Chancellor must deliver £400 energy bill rebate for all, says SNP

Wednesday, 22 November 2023 00:01

Proposed income tax cut won’t be enough to keep families warm this winter The snp has said the chancellor must deliver support for all this winter by bringing back the £400 energy rebate, saying an income tax reduction won’t go far enough for many. A 1p reduction in the income tax basic rate would only lead to a £200 average gain - half the amount of the energy rebate the snp is calling for. In order to receive the maximum benefit of...Request free trial

Proposed income tax cut won’t be enough to keep families warm this winter

The snp has said the chancellor must deliver support for all this winter by bringing back the £400 energy rebate, saying an income tax reduction won’t go far enough for many.

A 1p reduction in the income tax basic rate would only lead to a £200 average gain - half the amount of the energy rebate the snp is calling for. In order to receive the maximum benefit of £380, you would need to have an income of at least £50,270 - significantly higher than the average annual salary in scotland and the uk.

Energy bills are around double what they were in 2021, food bills have gone up by 30%, and according to the bank of england governor, interest rates are set to remain high for the foreseeable future, meaning many will continue to struggle with the cost of mortgages and rents.

The snp government is doing what it can to boost household incomes with the scottish child payment and by freezing council tax. The snp at westminster has urged the westminster government to follow scotland's lead with a package of cost of living support, including the energy rebate, mortgage interest tax relief, action to reduce food prices, increasing benefits in line with inflation, and devolving energy, employment, and welfare powers to the scottish parliament, so it can act where westminster has repeatedly failed.

Commenting, snp economy spokesperson drew hendry mp said:

“a cut to income tax won’t help the majority through the westminster cost of living crisis - that is why the chancellor must bring back the £400 energy bill rebate and scrap standing charges, to ensure families don’t have to choose between heating and eating this winter.

"energy bills, mortgages, rents and food prices remain sky-high and aren’t predicted to fall any time soon. The chancellor must follow scotland’s lead and deliver broad-based cost of living support that will give the majority of families immediate help.

"whilst the snp government is helping families in scotland with the council tax freeze and scottish child payment, the westminster government has hammered households with tory cuts, brexit and economic incompetence. Scotland urgently needs powers over energy, employment and the economy so scotland can act when westminster refuses.

"by repeatedly failing to act, westminster is showing why scotland needs the full powers of independence so we can grow our economy and boost incomes. Independent european countries like scotland are wealthier and fairer than the uk - so the question is: why not scotland?"

Ends

Notes for editors:

The coming tax reshuffle: winners and losers • resolution foundation

Price cap increases 2021 vs 2023: Https://www.Uswitch.Com/gas-electricity/guides/price-cap/

Standing charge increases 2021 vs 2023: Https://www.Ofgem.Gov.Uk/sites/default/files/2023-11/standing%20charges%20-%20call%20for%20input.Pdf