Local MP Fay Jones has welcomed the Chancellor’s recent announcement on tackling the rising cost of household bills.
With energy prices increasing following pressures on the global supply chain, Ms Jones has been lobbying the Chancellor on behalf of Brecon and Radnorshire constituents but particularly those who live off the gas grid – around two thirds of those who live in Brecon and Radnorshire – who are not protected from the energy price cap.
The best way to tackle the cost of living is to keep people in well-paid jobs and so it is hugely to be welcomed that peak unemployment is now forecast to be 2 million fewer than previously feared. Indeed, there are more people in work now that at the beginning of the pandemic. But it would be wrong to pretend that the Government can wave a magic wand and remove the upcoming squeeze on household budgets.
On 3rd February, the Chancellor announced a package of measures designed to help alleviate that pressure:
- All domestic electricity customers will get £200 off their energy bills from October, with 80% of households receiving a £150 Council Tax rebate from April.
This package will support hard working families. The Energy Bills Rebate will provide around 28 million households with an upfront discount on their bills worth £200. Energy suppliers will apply the discount to domestic electricity customers from October, with the Government meeting the costs. The discount will then be automatically recovered from people’s bills in equal £40 instalments over the next five years. This will begin from 2023, when global wholesale gas prices are expected to come down.
Households in England, which are in council tax bands A-D, will also receive a £150 rebate. It now remains to be seen whether the Welsh Government will pass the funding generated from this announcement (around £175 million) on to Welsh local authorities.
Ms Jones said
“The cost of living is hitting hard in Brecon and Radnorshire and so I am grateful that the Chancellor is acting fast once again to stand with ordinary working families.
It is crucial that we now pass this funding on to local authorities. For years, Powys has received an inadequate funding settlement meaning that our council tax is higher and our services have been stretched. The Welsh Government now has an additional £175 million to help those who are struggling to pay their fuel bills – they need to get this money out of the door now.”