The plans will be announced as part of the government’s fiscal statement on Thursday
UK residents could be set to get a £1,100 boost to their bank accounts under Rishi Sunak’s plans for more cost of living payments.
The Prime Minister and Chancellor Jeremy Hunt are currently finalising the details of the fiscal statement, which will be announced on Thursday.
Under proposals, benefit claimants will get £650, while pensioners will get a further £300 and there will be an additional £150 disability payment to boot. A Government source said: “Rishi saw his cost of living plan work last time and so is sticking with it again”.
A Government source said: “Rishi Sunak saw his cost of living plan work last time and so is sticking with it again.”
During the budget, the Chancellor is also set to raise the National Living Wage to £10.40 as well as hiking pensions and benefits by 10.1 per cent with inflation, the Sun reports.
But Hunt is also expected to reduce the Energy Price Guarantee so the average family pays around £3,000 for bills – above the current £2,500 but less than Ofgem’s £4,000.
The cost of living aide is expected to be offset with spending cuts and tax rises to repair the damage made by Liz Truss and Kwasi Kwarteng’s apocalyptic mini budget.
The prime minister told BBC News: “The number one challenge we face is inflation. We’re not alone in that, actually, for example, Germany and Italy have inflation that is even higher than ours at the moment.
“And it’s important that we get a grip of that, it’s important that we limit the increase in mortgage rates that people are experiencing. And the best way to do that is to get a grip of our borrowing levels and have our debt on a sustainable basis falling.”
Eight million households currently get cost of living payments worth up to £650, but eligibility criteria could change under any new rules.
At the moment, you’re eligible if you claim Universal Credit, Job Seeker’s Allowance, Employment and Support Allowance, Income Support, Pension Credit, Child Tax Credit and Working Tax Credit.
Pensioners are also getting an extra £300 one-off payment from this month too.
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