Whoever moves into Downing Street this week will have their
electricity and gas subsidised by the taxpayer, the Labour Party
has revealed
As the Tory leadership contest draws to a close, yesterday faced widespread criticism over her inability
to give details of plans to stop bills rising this winter,
causing misery to people across the country.
But Truss’ own household won’t face the same concerns thanks to
Treasury rules that ensure the incoming Prime Minister won’t pay
for their own heating, electricity, water or other expenses
relating to the use of Downing Street.
The free heating and electricity they will receive is treated by
HMRC as a perk of employment, or a ‘benefit in kind’. The only
cost they will face is tax on that perk.
But in a further boost to the Prime Minister, the value that HMRC
can put on the perk is capped at 10 per cent of their salary - no
matter how high her energy bills rise or how high the price cap
rises.
The incoming Prime Minister’s salary for the rest of the year is
likely to be £44,006, meaning the value of the benefit in kind
will be capped at £4,400. At a marginal rate of 45 per cent, the
cost to the Prime Minister of enjoying unlimited free heating and
electricity in Downing Street this winter is likely to be capped
at £1,980.
In a full year, the maximum amount of tax they would have to pay
in return for receiving free gas and electricity is around £3,400
each year: regardless of how high the energy price cap rises.
, Labour’s Shadow
Exchequer Secretary to the Treasury, said:
“While Truss may be able to rest easy knowing her energy bills
won’t be soaring, the least she could do is offer the millions of
families reassurance and clarity on what her plans are.
“Instead she has left people deeply anxious, worrying about
making ends meet as the energy crisis escalates and only offering
vague promises and lukewarm words.
“Families deserve a government ready to act and meet the scale of
this national emergency. With Labour’s plan to freeze energy
prices, households won’t pay a penny more this winter and we’ll
be able to get a grip on this crisis.”
Ends
Notes to editors:
