I am delighted that the Chancellor has today announced further support to help address the pressures on household budgets. To directly tackle the large increases we have seen in fuel prices, the Chancellor announced a 5p per litre reduction in fuel tax until March next year, which will come into effect from 6pm tonight. The Chancellor also revealed the threshold at which people begin to pay National Insurance will be raised by £3000, bringing it in line with the Income Tax threshold, benefiting 30 million people across the country.
The Government will also provide a further £500 million for the Household Support Fund, doubling the amount already provided to local authorities to support those in the greatest need. And to help those wishing to reduce bills and protect the environment, the Chancellor has also simplified VAT rules regarding energy efficient products, so people will pay no VAT on items such as new solar panels or heat pumps for the next 5 years.
These new measures are in addition to the energy bill rebate announced last month, the reduction in the taper rate for Universal Credit and the 6.6% increase in the National Minimum Wage which comes into effect next Friday.
Balancing the need to support those struggling with rising costs with the difficult economic situation we face nationally following the pandemic is an incredibly difficult and complex task. I am delighted the Government have been able to respond to the widespread concerns raised and provide this additional support which will ease the burden for those most affected by recent price rises.
