Rishi Sunak windfall tax: Sheffield MP Paul Blomfield demands more help for poorest families

Chancellor Rishi Sunak today, Thursday, May 26, announced a temporary windfall tax of 25 per cent on energy firm profits, which he forecast would raise £5 billion.

He also pledged that around eight million of the lowest-income households will get £650 in two lump sums this summer and autumn to help with fast-rising energy costs.

Sheffield Central MP Paul Blomfield said: “After five months of Labour pressure, the Government has finally done the right thing and accepted our proposal for a windfall tax on oil and gas giants’ profits to help support those struggling with rising bills.

Rishi Sunak announcement: Measures announced to help Sheffield residents with energy bills amidst cost of living crisis - following U-turn on windfall tax on energy companies

“But we need to make sure that the money reaches those who need it most. I challenged the Chancellor on why he’s failed to restore the £20 weekly uplift to Universal Credit that he took away so recently, and why that couldn’t be extended to legacy benefits.

“While he refuses this support, it seems that he’ll get a £400 payment for each of his four homes under the plans. That’s money he doesn’t need, while the support he’s offering will fall well short of the extra costs people face.

‘We have to redistribute that wealth’

“So we need to look at how the cash is being targeted and ensure it helps those who need it most, getting it to them quickly and ensuring they can stay warm and safe this winter.”

Martin Mayer, secretary of Sheffield Trades Council, said: “About time too. We’ve all been telling them for a long time to get round to the inevitable.

“It’s been pretty clear they didn’t want to. This has come about because of pressure on the Tories. The scale of profits made by the private companies is so massive – speculation and hyper inflation of fossil fuel energy has entirely been created by the private market.

“It doesn’t cost a penny more to produce oil than a year ago when prices were much lower. In France, where energy is nationalised, consumers have only faced a 4 per cent increase.

“We have to redistribute that wealth. The obvious way would be a price fix. It’s not enough to do a windfall tax.

“We need a massive investment in green energy, particularly wind power, which is the cheapest form of energy per penny to produce.

“This should all be a wake-up call to our vulnerability to fossil fuels.”

Martin added: "We need to make sure that the Tories target help at the poorest consumers, unlike the stupid 5p off fuel tax (on petrol and diesel). The wealthiest benefit more than the less well off because they can afford to travel more.

"This needs to be targeted at the least well off.”

The trades council is calling for an end to Universal Credit and an overhaul of the benefits system but in the short term Martin said that there should be a significant uplift to Universal Credit.

The regional TUC has called a ‘town hall rally’ at Sheffield Cathedral on Monday (May 30) to discuss the cost of living crisis, ahead of a national demonstration in London on June 18.

To sign up for the Sheffield meeting and transport to the demonstration, go to www.tuc.org.uk/DemandBetter.

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