Pressures created by global events including the rise in wholesale gas prices, Putin’s invasion of Ukraine and the Covid-19 pandemic are causing strain on the cost of living.
That is why we are delivering the biggest net cut to personal taxes in over a quarter of a century – boosting the National Living Wage to £9.50 an hour and doubling our Household Support Fund to £1 billion and launching our £9.1 billion package to help families with their energy bills.
This will help to ease the pressures on households and help manage day to day costs.
£150 Council Tax Rebate:
- We are delivering a non-repayable £150 council tax rebate to households across England from April, with funding for similar schemes in Scotland, Wales and Northern Ireland.
- Where council tax is paid by direct debit, households will automatically receive the £150 rebate in April 2022. Where households are eligible for the council tax rebate, a single payment of £150 will be paid to those who pay their council tax by direct debit – including where multiple residents are jointly and severally liable for council tax.
- Where council tax is not paid by direct debit, councils are required to contact households as early as possible. Councils will contact households who do not pay their council tax by direct debit to make them aware of the scheme and invite them to make a claim.
- We are also providing funding to Scotland, Wales, and Northern Ireland to allow devolved powers to implement their own council rebate, ensuring that support reaches every corner of the UK. Council tax is a devolved matter, but we are providing £565 million in Barnett funding to Scotland, Wales, and Northern Ireland.
- £144 million of discretionary funding is also available to support households who are in need but are not eligible for the council tax rebate, known as the Discretionary Fund.
- Full guidance on how to implement the rebate – including about funding available for the rebate – is available here: https://www.craigwhittaker.org.uk/news/faqs-council-tax-rebate
£140 Warm Home Discount:
- You are eligible for our Warm Home Discount if you get the Guarantee Credit element of Pension Credit or you’re on a low income. If you get the Guarantee Credit element of Pension Credit – known as the ‘core group’ or you’re on a low income and meet your energy supplier’s criteria for the scheme – known as the ‘broader group’ you could get £140 off your electricity bill. How you apply for the Warm Home Discount Scheme depends on how you qualify for the discount. For more information on WHD's, click here: https://www.gov.uk/the-warm-home-discount-scheme
Winter Fuel Payment of between £100 to £300:
- You are automatically eligible for our Winter Fuel Payment if you are a recipient of the State Pension or get enough society security benefit. If you were born on or before 26 September 1955 you could get between £100 and £300 to help you pay your heating bills. For more information on Winter Fuel Payment, click here: https://www.gov.uk/winter-fuel-payment
£1 billion Household Support Fund:
- You can apply for our Household Support Fund, to help the most vulnerable families, via Calderdale council’s website. We know that local authorities are best placed to know who needs the most support in their communities, that is why local authorities oversee the distribution of funding.
Helping boost pay and cutting tax – with these measures delivered through the economy:
- Boosting our National Living Wage by 6.6 per cent to £9.50 an hour from April, meaning an extra £1,000 a year for a full-time worker.
- Cutting fuel duty by 5 pence for 12 months, delivering a £5 billion tax cut for drivers alongside the freeze in fuel duty for the twelfth year in a row.6
- Cutting National Insurance now, delivering a £6 billion tax cut for 30 million working people across the UK from July, worth over £330 a year, meaning 70 per cent of people will pay less tax even after the levy.
- Using our Plan for Jobs to help people earn more and gain the skills our economy needs, through our £2 billion Kickstart Scheme; £2.9 billion Restart Scheme; and our Lifetime Skills Guarantee, we are helping people into work. And our new Way to Work campaign is helping to fill the almost 1.3 million vacancies in our economy.
- Delivering a £1,000 effective tax cut for nearly 2 million families, through our cut to the Universal Credit taper and increase to work allowances.
- Cutting the basic rate of Income Tax to 19p from 2024, delivering a £5 billion tax cut for over 30 million workers, savers and pensioners, the first income tax cut for 16 years.