Rishi Sunak’s £37bn cost of living aid package is being ‘eclipsed’ by inflation
BILLS and prices are soaring so fast that the Government’s cost of living aid package is being wiped out, MPs have warned.
A Commons inquiry said Rishi Sunak’s £37billion of support is being “eclipsed” by rampant inflation.
The Business Committee is demanding the Government immediately bolsters its help to save poorer families from a gruelling winter.
One of Mr Sunak’s last acts in the Treasury before resigning as Chancellor was unveiling a package of support to cushion households from the cost of living hell.
It included a £400 discount on energy bills, a £650 one-off lump sum to poorer families, £150 for disability benefit claimants, and £300 for OAPs.
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But billpayers are facing another energy price cap increase in October to between £2,800 and £3,244.
Inflation is also running at 9.4 per cent and experts warn it could hit 15 per cent.
Committee chair Darren Jones said: “Once again, the energy crisis is racing ahead of the Government.
“To prevent millions from dropping into unmanageable debt, it is imperative the support package is updated and implemented before October when the squeeze will become a full-on throttling of household finances and further tip the economy towards recession.”
Mr Sunak and leadership rival Liz Truss are likely to face questions on the cost of living from Sun readers in a TV debate at 6pm tonight. They will be on The Sun Showdown: Fight for No10, which is hosted by TalkTV.
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Average pay dips £44 a week
Ashley Armstrong
THE Government has been told to act now to help with soaring energy bills.
With predictions of the price cap going above £3,000 from October, experts say many will struggle as wages fall.
The average household income was down a record 18 per cent — £43.95 a week — in June, Asda’s Income Tracker shows.
More than a fifth of households have less than £10 a week spare after covering essential bills and families are £175.80 worse off than a year ago.
A separate survey by Nationwide shows overall spending fell by £165million in June as people cut back on luxuries so they could afford rising costs.