Cost of living package – who will benefit?
In the last few months energy prices have soared at an exceptional rate resulting in rishi sunak announcing a cost-of-living package. This £15M package is to help bail out those in need, who are in crisis and struggling to live. But who exactly will receive this package and what makes you eligible?
Energy prices quadrupled since 2021
Who would have ever expected that sentence to be true? Sadly, it’s hit households on lower incomes the worst, leaving many unsure how to eat and pay bills. This has been the case for students up and down the UK, many of whom have struggled to hold onto rental properties and pay extortionate bills. Shockingly, the wholesale price of gas in January 2022 was almost four times higher than in early 2021. Therefore, an increase like this can only push those struggling, further into debt. This is where the cost of living package bailout hopes to support people across the UK alleviating this immense pressure.
How is the cost of living package divided?
Initially, every UK household was due to receive a £200 state loan. However, this has been turned into a state grant and doubled to £400
- It is estimated that this handout will cost the government a staggering additional £6billion
- Mr Sunak said eight million households on benefits will get a £650 handout, paid in two stages in July and autumn – which will cost the Treasury £5billion.
- Pensioners and disabled people will get £300 and £150 payments respectively, and he confirmed that the triple lock will be applied to the state pension this year.
- Every household in the UK will benefit from this, helping to improve the economic crisis everyone is feeling across the country.
Every household in the UK will benefit from this, helping to improve the economic crisis everyone is feeling across the country.