Chancellor Announces Measures to Ease Cost-of-Living Crisis
Chancellor Rishi Sunak, has unveiled his long-awaited £15 billion cost-of-living package, which includes one-off payments for the most vulnerable and energy bill discounts for every UK household.
Energy bills are expected to hit an unprecedented £2,800 in October, according to the head of the energy regulator, Ofgem.
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And record-high petrol and diesel prices, as well as the fastest rise of the price of food in supermarkets for 13 years, are doing little to ease the financial burden. As the cost-of-living continues to surge, UK inflation has now hit 9%, which represents a new 40-year high.
What does the package cover?
Under the newly-announced package, every household in England, Scotland and Wales will get £400 off their energy bills from this October, spread over six months. Sunak said it has been tailored to help the most vulnerable and in-need households in particular, who could get up to £1,650 in support.
There is also the £150 council tax rebate for households living in band A to D properties.
Some people might also be entitled to the maximum amount of one-off payments that were announced by the Chancellor yesterday, on top of these measures.
The £1,650 worth of support is made up of:
- £400 for the energy discount
- £1,250 in one-off payments.
Anyone who claims means-tested benefits will receive £650, and those who claim disability benefits will get £150. Pensioners who currently get the Winter Fuel Payment will get £300.
How will this impact landlords and tenants?
In light of the financial crisis most households are facing at the moment, Generation Rent called for an eviction ban and freeze on rents, which are currently rising. So how can landlords protect both their tenants and their properties?
- Ensure you’re covered. Make sure that you have Rent Guarantee Insurance now. You cannot get it once your tenant stops paying the rent, so get it now, to cover yourself should your tenant struggle and be unable to make the rent
- Reconsider that rent increase. Do you really need to put the rent up? Sometimes, with other costs factored in, it’s unavoidable. But, if you have a great tenant that has always treated the property well and paid on time, consider working with them to find a rent they can afford and that covers your expenses. Long term, this will work out better than potentially pricing out a great tenant
- Track your expenses. Now is the time to be keeping a close eye on your income and outgoings, so use our free Expense Tracker to make sure you’re making the right financial decisions