Energy costs for UK homes will be reduced by hundreds of pounds this winter as part of a \u00a310 billion package to help consumers cope with rising prices.<\/p>\n\n\n\n
The government is scrapping a plan to pay consumers \u00a3200 off their bills starting in October, to be repaid over five years.<\/p>\n\n\n\n
Instead, it is understood that the amount will be increased, potentially doubled, and will not have to be repaid.<\/p>\n\n\n\n
One-time payments to select disadvantaged households and a further reduction in fuel VAT could also be announced.<\/p>\n\n\n\n
The assistance, which will be announced later by Chancellor Rishi Sunak, is expected to be largely funded by a windfall tax on oil and gas.<\/p>\n\n\n\n
Labour has consistently advocated for a windfall tax on energy companies that have achieved record profits, owing largely to Russia’s invasion of Ukraine.<\/p>\n\n\n\n
However, the government had previously opposed requests to apply the one-time charge, claiming that it would discourage energy corporations from investing in the UK.<\/p>\n\n\n\n
However, it is believed that the prime minister has now sided with Mr Sunak, who had advocated for the tax.<\/p>\n\n\n\n
Proposals to tax profits from other electricity producers, such as certain older wind farms and nuclear plants that have also received windfall gains, have been put on hold.<\/p>\n\n\n\n
Companies that expand their investment in the UK may be eligible for a tax break.<\/p>\n\n\n\n
According to the Treasury, the government understands “that people are struggling with increased prices,” and Mr Sunak has been “clear that as the situation evolves, so will our reaction.”<\/p>\n\n\n\n
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Energy costs for UK homes will be reduced by hundreds of pounds this winter as<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[216],"tags":[1112],"class_list":["post-17337","post","type-post","status-publish","format-standard","hentry","category-international","tag-energy"],"yoast_head":"\n