Cost of living: Help is coming, says Kwasi Kwarteng

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Households struggling with the rising cost of living in the UK will receive some help this winter, Business Secretary Kwasi Kwarteng has said.

The cabinet minister, who is a key ally of Tory leadership hopeful Liz Truss, claimed the Treasury was "working on options for the new prime minister".

But he fell short of outlining how the government intends to support people.

Since declaring his support of Ms Truss, Mr Kwarteng has been linked to the chancellor position.

Writing in the Mail on Sunday, he said he understood the "deep anxiety" price rises were causing, and acknowledged the "millions of families [who] will be concerned about how they are going make ends meet".

"But I want to reassure the British people that help is coming," Mr Kwarteng wrote.

He went on to insist that Ms Truss "will do all she can to help households across Britain" if selected to become party leader and prime minister.

He insisted Ms Truss' pledges to reverse an increase to National Insurance and introduce a temporary moratorium on energy levies were examples of her willingness to "look at what more can be done".

The cost-of-living crisis has been driven by a series of issues, including inflation outstripping wage increases and record energy bills due to a surge in wholesale gas prices.

A new price cap - determining the maximum suppliers can charge customers for energy usage in England, Scotland and Wales - is due to be announced at the end of this month.

It will come into effect in October - and customers have been warned to expect annual bills to reach more than £3,500.

Energy consultancy Auxilione used Friday's gas prices to suggest typical household energy bills in the UK could hit as much as £6,000 a year next April.

Mr Kwarteng gave no detail about the government's apparent plans to help households and businesses with soaring prices. Instead, he said this would be made clear when the new prime minister takes office.

As one of Ms Truss' earliest backers, it is widely thought Mr Kwarteng will be handed one of the more senior cabinet positions, should she win.

Reports have suggested he could become the next chancellor, but Ms Truss' campaign team insist no decisions have been made yet.

The leadership race between Ms Truss and former chancellor Rishi Sunak will conclude on 5 September, with a winner announced and their top teams to follow soon after.

At that point, the UK's new leader will have the "full information and analysis" to work up the "best package measures that will help deal with" cost of living issues, Mr Kwarteng wrote.

He said energy independence will be key for Ms Truss, promising more nuclear power stations, offshore wind and a lifting of the ban on fracking in areas where there is local consent.

Mr Kwarteng, an opponent of windfall taxes, added: "Rather than slapping a punitive windfall tax, as Rishi Sunak has done, we need to incentivise investment in domestic oil and gas for our own energy security.

"I appreciate windfall taxes are sometimes popular. But popularity won't keep the lights on."

Labour has pledged to extend the oil and gas windfall tax to fund a freeze to the energy price cap at its current level of £1,971 for six months.

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    • 11 August
    • 3 days ago
    • 11 August

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