As part of the 15 billion bn package of support outlined by the chancellor, the poorest households will get a payment of 650 to help with the cost of living and pensioners and disabled people will receive more targeted support.
The support was broadly welcomed and described as a genuinely big package by the IFS, but Carl Emmerson said that if oil and gas prices remain high, the government will probably come under pressure to continue its household support for at least a further year. It is not yet known how many homes will be saved from falling into the bracket -- defined as spending 10% or more of disposable income on energy -- under the new measures.
He said that the UK is viewed as an investment-friendly jurisdiction and if windfall taxes are repeated over time, it risks creating an unstable environment and may lead to energy producers who operate globally, investing and relocating to other areas.