What Sunak can do to help with rocketing energy bills

Pressure is building on Rishi Sunak to announce financial support that will help people through the UK’s cost of living crisis.

- BEN CHAPMAN

The chancellor has resisted calls to increase benefit payments or give larger discounts off energy bills. He has signalled he will wait until the autumn Budget to offer tax cuts. But what are the options at his disposal?

VAT cut

The Liberal Democrats are backing a reduction in VAT on household energy bills from 5 per cent to zero. The move would cost around £2.5bn and save the average energy customer £90 a year. However, it would not be targeted at those most in need, with wealthier households also seeing a benefit.

Windfall tax

Labour is pushing the government to bring in a one-off tax on North Sea oil and gas producers, who are among those to have benefited from big increases in prices this year.