THE CHANCELLOR has announced a windfall tax on oil and gas companies to tackle the cost of living crisis.
After repeatedly saying the suggestion was not a sensible idea, when it was called for from opposition politicians, Rishi Sunak has unveiled the new plans today.
He said the 25 per cent "temporary, targeted Energy Profits Levy" would be charged on oil and has companies' profits, and used to fund support for those struggling to pay their bills.
He said eight million households on the lowest incomes would be given a one-off payment of £650, pensioners would receive a £300 addition to their winter fuel payments and six million disabled people would be given a one-off payment of £150.
The previously-announced £200 energy bill rebate has also been doubled to £400, and the need to repay it over five years has been scrapped.
Mr Sunak said: "I trust the British people and I know they understand no government can solve every problem, particularly the complex and global challenge of inflation.
"But this Government will never stop trying to help people, to fix problems where we can, to do what is right, as we did throughout the pandemic.”
Labour's Shadow Chancellor Rachel Reeves accused Mr Sunak of not bringing in the changes fast enough, and said he had adopted Labour's suggestions.
She said: "After five months of being dragged kicking and screaming, the Chancellor has finally come to his senses, U-turned, and adopted Labour’s plan for a windfall tax on oil and gas producer profits to lower bills.
“Despite only bringing in the plan months ago, he’s had to ditch his dodgy buy now, pay later loan that was always destined for failure.
“There couldn’t be a more appropriate illustration of this Conservative government’s lacklustre, out of touch approach to managing our economy - arriving at the common sense solution months too late.
"And they still have no long term plan to grow our economy and pull us out of the mess they’ve got us into.
“Only Labour will tackle the cost of living crisis, grow our economy and make it stronger to protect it from shocks.”
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