Sunak due to announce new financial measures, at 11am today.

volver

But the windfall tax is on profits already earned.

(I'm not being contrary, I just don't get it.)

Yep

For the disability benefit recipients this will be paid in September. If they are also eligible for the £650 low income payment this will be paid separately.

The eligible benefits for the £150 are: Disability Living Allowance; Personal Independence Payment; Attendance Allowance; Scottish Disability Benefits; Armed Forces Independence Payment; Constant Attendance Allowance; or the War Pension Mobility Supplement.

Whitewavemark2

Germanshepherdsmum

As I said wwm, it means the money is spent on energy bills. Otherwise some would spend it on other things and freeze next winter.

Rory Stewart would not agree. He belongs to a charity that gives hard cash to the poor, as it is found that they know better than any charity exactly what they need. He recognises that there is a risk that a tiny proportion may fritter it away, but he says it is a minor irritant when compared to the absolute good the poor can achieve with the money they are given.

The Vicars Relief Fund (part of the St-Martins-in-the-Fields charity) does exactly this Whitewave. They make small donations for emergency help. There are stories on their Website. I've always felt this did good work.

volver

I haven't worked out the numbers so this might not be right, but...

There's a windfall tax on big oil and gas profits, which is being given to us in the way of a discount off fuel bills, which will go back to the oil and gas firms.

So they get the money anyway. Is it just me?

No, it's not just you, volver. I pointed that out yesterday.

It doesn't give the poorest families any more to spend on food and other basics, either. It just stops them going into even more debt. They wouldn't have had that £400 anyway. They will, IMO, still struggle.'

People always know how to best spend their own money.

MaizieD

volver

I haven't worked out the numbers so this might not be right, but...

There's a windfall tax on big oil and gas profits, which is being given to us in the way of a discount off fuel bills, which will go back to the oil and gas firms.

So they get the money anyway. Is it just me?

No, it's not just you, volver. I pointed that out yesterday.

It doesn't give the poorest families any more to spend on food and other basics, either. It just stops them going into even more debt. They wouldn't have had that £400 anyway. They will, IMO, still struggle.'

Yep

Also, I'm sure that I read somewhere that the windfall tax will take about £5billion, whereas the cost of the treasury 'help' will be £15 billion., most of it going straight back to the energy companies.

Won't that just increase the fossil fuel companies' profits? Or is my logic failing?

That's what I mean MaizieD. I'm going to think about it while I do the hoovering

Well certainly the £400 which will amount to millions and millions, all managed by their fund managers to make even more profit.

You can see I’m very annoyed about this?

The uplift in UC will go on the rising cost of food I guess.

When do the pensioners get the rise in the triple lock?

The worst of this "help" that it is yet another "Crisis" measure. It is therefore, a pretty blunt instrument.

Having started to read the information on the Fuel Poverty Action Group site, I would hope the Labour now push for the Standing Charge to carry with it a minimum amount of energy. It cannot be right that the poorest, having turned everything off, still have to pay this charge and get nothing. An amount to keep a light on, some heating, a fridge and an oven a couple of times a week would make sense. The less the poor have, the less possible it is to make the best decisions.

The LP should also be asking why you pay less when you buy more energy. It is now time to turn this on its head. This would appeal to the UK's own "Teal" voters.

Whitewavemark2

Well certainly the £400 which will amount to millions and millions, all managed by their fund managers to make even more profit.

You can see I’m very annoyed about this?

The uplift in UC will go on the rising cost of food I guess.

When do the pensioners get the rise in the triple lock?

A lot of it will go into to the energy company profits which is why they have had a Windfall Tax, however they can avoid that if they invest in fossil fuel development in the UK.

That will increase the self sufficiency for UK energy, a very useful investment for our future.

The reinstatement of the pensioner's triple lock starts about mid April 2023.

A lot of it will go into to the energy company profits which is why they have had a Windfall Tax, however they can avoid that if they invest in fossil fuel development in the UK.

That will increase the self sufficiency for UK energy, a very useful investment for our future.

They can claim exemption if they want to invest in fossil fuel development? Is that right?

The lunatics certainly have taken over the asylum.

volver

^A lot of it will go into to the energy company profits which is why they have had a Windfall Tax, however they can avoid that if they invest in fossil fuel development in the UK.^

That will increase the self sufficiency for UK energy, a very useful investment for our future.

They can claim exemption if they want to invest in fossil fuel development? Is that right?

The lunatics certainly have taken over the asylum.

Yep

DiamondLily

The reinstatement of the pensioner's triple lock starts about mid April 2023.

Thank you

I had assumed that it was the companies who actually produce gas and oil (the likes of BP / Shell) who were hit by the windfall tax, not the companies we actually buy our domestic energy from. Have I got that wrong ?

Oldnproud

I had assumed that it was the companies who actually produce gas and oil (the likes of BP / Shell) who were hit by the windfall tax, not the companies we actually buy our domestic energy from. Have I got that wrong ?

I think you're right Oldnproud.

So the profits they have already made are subject to the windfall tax, but they can avoid the tax if they invest in more fossil fuels. But the £400 goes via our electric bill, to the utilities provider. E.g. SSE, who made £6.8bn profit last year.

Is that right?

volver

Oldnproud

I had assumed that it was the companies who actually produce gas and oil (the likes of BP / Shell) who were hit by the windfall tax, not the companies we actually buy our domestic energy from. Have I got that wrong ?

I think you're right Oldnproud.

So the profits they have already made are subject to the windfall tax, but they can avoid the tax if they invest in more fossil fuels. But the £400 goes via our electric bill, to the utilities provider. E.g. SSE, who made £6.8bn profit last year.

Is that right?

As I understand it - but I could easily be wrong - the £400 is to be credited to our account with our energy company, in the same way that our direct debits are. Yes, the energy company will have it at their disposal temporarily, just like they do with any excess credit we build up with them normally, but when everything eventually balances out, they will be no better off than if the customer had payed with their own money rather than this hand-out. Maybe!

Windfall tax is paid by energy production companies Shell BP etc, principally offshore oil and gas, do we produce much onshore currently?.

Energy sales companies SSE, EDF would pay corporation tax on UK Profits in the normal way, they all don’t produce energy, they sell it to consumers. Some are non fossil energy producers benefiting from the high prices.

We will have to do the best we can because BJ isn’t likely to be going anywhere soon, it’s only his own party that can depose him and there is no widespread move to do that.

There's absolutely nothing we can do about Johnson so how do we do he best we can?

Saetana
Sunak said several weeks ago that he was waiting for Ofgem to give an estimate of how much the energy cap was going to rise in October before he announced further measures. This has happened and further measures have been announced. Some people will never be happy, regardless of how much the government does. The "windfall tax" will raise far more than Labour's idea for one, and energy companies can offset some of this tax by investing more in UK gas, oil and renewables.

I'm sorry but you have been taken in by Sunak's statements. Companies already get tax relief for their costs which will include the cost of investing in renewables, repairs to existing plant etc etc. They will even get the 100% investment allowance for capital equipment. The ceiling for this has been temporarily increased to £1 million pa.

There is also relief for R & D costs up to 130% on top of the 100% of the actual costs that would be claimed in a company's accounts. The rules are a b it stricter but nevertheless the relief is available.

DiamondLily

The reinstatement of the pensioner's triple lock starts about mid April 2023.

I shan't hold my breath.

DaisyAnne

DiamondLily

The reinstatement of the pensioner's triple lock starts about mid April 2023.

I shan't hold my breath.

It will be done. If they don’t they won’t have any chance at all in the next general election, as they will be totally reliant on the pensioner vote.

That's good news, I will finally get my pension next April, it's been a very long six year wait.

Sunak has confirmed that the pensions triple lock will be reinstated next year and benefits will be uprated by whatever the inflation rate is this coming September. This means most of us on here will get a substantial rise next April in addition to all the one-off measures.

The Warm Home Discount is a separate issue - this has been increased to £150 and has to be applied for through your energy company, applications usually open in October.

Oh and the "windfall tax" on excess profits is not a one-off - it will remain in place until oil and gas prices have returned to something approaching a normal level (sunset clause). This is why it will raise far more money than Labour's one-off windfall tax.