'Better late than never': Economist reacts to Rishi Sunak's cost of living support package

26 May 2022, 15:19 | Updated: 26 May 2022, 16:03

By Sam Sholli

This is the moment an economist branded Chancellor's cost of living support package "better late than never".

Duncan Weldon, who is also the author of 'Two Hundred Years of Muddling Through: The Surprising Story of Britain's Economy from Boom to Bust and Back Again', spoke the Shelagh Fogarty after Chancellor Rishi Sunak unveiled the support package.

The Chancellor announced plans to give every household in Britain £400 off their energy bills as support amid the cost of living crisis.

Mr Sunak has said that a temporary 25% windfall tax on oil and gas companies will be introduced to help fund the grants.

The Chancellor has scrapped his initial plan to loan households £200 and make them repay it over five years.

In addition, a one-off cost of living grant of £650 will be given to the most vulnerable in society.

READ MORE: Sunak gives every household £400 off energy bills after windfall tax U-turn

Pensioners will be given a one-off £300 payment, while disabled people will be given £150.

In response to the support package, Mr Weldon told LBC's Shelagh Fogarty: "Well, I think that was a bigger package than many people were expecting.

"It was a bigger package than was briefed to the papers last night."

He went on to say that the Chancellor has "spent about £15bn on supporting households" and that it has been funded by a £5bn windfall tax on energy producers and £10bn of borrowing, before saying "this is material help for people".

He added: "It's really, to be honest, what he should have been doing at his Spring Statement back in March. But, better late than never."

READ MORE: Windfall tax on energy firms explained: How do I get Rishi Sunak's new £400 discount?

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