I know how tightly many household budgets are stretched. The cost of heating a home, filling the car and doing the weekly shop adds up quickly.
That is why the Chancellor’s Budget last week focused on giving families some breathing space.
In January, eligible households in council tax bands A to D will receive a £100 payment towards energy costs. That covers around 44,650 properties in our towns and villages, roughly 95 per cent of local homes. If you pay your council tax by direct debit you don’t need to do anything, this will be paid directly into your bank account. Otherwise, the council will be in touch.
The Government has also extended the cut in VAT on household electricity to zero until July, taking around £50 off the annual energy price cap. That’s in addition to the roughly £150 in costs we permanently took off all bills this year and the £150 Warm Home Discount we’ve extended to about a third of all households in West Cumbria this winter, making sure the poorest get extra help. And, for pensioners, the Winter Fuel Allowance of up to £300 remains.
Fuel duty will be frozen again, with the 5p-per-litre cut extended to July too. The lower duty on red diesel will also continue, helping our farmers.
Looking ahead, Ofgem has been asked to abolish household gas standing charges, with costs moved into unit prices. This is expected to save around 60% of gas customers another £45 per year. And we’re committed to doing the same for electricity and removing further policy costs from your bills.
I have already heard understandable questions. What about a family in a band E home struggling just as much? Or a household that relies on heating oil or LPG rather than mains gas or electricity?
Last year, I and other local MPs secured a three year, £10 million Crisis & Resilience Fund for Cumberland Council. Earlier this year we got extra money to support households reliant on heating oil and LPG and in last week’s Budget we got more money to go into the pot next year. This discretionary funding can be accessed by those in need to help with the costs of housing, heating, food or other needs. I’d urge anyone who is struggling to reach out to the council or my office for help.
No single policy can reflect every household’s circumstances. But public money is not unlimited. The responsibility of government is to use it where it can do the most good, reaching as many people facing pressure as possible, without pretending that everyone’s costs can be met. These measures should offer a little bit of breathing space for the majority of people at a difficult time.
There is more to do. My job is to keep making West Cumbria’s case, while ensuring people feel the benefit of decisions made now.