Campaign reply - With a few days to go until the spring Statement, please act

Thank you for contacting my office. I very much appreciate you getting in touch about the cost of living.

I understand anxiety over rising prices and inflation. I want to assure you that the Government will continue to listen and to ensure that the policies in place do help those who need it most.

I have made my ministerial colleagues aware of my constituents' concerns and I strongly welcome the range of measures put in place, including the new three-part plan to help households with their energy bills during this challenging period.

Several external factors have driven inflationary pressures: shortages created by the reanimation of the global economy; global energy price spikes brought on by the inability of supply to keep up with demand; and the Russian invasion of Ukraine. This has been particularly acute when it comes to the price of wholesale gas.

Since Ofgem’s price cap rise, the Government has put forward a three-part package to help both lower- and middle-income earners with the immediate adjustment. This includes a grant for energy bills for all, which the Chancellor has not only recently doubled to £400 (and has also announced that it will not need to be repaid). Further, a non-repayable £150 cash rebate is being provided for homes in Council Tax bands A-D, equivalent to 80 per cent of all households and £144 million of discretionary funding has been made available for local authorities to support those ineligible for the council tax rebate. This will mean that hard-working families will receive £550, with lower-income families receiving even more help.

In addition, £144 million of discretionary funding is being made available for local authorities to support households not eligible for the council tax rebate – including properties in bands A-D that are exempt from council tax, and households on lower incomes in higher bands. I also welcome the increase in the Warm Homes Discount to £150 while extending eligibility by a third to reach three million vulnerable households.

A rise in the National Living Wage will mean an extra £1,000 in the pockets of millions of people. The Government has also cut the Universal Credit (UC) taper rate and increased work allowances, an effective tax cut for low-income working households in receipt of UC worth £2.2 billion in 2022-23.

Furthermore, I welcome that the National Insurance personal threshold will rise further from £9,500 to £12,570 from July 2022. This will bring it in line with the equivalent Income Tax personal allowance and represents the largest increase in a personal tax threshold in British history, equivalent to a £6 billion tax cut for nearly 30 million workers and worth over £330 a year starting in July, across the entire UK. This represents the largest single personal tax cut in a decade.

I and my colleagues will continue to ensure the Government helps ordinary households across the country as our economy recovers from the shock of coronavirus.

I also welcome the Chancellor's announcement of new support to help those in receipt of certain benefits. Recipients of means-tested benefits such as Universal Credit and Pension Credit will be eligible to receive a £650 cost of living payment. Pensioners in receipt of the Winter Fuel Payment will receive an extra £300 this year to help them cover the rising cost of energy this winter. Those in receipt of disability benefits will receive £150 cost of living payments. I believe these will be paid from September.

Additionally, households will get £400 of support with their energy bills through an expansion of the Energy Bills Support Scheme, as well as £1.5 billion of support being made available through the Household Support Fund. In addition to the council tax rebate announced in the Spring Statement, the support is worth up to £1,500.

Once again, thank you for taking the time to write. If you require any further assistance, then please do not hesitate to get in touch.