• Liz Truss Energy, Tax Plan ‘Will Give Richest Families 2x As Much Support’ (G.)
Liz Truss’s plans for an energy price freeze and sweeping tax cuts will give Britain’s richest households twice as much financial support with living costs as the poorest households, according to a leading thinktank. The Resolution Foundation said the prime minister’s energy package, announced hours before news of the death of the Queen last week, would come with a “colossal” price tag for taxpayers that was poorly targeted to help those most in need when combined with tax cuts promised in her leadership campaign. It said the richest tenth of UK households would receive £4,700 in support, on average, from the government’s “energy price guarantee” and cuts to national insurance – far in excess of the £2,200 support for a typical household in the poorest tenth.
The intervention comes as details of the new prime minister’s plan to support struggling households remain unclear, after she chose to hold back from publishing the costings for her proposal until a mini-budget, expected to take place next week. The Resolution Foundation said the plan to limit an increase in the cost of a typical household energy bill to £2,500 for two years from October would cost about £120bn. It warned that Truss’s plan to avoid a fresh windfall tax on energy producers would mean heaping the cost on taxpayers, with as little as £1 in every £12 spent on energy support for households recouped directly from higher taxes on energy firms.
