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Extra Universal Credit cash to double next year to combat soaring energy bills, research agencies demand

The EXTRA Universal Credit cash should double to match the soaring cost of living next year as families face soaring prices, a research organization has recommended.

Benefits and pensions are linked to inflation – but the numbers used are from last year before it starts to skyrocket.

Experts are recommending that pensions and pensions go up more to help Britons pay their bills

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Experts are recommending that pensions and pensions go up more to help Britons pay their billsCredit: Alamy

Most will increase 3.1% in April, but inflation is expected to soar to around 6%, meaning people will be more disadvantaged, according to the prestigious Institute for Fiscal Studies.

They called on ministers to increase benefits further to match rising rates – and help tackle the cost of living crisis.

On average it means 10 million Brits per UScredits niversal, other benefits and low income keep up to £300 extra.

Robert Joyce, Deputy Director of IFS today said: “The way we increase benefits every April is not consistent with the period of high and rising inflation we are facing.

“Growths are expected to grow 3.1% – the inflation rate of last September. But by April inflation will be around 6%.

“So the poorest are aiming for a 3 percent cut in their real benefits and standard of living every year.”

They conceded this would cost the Prime Minister at least £3bn more, but it would offset higher energy costs and should only be a temporary measure.

And it will be priced similarly to other options being considered by the Treasury at the moment.

BILLIONhis third class was suspended for a year to deal with average wages that will rise again after the pandemic.

Ministers are now looking at ways to help protect consumers from skyrocketing energy bills – which are expected to be hit the hardest.

Energy price cap expected to rise by hundreds of pounds in April to £2,000 a year, some experts fear.

Energy bills are expected to increase in the coming months

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Energy bills are expected to increase in the coming monthsCredit: Alamy

VAT relief or green tax relief are other options on the card to help people deal with huge bill increases.

But before then, Centrica boss Chris O’Shea warned that higher gas prices could last for years.

He said inflated prices probably won’t drop “anytime” and we are probably looking at problems in 18 months to two years.

A Government spokesman said last night: “We realize people are facing cost-of-living pressure which is why we are taking decisive action of 4.2 billion pounds to help.

This includes an increase in benefits in line with the inflation measure from September, an energy price cap that saves an average of £100 million per year for households and winter fuel payments, which are supporting more than 11 million retirees with their energy bills.

“Our £500m Household Support Fund is also providing low-income households with winter essentials.”

Martin Lewis almost broke down in tears after he couldn’t help his mom pay for his energy bills

https://www.thesun.co.uk/money/news-money/17300652/extra-universal-credit-cash-double-cost-of-living/ Extra Universal Credit cash to double next year to combat soaring energy bills, research agencies demand

JACLYN DIAZ

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