The Chancellor of the Exchequer, Nadhim Zahawi, has stated that alternatives to provide further aid to individuals to alleviate the cost of living pressures will be “ready to go” on 5 September, but that the next prime minister will be responsible for making choices on the topic.
Rishi Sunak, a candidate for the leadership of the Conservative Party, announced on Thursday a plan to reduce energy costs for up to 16 million vulnerable individuals, which he says will catapult him to Downing Street.
Mr. Zahawi told that any of the two candidates for the Conservative leadership, Liz Truss or Rishi Sunak, will be able to “strike the ground running” if elected.
However, he claimed that the outgoing prime minister, Boris Johnson, will not announce a new program to combat rising living costs while he remains in office.
“My message to families today is that these options will be available,” said Mr. Zahawi.
Yesterday, I met with the industry to discuss what more can be done about direct debit and prepayment meters, as well as all the other concerns of families.
“We are ensuring that the job is completed so that the next prime minister can hit the ground running on September 5 and get these things in place.”
When asked if additional direct handouts to families are unavoidable this winter, Mr. Zahawi responded, “We’re looking at all the alternatives for what additional help we can provide to families to get them through the winter – £37bn, we’re in the middle of delivering it.”
Thursday, Mr. Johnson reiterated his stance that it is the responsibility of the next prime minister to make budgetary decisions after discussions with energy executives yielded no fresh steps to alleviate the cost of living crisis.
However, the prime minister stated after the meeting that he will continue to urge the energy sector to alleviate the financial burdens of poor households.
Energy specialists forecast that the average monthly energy cost will reach roughly £3,500 in October and exceed £4,200 in January.
Unless the government intervenes, energy expenses are projected to exceed two months of typical take-home pay next year, according to a new analysis.
The replacement for Mr. Johnson will not be disclosed until September 5.
Mr. Sunak, a candidate for the leadership of the Conservatives, revealed a plan to reduce energy costs for up to 16 million vulnerable individuals last night in the hopes that it could catapult him to Downing Street.
In a stunning move as his leadership dispute with Liz Truss escalates, he is rumored to be willing to find up to £10 billion to reduce costs for poorer households.
In a shot at his opponent, the former chancellor wrote in The Times, “Despite the ‘optimistic’ rhetoric of others, you cannot heat your home with optimism.”
According to The Times, Mr. Sunak acknowledges that his plan to reduce the VAT on energy bills would cost $5 billion, and he would now find an additional $5 billion to assist those most vulnerable to price increases.
In the most recent leadership debate in Cheltenham, Ms. Truss rejected the idea of levying a windfall tax on energy companies as a way for the government to acquire additional funds if energy costs continue to climb.
Sir Ed Davey, leader of the Liberal Democrats, described as “appalling” the lack of additional help for families and retirees following Thursday’s meeting with industry leaders.
In addition, Labour has accused the administration of being “inactive.”
“Families are concerned about their ability to pay their bills. Instead of demonstrating leadership, however, the Conservatives remain inactive, according to Ed Miliband, shadow secretary of state for climate change and net zero.
“The prime minister and chancellor have absconded, and the candidates for the leadership have no meaningful ideas on how to assist working people in meeting the issues they face.”
Sir Keir Starmer, the leader of the Labour Party, will visit Edinburgh on Friday, when he is anticipated to speak about some of the party’s measures to assist individuals with rising energy costs, before a broader announcement next week.
The party has announced a prepayment meter proposal that, according to the party, would bring prepayment energy rates in line with those of direct debit users and provide relief to about four million homes.
Sir Keir has been criticized in recent weeks for taking a vacation during a national crisis, with former Labour leader Gordon Brown making three speeches outlining the steps he would take to alleviate the cost of the living situation while Sir Keir was gone.
However, Labour’s shadow business secretary Jonathan Reynolds emphasized that the party “has a very clear plan” that includes a windfall tax on oil and gas companies.
Work and Pensions Secretary Therese Coffey, who supports Liz Truss in the present Tory leadership competition, stated that “all options would be investigated” in response to a question about whether the government is considering granting assistance to those hardest hit by growing living costs.
