Tory leadership race: Rishi Sunak unveils plan to slash energy bills for millions during cost of living crisis

In a dramatic move as the cost of living crisis becomes the overwhelming issue in the leadership campaign, the former chancellor is said to be prepared to find up to £10bn to cut bills for poorer households.

Sunak pledges direct support on energy bills

Rishi Sunak has unveiled a plan to slash rising energy bills for up to 16 million vulnerable people which he hopes will propel him to 10 Downing Street.

In a dramatic move as his Tory leadership clash with Liz Truss becomes increasingly bitter, he is said to be prepared to find up to £10bn to cut bills for poorer households.

And in a swipe at his opponent, the former chancellor declared in an article in The Times: “Whatever the ‘boosterish’ talk of others, you can’t heat your home with hope.”

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As the cost of living crisis becomes the overwhelming issue in the leadership campaign, Mr Sunak wrote: “People need reassurance now about what we will do, and I make no apology for concentrating on what matters most.”

But Mr Sunak’s latest cost of living plan will be attacked by Ms Truss’s supporters as another U-turn and with many party members having voted already in the leadership poll it may have come too late to save him from defeat.

According to The Times, Mr Sunak accepts that his plan to cut VAT on energy bills would cost £5bn, and he would now also find up to £5bn more to help those most vulnerable to rising prices.

He also predicted that as energy prices continue to rise the government would have to raise more money from a windfall tax on energy companies, a move rejected by Ms Truss at the latest leadership hustings in Cheltenham.

Benefits systems is ‘quickest’ way to support people

In his article, Mr Sunak said he would offer specific support to pensioners and those on benefits as they “simply cannot increase their incomes to meet their energy costs and are the most vulnerable in society”.

He said universal credit, winter fuel payments and similar routes would be used to top up their incomes, with the goal of ensuring they were no worse off as a result of rising bills.

Mr Sunak’s team claims that until Ofgem announces the exact level of the price cap later this month, he cannot not promise that he would cover the entire cost of the rise for the most vulnerable groups.

But it was emphasised that it was his intention to cover “as much of the hole as possible”, with households already likely to be £400 to 500 worse off than predicted in May.

Source: https://news.sky.com/story/tory-leadership-race-rishi-sunak-unveils-plans-to-slash-energy-bills-for-millions-during-cost-of-living-crisis-12670910