Treasury package falls short of support needed for Tory cost of living crisis

Amy Callaghan MP has called on the UK Government to do more to help constituents tackle the cost-of-living crisis.

The comments come following the recent Treasury announcement of measures aimed at tackling energy price cap rises.

The Chief Executive of Ofgem recently warned that the UK’s energy price cap is expected to rise in October to around £2,800 – up from £1,971. It is estimated that some 12 million households in the UK could be facing fuel poverty over the course of the year.  Responding to the Treasury's announcement setting out measures to tackle the Tory-made cost of living crisis, the East Dunbartonshire MP said: "Despite the grim warnings from Ofgem and others in the industry, the Tory Government has been content to sit on its hands – with more focus being given to save their law-breaking Prime Minister than supporting families in need. "It is devastating that we are in a position where households are already suffering from higher energy bills and food prices.  This UK government's inaction has forced too many people to turn to food banks, unable to both heat their home and feed their family. 

"It's no secret that the Prime Minister and Chancellor have cobbled together this half-baked plan in an attempt to distract from the scandals dominating Downing Street.

"While some of the measures announced are welcome, such as the Chancellor heeding the SNP’s calls to turn his energy loan into a grant, it is clear that this announcement still falls desperately short of what is needed at this critical time.  

"The Chancellor is sitting on an estimated £30 billion of fiscal headroom but has only chosen to spend around £15 billion. While people are sitting in cold houses and turning to food banks, Rishi Sunak is sitting on £15 billion as an election war chest.

"At the very minimum, the UK Government must commit to scrapping the regressive National Insurance tax hike, reversing the £1040 cut to Universal Credit, introducing a windfall tax on all companies which are benefiting from excessive profits, introducing a Real Living Wage to boost incomes, a temporary suspension of VAT on household energy bills, and follow the Scottish Government’s 6% uprating of benefits."

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