At 12.30 p.m., Jeremy Hunt will present his fiscal plans to Parliament. Which include halting the planned increase in the quota and increasing child care assistance.
Jeremy Hunt’s first full budget extended the energy price cap for three months.
The Energy Price Guarantee (EPG) – which limits the unit cost of gas and electricity that people pay – was anticipated to increase to £3,000 next month, resulting in an additional increase in household bills.
However, just hours before the chancellor was scheduled to deliver his statement to the House of Commons, the Treasury confirmed the figure would remain at £2,500 until June, claiming the average household would save £160 on energy expenses as a result.
Prime Minister Rishi Sunak stated that the decision, which will cost £3 billion, will “bring peace to the people.”
Mr. Hunt added, “With energy bills set to decrease beginning in July. This temporary change will bridge the gap, alleviate the pressure on families, and help reduce inflation as well.”
However, the energy bills support scheme, which saw households receive approximately £66 off their monthly bills, will cease in March.
Labour’s shadow chief secretary to the Treasury, Pat McFadden, praised the news, saying his party had been requesting it.
He told, “I don’t mind if we lead as long as they do the right thing.” “I believe it’s important to do so because the cost-of-living crisis persists.”
People struggle to pay their costs, which were set to rise by £500 per year in a few weeks. So I believe it’s appropriate to extend the guarantee.
Stewart Hosie, the economy spokesman for the Scottish National Party, stated that the policies did not go far enough, labeling the chancellor “truly pitiful” for abandoning the energy bills support scheme.
“There is no justification for this disgraceful Tory decision, which will decimate household incomes and push even more families into poverty, hardship, and debt, given that energy companies are making record profits and the wholesale price of gas is falling,” he added.
This is the latest preview of Mr. Hunt’s budget, which will be revealed at 12.30 pm after Prime Minister’s Questions.
He will give one- and two-year-old parents 30 hours of free daycare per week for £4 billion to the Treasury. And boost funding for free three- and four-year-old daycare.
Plans are also being considered to alter staff-to-child ratios for two-year-olds, which could reduce the cost of childcare. However, some in the industry have cautioned against it, stating that it could compromise care quality.
The policies are consistent with what is anticipated to be the budget’s overarching theme: getting people back to work.
Mr. Hunt is anticipated to increase the lifetime allowance for pension savings from £1 million to £1.8 million – a record level – and could also increase the annual tax-free allowance for pensions from £40,000 to £60,000 to encourage professionals to remain in the workforce.
Changes could also be made to help the long-term ill, disabled, and welfare recipients return to work.
However, some of his backbenchers may be dissatisfied because the chancellor is not expected to satisfy Tory’s demands for tax cuts and will maintain the planned increase in corporation tax from 19p to 25p.
During his speech, the chancellor is expected to discuss the “difficult decisions” taken to stabilize the markets following the disastrous mini-budget during the brief tenure of Liz Truss last year – the event that led to his appointment to reverse policies and soothe the markets.
Mr. Hunt will say, “Today, we deliver the next phase of our plan: a budget for growth.”
“Not only prosperity from emerging from a recession. But long-term, sustainable, healthy growth that pays for our NHS and schools, creates decent jobs for young people. And provides a safety net for the elderly, all while making our nation one of the wealthiest in the world.”
