Finance expert Martin Lewis has welcomed the government’s new package of support measures to tackle the cost of living crisis.
Rishi Sunak laid bare a £15 billion deal which specifically targeted those in the lowest income households, pensioners and people with disabilities.
Mr Lewis has been critical of the government’s fiscal response throughout the Covid pandemic and cost of living crisis, yet admitted he was “breathing a sigh of relief” after the announcement in the House of Commons.
He said it was “very close” to what he’s asked the chancellor for in a conversation on Monday in which he called for those who “have to choose between freezing and starving” be prioritised.
“I have to say this looks to be a relatively generous package from the government. I think they have listened, I would have liked to see it earlier but better late than never,” Mr Lewis said.
The long-awaited and much-needed package will see eight millions of the lowest-income households – those on Universal Credit, Tax Credits, Pension Credits and legacy tax – receive a payment of £650 that they will not need to repay.
In addition to this, separate one-off payments of £300 will go to pensioners, and £150 to those receiving disability benefits – a move Mr Lewis was “very pleased” to see after pushing for extra support for those with disabilities.
The government has also decided to revise the energy bills discount – a £200 loan to ease pressure of energy bills yet needed to be repaid – for a grant double the value.
All households, no matter the income, will receive a £400 discount in October which will not be required to pay back – a decision that Mr Lewis welcomed.
The moneysupermarket.com founder said: “When I spoke to [Mr Sunak], I said we had to prioritise those who had to choose between freezing and starving – and I think that’s absolutely right.
“When you’re talking about £1500-a-year bill increase, for those people, it’s an impact on lives, but for others it’s substantial impact on lifestyle.
“The loan-not-loan is gone, it’s exactly what I suggested, so I’m quite happy with that. It’s gone and it’s been replaced with a straight grant.”
The timing of Mr Sunak’s announcement had raised eyebrows with many accusing the chancellor of attempting to detract attention from the damning Sue Gray report into alleged parties in Downing Street throughout the Covid pandemic.
Yet Mr Lewis argued the publication of the findings actually brought the package forward as, per previous conversations, the announcements were likely to have come in July.
“It’s not a case the Sue Gray report has delayed this, if anything the Sue Gray report has brought this earlier,” he said.
Mr Lewis is set to interview the chancellor on Thursday evening following his announcement, where he will put forward questions to the chancellor live on Twitter.
It will be live-streamed on MoneySavingExpert.com from 5.15pm, and will also be available live via @MartinSLewis and @MoneySavingExp on Twitter, Martin Lewis and MoneySavingExpert on Facebook, and MoneySavingExpert on YouTube.
