Rishi Sunak announces all households will get £400 off their energy bills

26 May 2022, 13:33

By Polly Foreman

Speaking in the House of Commons today, the Chancellor unveiled a £15bn cost-of-living package.

Rishi Sunak today announced a £15 billion cost-of-living package designed to help struggling families amid soaring prices.

As part of this package, the Chancellor of the Exchequer announced that all households will get £400 off their energy bills this autumn.

Households with the lowest incomes will also get a payment of £650 to help with the cost of living.

Mr Sunak said he had offered "significant support" for the whole UK.

The package will be partly funded through a 25 per cent windfall tax on oil and gas firms' profits, which have soared in recent weeks.

"We know that people are facing challenges with the cost of living and that is why today I'm stepping in with further support to help with rising energy bills," Mr Sunak said.

"We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I'm targeting this significant support to millions of the most vulnerable people in our society. I said we would stand by people and that is what this support does today."

The announcement comes after UK energy regulator Ofgem said earlier this week that the typical household energy bill was set to rise by £800 in October, which would bring it to £2,800 a year. Bills had already risen by an average of £700 in April.