London Daily

Focus on the big picture.
Tuesday, Jul 15, 2025

Sunak says inflation impact of cost of living help 'minimal' as he tells wealthy: let's give our £400 rebate to charity

Sunak says inflation impact of cost of living help 'minimal' as he tells wealthy: let's give our £400 rebate to charity

The chancellor defended a policy which will see all households receive help with their energy bills as well as targeting additional support to millions of the least well-off.

Rishi Sunak has said cost of living support delivering hundreds of pounds to every household will have a "minimal impact" on inflation - and suggested those who do not need it could give the money to charity.

The chancellor told Sky News that the announcement of new measures worth £15bn to ease the burden on squeezed households was "targeted at those most in need".

Under the plans, every home will see £400 knocked off their energy bills - an upgrade from a previous policy of loaning them £200 to be repaid over five years - while eight million of the most vulnerable will also receive £650.

Labour said it was wrong that someone owning more than one home could be receiving the government help multiple times.

Mr Sunak's support package comes at a time when inflation of 9%, a 40-year high, is squeezing households' spending power, largely thanks to soaring bills for gas and electricity - which are expected to rise by another £800 on average in the autumn.

The universal nature of the energy rebate will have the effect of helping some who do not need any assistance - and Mr Sunak suggested to Sky's Niall Paterson that "you, like me... can give that money to charity if you don't need it".

He added: "Our estimate in my view is that it will have a minimal impact on inflation."

Asked if it would lift inflation by one percentage point he said "much, much less than that".

"What we're doing is very targeted at those most in need. We're also raising money to help pay for it," Mr Sunak said.

"The combination of those two things is the responsible approach.

"Even though we are supporting the economy we want to make sure that we don't make the inflation situation worse."

Mr Sunak's support package is partly being paid for by a levy on oil and gas company bumper profits - which have soared due to rising prices - expected to raise £5bn over the next year.

The government had at first resisted such a proposal, which was being called for by Labour, on the grounds that it would deter investment and it attracted opprobrium from the Tory back benches when it was finally adopted by the chancellor.

Stand by people 'at time of need'


Jacob Rees-Mogg, the minister for Brexit opportunities and government efficiency, has told Sky News that there was "not a tax that you can take that is economically cost-free".

Mr Sunak defended his policy announcement from suggestions that it was not a Conservative measure.

"When we're dealing as a country with the type of challenge that we now face, with inflation running where it is, I think the right response from a compassionate Conservative government is, as we have done by the past two years, to stand by people at a time of need," he said.

The chancellor said that the most vulnerable would receive the most support but "with bills going up on this scale, everyone is going to feel the pinch - and that's why we wanted to make sure there was support available to everyone on a more universal basis".

He defended the use of the universal £400 energy discount as the best way to deliver help to "tens of millions" of people even though some would not need it.

An alternative method - rebates for council tax payers cutting out those on the highest bands - would still leave out some of those feeling the squeeze, he argued.

"There are lots of cases of people who will say 'Hang on, I happen to live in this expensive looking house or in a high council tax band house but I need help too'," Mr Sunak said.

He challenged critics to come up with a better policy.

"How else would you get the support to those on middle incomes who are working hard who do feel they need support - and I hear a lot from them every week?," the chancellor said.

"Just because they're not on benefits or they're not pensioners - they still actually think 'this is tough for me'... I do want to be on the side of those people."

Labour's shadow chancellor Rachel Reeves told Sky News that if the government had not spent months resisting a windfall tax, it "could have taken the time to get this package right".

"It is not right that if you own a second or a third home you should get this £400 payment multiple times," she said.

"This is only happening because this package has been rushed through."

Comments

Ken 3 year ago
Change your name to Brittimes so we know what to expect when we come here. Thanks in advance
Oh ya 3 year ago
What would be really cool is if Panatimes had news about Panama. I really dont care that much about the problems in the UK when there is news happening in Panama. But maybe its just me.

Newsletter

Related Articles

0:00
0:00
Close
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
×