Average family will be £2,417 worse off this year as Brits face biggest fall in living standards on record
All homes will get a £200 discount on energy bills from October so they do not get stung by the higher price cap all at once.
“But what we can do is take the sting out of a significant price shock for millions of families, by making sure the increase in prices is smaller initially and spread over a longer period.” Referring to 1970s PM Harold Wilson, Mr Davis said: “It’s distinctly un-Conservative. It’s not just Labour lite, it’s Harold Wilson Labour lite.”
Senior Tory Tom Tugendhat, who has vowed to run if there is a leadership race, said: “April showers won’t be cheap.“People need control of their lives by having control of their wallets, that’s why lower taxes matter for every home.” But Mr Sunak insisted the NICs increase was needed to stop NHS waiting lists spiralling.
“The Bank expects households to experience the largest annual squeeze in living standards on record this year.Bank boss Mr Bailey said a “moderation” of wage rises was needed to stop inflation rising.Five tips to deal with crunchTashema Jackson, of energyhelpline.com, says: “The best option is to sit tight. Your supplier’s standard tariff is likely to be the cheapest option because it is protected by the cap.