Possible responses to the cost of living crisis

Cost

Annual help

Who benefits

Lowest

Highest

£20bn

Limit increase in energy

price cap

No increase in bills

Environmental impact

Everyone

Complexity

£2.5bn

Eliminate VAT

on energy

£90 off bills

Environmental impact

Everyone

Complexity

Scrap energy bill

green levy

£5bn

£185 off bills

Environmental impact

Everyone

Complexity

£1.4bn

Expand warm

home discount

£300 off bills

Environmental impact

4.5m poorest

families

Complexity

£4bn

Cash bonus to households

on universal credit

£500 payment

Environmental impact

Households on

benefits

Complexity

£4.5bn

Cash bonus to households

not on higher rate

income tax*

£300 payment

Households earning

less than £50k a year

Environmental impact

Complexity

Lowest

Highest

Response

Cost

Who benefits

Environmental

impact

Complexity

Annual

help

Limit increase in

energy price cap

£20bn

No increase

in bills

Everyone

£90

Eliminate VAT

on energy

£2.5bn

Everyone

off bills

£185

Scrap energy

bill green levy

£5bn

Everyone

off bills

£300

Expand warm

home discount

4.5m poorest

families

£1.4bn

off bills

Cash bonus to

households on

universal credit

£500

Households

on benefits

£4bn

payment

Cash bonus to

households not on

higher rate income tax*

£300

Households earning

less than £50k a year

£4.5bn

payment