Boris Johnson’s administration will levy a windfall tax on oil and gas earnings, caving in to rising pressure to help Britons experiencing a historic squeeze on living standards.
The 25% energy levy would earn around £5 billion ($6.3 billion) to fund one-time awards of £650 to more than 8 million of the UK’s poorest households, Chancellor of the Exchequer Rishi Sunak said in the House of Commons on Thursday. Sunak would not exclude out levying a similar fee on electricity generators, but said additional research was needed.
Around 8 million retirees would get £300 payments, while energy expenses for every home in the UK will be subsidised by £400, replacing a prior proposal for £200 loans. Sunak stated that the package is worth £15 billion in total, increasing total aid introduced to £37 billion.
“We recognise that homes are suffering right now,” Sunak remarked. “Fiscal assistance should be targeted, quick, and brief.”