Economy Update

Hilary Benn Excerpts

Thursday 26th May 2022 Commons Chamber

[Rishi Sunak]

I thank my right hon. Friend for his question. With regard to the figures on borrowing and stimulus, we are still running a relatively significant budget deficit this year—forecast to be 4% back in spring—so I would not regard that as a particularly tight policy on the fiscal side, and we will add further support today. With regard to tax, it is important to continue to support investment. The way we have designed the energy profits levy, with a doubling of the investment relief, will mean that companies still have a very strong incentive to invest in the North sea.

[Hilary Benn (Leeds Central) (Lab)]

People on pre-payment meters, many of whom are on the lowest incomes, are still paying more for their energy than people who pay by direct debit, and they are increasingly likely to self-disconnect to turn off the light and the warmth. When will the Government act to end this price discrimination against some of the least well-off members of our society?

[Rishi Sunak]

I know that my right hon. Friend the Energy Secretary is engaged with all the companies on how best to support people through this. With regard to the support that we have announced today, about 7% of households are on non-smart pre-payment meters and we want to make sure that we get their support to them. That has been taken into account and will be delivered through vouchers. The remaining pre-payment meters are smart, and the credit can be put straight on those meters so those people benefit.