Business

Families will lose more than £150 this Christmas and face another £700 in their wallets this spring, Labor warns

The FAMILIES face a £150 hit in their wallets by Christmas this year and a £700 loss in the spring, Boris Johnson has been warned.

Prime Minister under pressure tax reduction for hardworking Britons struggling with a cost of living crisis.

Families face £150 in their wallets this year

2

Families face £150 in their wallets this yearCredit: Alamy
Rachel Reeves is calling on ministers to scrap VAT on heating bills

2

Rachel Reeves is calling on ministers to scrap VAT on heating billsCredit: Alamy

Labor today stepped up calls for ministers to scrap VAT on heating bills during the winter months to ease tensions.

Party analysis of Bank of England and ONS statistics shows the average family will lose £148 this holiday season compared to normal.

While households spent £3,282 last December, this will rise to £3,430 this year, they said.

But the real sting will come in the spring when Britons face a double rise in National Insurance payments and cap energy prices – while a personal pension income tax freeze also started.

Labor said someone on a salary of £30,000 a year has to pay £330 more due to the freeze and 1.25% NIC increase.

From April, Rishi Sunak is increase NIC to pass the growing health and social care bill.

And a 30 per cent increase in the energy price cap is expected to add £383 to bills – a total of £700 off them.

Shadow Chancellor Rachel Reeves told The Sun: “Right now, people are being impacted by the cost of living crisis which has caused energy bills to rise, food costs to rise and weekly budgets stretched.

“That’s why Labor is calling on the government to immediately eliminate VAT on household heating bills during the winter months.

“Aside from the biggest tax burden in 70 years, the complacency of the Conservatives is costing us high taxes, low growth cycles, making the cost of living crisis worse and cost those who are working.”

Both Mr Johnson and Mr Sunak have indicated an intention to cut taxes before the next election.

In the October Budget, the Prime Minister cut General Credit the rate falls by 8%, allowing poorer families to keep around £1,000 more a year after the end of the £20-a-week increase.

A Government spokesman said: “We know people are facing cost-of-living pressure which is why we are taking action worth more than £4.2 billion. to help them.

This includes targeted support for the most vulnerable and low-income households during the winter months with the Warm Home Discount Program, Winter Fuel Payments, Cold Weather Payments and Household Support Fund.

“Domestic bills, such as gas and electricity, are already subject to a reduced VAT rate of 5% and our Energy Price Cap will remain in place.”

Rachel Reeves pledges £28 billion annual climate change fund according to Labor

https://www.thesun.co.uk/money/17017389/families-will-be-150-worse-off-this-christmas/ Families will lose more than £150 this Christmas and face another £700 in their wallets this spring, Labor warns

Bobby Allyn

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@ustimetoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button