{"id":21991,"date":"2022-06-08T11:21:13","date_gmt":"2022-06-08T11:21:13","guid":{"rendered":"https:\/\/smh.group\/?p=21991"},"modified":"2022-06-08T11:21:13","modified_gmt":"2022-06-08T11:21:13","slug":"the-chancellors-may-economy-statement-all-about-energy","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/","title":{"rendered":"The Chancellor\u2019s May economy statement: all about energy"},"content":{"rendered":"<p><strong>In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices.<\/strong><\/p>\n<h2><strong>Initial measures for 2022<\/strong><\/h2>\n<p>In early February 2022, the Chancellor announced a package of measures to reduce the impact of the \u00a3693 April 2022 increase in Ofgem\u2019s energy price cap. These were primarily:<\/p>\n<ul>\n<li>A \u00a3150 council tax rebate for those with properties in bands A\u2013D in England, with corresponding funding for Scotland, Wales and Northern Ireland under the Barnett formula;<\/li>\n<li>An Energy Bills Support Scheme to provide a \u00a3200 reduction in utility bills for the year starting in October 2022. This was effectively a loan, to be repaid by \u00a340 a year added to bills from April 2023. The scheme applied throughout the UK apart from Northern Ireland, which again received Barnett formula cash; and<\/li>\n<li>Extra discretionary funding of \u00a3500 million under the Household Support Fund for English councils to allow them to provide support for vulnerable people and individuals on low incomes, again with Barnett money for the UK\u2019s other constituents.<\/li>\n<\/ul>\n<p>The package, which has had problems with the distribution of the council tax rebates, had a value of about \u00a39 billion. However, with the suggestion from Ofgem that the October price cap will be around \u00a32,800 and inflation already running at 9%, February\u2019s measures looked increasingly inadequate under widespread criticism.<\/p>\n<h2><strong>A new helping hand<\/strong><\/h2>\n<p>After many rumours about windfall taxes and whether\/where they would be levied, on 26 May Rishi Sunak revealed a new round of cost of living measures, greater in scope than many had expected:<\/p>\n<ul>\n<li>The reduction provided under the Energy Bills Support Scheme will increase by \u00a3200 to \u00a3400 and turn into a grant, not a loan, i.e. there will be no clawback from future bills.<\/li>\n<li>Eight million households throughout the UK on means-tested benefits (e.g. Universal Credit. Working Tax Credit and Pension Credit) will receive a Cost of Living Payment of \u00a3650. This will be made in two directly paid instalments, one in July and the second in the autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments.<\/li>\n<li>Another eight million pensioner households eligible for the Winter Fuel Payment (WFP) will be paid a top-up \u00a3300 Pension Cost of Living Payment over November and December. Eligibility will be based on being over State Pension age (aged 66 or above) between 19\u201325 September 2022 and entitled to the WFP<\/li>\n<li>Six million people in the UK who receive disability benefits (e.g. Disability Living Allowance) will receive a one-off payment of \u00a3150 in September.<\/li>\n<li>The Household Support Fund will receive an additional \u00a3500 million for distribution by English councils, with corresponding funding for Scotland, Wales and Northern Ireland under the Barnett formula.<\/li>\n<li>These payments are not mutually exclusive so, for example, a low-income pensioner could receive a total of \u00a31,150 support (\u00a3200 + \u00a3650 + \u00a3300) in addition to the \u00a3350 (\u00a3150 + \u00a3200) from February\u2019s measures.<\/li>\n<\/ul>\n<h2><strong>Paying the bill<\/strong><\/h2>\n<p>The total cost of the package is put at \u00a315.3 billion. To help finance this there will be a new temporary Energy Profits Levy on oil and gas company profits of 25%, bringing the total tax rate payable by these companies to 65% and raising \u00a35 billion in its first year.<\/p>\n<p>The levy will be phased out if oil and gas prices return to \u201chistorically more normal levels\u201d and in any case will end by the start of 2026. To encourage oil and gas companies to invest, the Chancellor will introduce a new Investment Allowance that will mean total tax relief equivalent to 91.25% of new investment.<\/p>\n<p>The levy will not apply to electricity generators, but the Treasury will now urgently evaluate the scale of the extraordinary profits being made by generating companies and consider \u201cthe appropriate steps to take\u201d.<\/p>\n<p>One interesting non-energy nugget that emerged in the Chancellor\u2019s speech was that \u201c\u2026subject to the Secretary of State\u2019s review, benefits will be uprated by this September\u2019s CPI\u201d and \u201cSimilarly, the Triple Lock will apply for the state pension.\u201d That could mean rises of around 10% coming in from April 2023.<\/p>\n<p>If you need advice around your business finances our Sheffield based team of <a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/financial-services\/\"><span style=\"text-decoration: underline;\"><strong>Financial Advisers<\/strong><\/span><\/a> can help on <strong>0114 266 4432<\/strong> or <a href=\"mailto:info@smhca.co.uk\"><span style=\"text-decoration: underline;\"><strong>info@smhca.co.uk<\/strong><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices.<\/p>\n","protected":false},"author":4,"featured_media":21992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3,16],"tags":[890,593,919,191,77,656],"class_list":["post-21991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","category-financial-services","tag-cost-of-living","tag-economy","tag-economy-statement","tag-finance","tag-financial-planning","tag-money"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Chancellor\u2019s May economy statement: all about energy - Financial Advisers in Sheffield - SMH Group<\/title>\n<meta name=\"description\" content=\"In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Chancellor\u2019s May economy statement: all about energy - Financial Advisers in Sheffield - SMH Group\" \/>\n<meta property=\"og:description\" content=\"In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/\" \/>\n<meta property=\"og:site_name\" content=\"SMH Group\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-08T11:21:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png\" \/>\n\t<meta property=\"og:image:width\" content=\"774\" \/>\n\t<meta property=\"og:image:height\" content=\"554\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Brendan Hall\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brendan Hall\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/\"},\"author\":{\"name\":\"Brendan Hall\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"headline\":\"The Chancellor\u2019s May economy statement: all about energy\",\"datePublished\":\"2022-06-08T11:21:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/\"},\"wordCount\":685,\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png\",\"keywords\":[\"cost of living\",\"economy\",\"economy statement\",\"Finance\",\"financial planning\",\"money\"],\"articleSection\":[\"SMH Accounting &amp; Business Advisory\",\"SMH Financial Services\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/\",\"name\":\"The Chancellor\u2019s May economy statement: all about energy - Financial Advisers in Sheffield - SMH Group\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png\",\"datePublished\":\"2022-06-08T11:21:13+00:00\",\"author\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"description\":\"In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices.\",\"breadcrumb\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#primaryimage\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png\",\"contentUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png\",\"width\":774,\"height\":554},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Chancellor\u2019s May economy statement: all about energy\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\",\"name\":\"SMH Group\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\",\"name\":\"Brendan Hall\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"caption\":\"Brendan Hall\"},\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Chancellor\u2019s May economy statement: all about energy - Financial Advisers in Sheffield - SMH Group","description":"In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_GB","og_type":"article","og_title":"The Chancellor\u2019s May economy statement: all about energy - Financial Advisers in Sheffield - SMH Group","og_description":"In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices.","og_url":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/","og_site_name":"SMH Group","article_published_time":"2022-06-08T11:21:13+00:00","og_image":[{"width":774,"height":554,"url":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png","type":"image\/png"}],"author":"Brendan Hall","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Brendan Hall","Estimated reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#article","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/"},"author":{"name":"Brendan Hall","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"headline":"The Chancellor\u2019s May economy statement: all about energy","datePublished":"2022-06-08T11:21:13+00:00","mainEntityOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/"},"wordCount":685,"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#primaryimage"},"thumbnailUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png","keywords":["cost of living","economy","economy statement","Finance","financial planning","money"],"articleSection":["SMH Accounting &amp; Business Advisory","SMH Financial Services"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/","url":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/","name":"The Chancellor\u2019s May economy statement: all about energy - Financial Advisers in Sheffield - SMH Group","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website"},"primaryImageOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#primaryimage"},"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#primaryimage"},"thumbnailUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png","datePublished":"2022-06-08T11:21:13+00:00","author":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"description":"In late May, the Chancellor announced new measures to counter the rising cost of living, in particular energy prices.","breadcrumb":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#primaryimage","url":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png","contentUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2022\/06\/Price-cap.png","width":774,"height":554},{"@type":"BreadcrumbList","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/the-chancellors-may-economy-statement-all-about-energy\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/devstagesite.co.uk\/smhgroup\/"},{"@type":"ListItem","position":2,"name":"The Chancellor\u2019s May economy statement: all about energy"}]},{"@type":"WebSite","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website","url":"https:\/\/devstagesite.co.uk\/smhgroup\/","name":"SMH Group","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e","name":"Brendan Hall","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","caption":"Brendan Hall"},"url":"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/"}]}},"_links":{"self":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/21991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/comments?post=21991"}],"version-history":[{"count":1,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/21991\/revisions"}],"predecessor-version":[{"id":21993,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/21991\/revisions\/21993"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media\/21992"}],"wp:attachment":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media?parent=21991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/categories?post=21991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/tags?post=21991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}