Energy bills rebate loophole means second home owners could get £400 ‘multiple times’ | Personal Finance | Finance
On BBC Breakfast this morning, the Shadow Chancellor Rachel Reeves discussed Rishi Sunak’s announcements yesterday, and what this could mean for Britons in the future. She mentioned a loophole in Rishi Sunak’s energy bill help to benefit second home owners.
She said: “It’s important that the money is targeted.
“If you look through the detail, if you have a second or a third or a fourth home you’re likely to get this £400 payment multiple times.
“I don’t think that is a good use of taxpayer money and as well as the money raised from North Sea oil and gas yesterday, it looks like the Government are going to be borrowing an additional £10billion.
“That is a huge amount of money that will have to be paid back by future generations of tax payers and so it is essential we are getting value for money.
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She explained that there a ways for the Government to save people money in the long term, rather than just giving people £400, which will only cost future generations.
Ms Reeves continued: “If you insulate someone’s home, you take £400 off their bill, not just for one year but for years to come.
“That is a sensible investment to keep people’s bills low, boost our energy security as a country so we’re importing less oil and gas and it also helps the planet because it means we need less gas in the first place.
“The Government need to be taking those longer terms steps to make sure we’re not in the same place we were last year.
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“The money needs to be targeted.”
Millions of households will receive a £400 discount on their energy bills, and a £5billion tax will be levied on oil and gas giants as Rishi Sunak moved to counter the soaring cost of living.
Yesterday, the Chancellor unveiled emergency measures as part of a £15billion package to tackle the impact of soaring inflation, which has reached a 40-year high.
The poorest households will also get a payment of £650 to help with the cost of living, Chancellor Rishi Sunak said.
Mr Sunak scrapped his £200 energy bills loan, replacing it instead with a £400 grant, available to all households.
He said that tax breaks for innovation would ensure the windfall tax did not reduce investment in green power.
It comes after the UK energy regulator Ofgem said the typical household energy bill was set to rise by £800 in October, bringing it to £2,800 a year.
Bills have already risen by £700 on average in April.
The £400 grant will not need to be paid back. Direct debit and credit customers will have the money credited to their accounts, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
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