The Resolution Foundation said the Prime Minister’s energy package, announced hours before news of the Queen’s death last week, would come with a “colossal” price tag on taxpayers, which had not been targeted to help those were more in need, combined with promised tax cuts. in her leadership campaign. It said the richest tenth of UK households would receive £4,700 in support, on average, from the government’s “energy price guarantee” and cuts to national insurance – far more than the £2,200 support for a typical household in the poorest tenth . The intervention comes as details of the new prime minister’s plan to support struggling households remain unclear, after she chose not to release the cost of her proposal until a mini-budget, due next week. The Resolution Foundation said the plan to cap the rise in the cost of a typical household energy bill at £2,500 for two years from October would cost around £120bn. He warned that Truss’ plan to avoid a new windfall tax on energy producers would mean the cost to taxpayers, with just £1 in every £12 spent on household energy support being recovered directly from higher energy taxes businesses. The thinktank said the average level of support for households would reach £2,000 this year due to the energy price guarantee, as well as financial support for all households and additional one-off payments for those receiving means-tested benefits. Overall, it said it provided a similar level of support for rich and poor households. However, wealthier households will benefit significantly more next year from plans to reverse national insurance tax rises implemented in April. Alongside general support from the energy price freeze, which would benefit households with the highest gas and electricity bills, he said this would “distort support towards the highest income households”. Torsten Bell, chief executive of the Resolution Foundation, said: “Last week, the Prime Minister announced a simply colossal energy support package to prevent a disaster in living standards this winter. “The support has been big, bold and – together with announcements earlier this year – amounts to over £2,200 for every household in Britain. Even so, families should expect a tough winter ahead, with wealthier households receiving twice as much cost-of-living support as poorer households next year. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. “The energy price guarantee was absolutely the right thing to do in terms of providing support where needed. But barring any attempt to fund it through further tax windfalls, the welcome support today could have a nasty sting in terms of higher mortgage payments and higher taxes tomorrow.”
