income Britons.

Mr Zahawi told the newspaper: “My concern is that there are people who are not entitled to benefits. If you are a senior nurse or a senior teacher with a salary of £45,000 a year, you will have to pay the energy bill. volume to 80% and will be able to go even higher in the new year – it’s really hard.”

While he said Universal Credit is a “really effective way of targeting,” he said other ideas are being explored “to make sure we’re helping those who really need it.” “.

Mr Zahawi is said to have presented a range of options for the next prime minister to consider – and despite calls for urgent action from industry regulator Ofgem, Ms Truss said it would not be “right” to announce Her full plan to tackle the cost of the crisis lives on until a new Conservative leader is named on September 5.

The Prime Minister went on to warn that the UK is “in a state of national economic emergency”, adding: “This could happen in 18 months, two years, if Putin continues to use energy. quantity as a weapon.”

Read more:
Explainer: Everything you need to know about higher bills
Analysis: Even those who did the right thing will not escape the impact of rising energy bills

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How will energy prices affect households?

Businesses fear rising energy bills

Elsewhere, 26% of SMEs polled by YouGov have warned that their energy bills will not be sustainable within 12 months.

And of the companies that paid more for gas and electricity, 75% said they would have to pass these costs on to their customers.

Furthermore, 5% of total businesses said that their current energy bill could not be paid.

Mr Zahawi told The Telegraph the government was planning to provide support to small companies and said there would be a “longer-term scaring effect on the economy” without it.

Proposals could include cutting VAT for specific sectors – reverting to a policy in effect during the coronavirus pandemic.

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Why high energy bills affect everything

Politicians feel the heat

In total, about 24 million households will be affected by the price spike.

Soaring wholesale gas costs – fueled by Russia’s invasion of Ukraine – have spurred an increase in the energy price ceiling, which is expected to soar even more next year, according to analysts. Average bills are forecast to hit £5,386 in January and £6,616 in April, according to analysts. Details about Cornwall.

It adds to the pressure on households already struggling with rising food and fuel prices.

Sky News found a third of households are struggling to pay their energy billswhile Philippe Commaret, chief executive of energy giant EDF, said half of UK households could fall into fuel poverty by January.

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Ofgem chief executive Jonathan Brearley told Sky News the price cap would be “devastating news” for many.

Putting the increase into context, he added: “When I look at winter prices now for gas, they’re 15 times higher than normal. If that happens to gasoline, that means it’s going to be going. costs £400 to £500 to fill our car.”

Boris Johnson emphasized that he would leave important decisions about additional support to his successor.

Before the rise, the leader Liz Truss said she would use emergency budget to “ensure support is on its way” should she become prime minister.

Her opponent Rishi Sunak has committed to more targeted support and the removal of VAT from energy bills.

Labor has claimed that Ms Truss’ plan to combat the cost of living crisis would leave four million families “cold to death” if further direct assistance were rolled out only to beneficiaries.

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