Prime Minister Boris Johnson hopes to blunt calls for urgent action on the cost of living crisis by emphasizing that work is the best way out of poverty as ministers continue to debate the merits of the windfall.
Ten sources confirmed on Sunday that the prime minister will continue to focus the spotlight on the healthy state of the job market as calls to help families struggling with bills rise.
Ministers have yet to agree on what more needs to be done as Downing Street is eager to highlight the £22 billion already spent on household support and the need for economic growth.
Johnson said at the Welsh Conservative Party meeting on Friday. The post-corona economy is facing right now. I want you to think about it for a moment.”
However, there are already many people in the workforce struggling to make a living with wages not keeping up with inflation at 9% per year. Official figures show that 41% of universal credit claimants are at work, and the Joseph Rowntree Foundation calculates that 68% of families living in poverty include at least one working adult.
LDP economic spokeswoman Christine Jardine said: But the Conservatives are of little help.” A lot of people are “juggling to rake in long hours and multiple jobs,” she said.
New measures to help households cope with soaring inflation are now not expected until as early as June 6, as Congress opens for the Whitsun adjournment on Thursday.
The Treasury said Prime Minister Rishi Sunak was waiting for details on how sharply energy prices will rise in the fall.
Michael Lewis, CEO of E.ON, the UK’s largest energy supplier, said on Sunday that one in eight customers was already in arrears. Lewis said on BBC One’s Sunday Morning show: They simply cannot pay and it will only get worse.”
The price cap on consumer bills hit an all-time high last month, from £1,277 per year to £1,971, and is expected to rise to as little as £2,600 in October, Lewis said could reach up to £3,000. “It is a very significant impact and this is why we are asking the government to do more. We need more intervention in October, which is very important,” he said.
Former Treasury Secretary Jesse Norman became the latest Conservative party senior to support a one-time charge on the interests of oil and gas companies on Sunday, saying the policy is “ethically principled and pragmatic”.
However, several cabinet ministers, including Business Minister Kwasi Kwarteng and Brexit Opportunity Minister Jacob Rees-Mogg, have publicly voiced their opposition. Rees-Mogg warns against the idea that businesses are “honeypots” that “you can hit whenever you want.”
Foreign Secretary Liz Truss and others publicly appealed for tax cuts as a sign of an unusual feud. At a time when taxes are rising, Truss said a “low tax economy” is the way to solve the crisis.
Sunak has not ruled out a windfall, suggesting polls will be popular with the public, arguing that all options remain on the table.
One of the proposals under consideration is understood to be a tax cut that is less burdensome for companies that invest, but 10 sources said they have not yet been discussed with the prime minister.
Johnson and Sunak have met regularly to implement a set of policies, but have yet to decide whether to stick with specific measures to help the poorest families or include more costly all-out proposals. This could include VAT cuts or income tax cuts that Sunak plans for 2024.
After the minister’s spring statement was widely regarded as inappropriate, ministers have struggled to consistently answer questions about what the government will do more to help households.
Conservative supporters across the party, including Jake Berry, chairman of the Northern Research Group, Bernard Jenkin, chairman of the liaison committee, and Robert Halfon, chairman of the education committee, are encouraging the government to be more successful. urged to do a lot of work.