Boris Johnson U-turned VAT on Energy Bills

boris johnson will consider the deduction tub Despite it being canceled only three weeks ago to help families struggling on energy bills.

The measure is one of several possible options for tackling the cost of living crisis that the prime minister and chancellor plan to discuss this week.

Earlier this month, Mr Johnson warned that eliminating the disliked tax on domestic fuel could prove to be a ‘blunt means’ that would benefit families better off than those in need.

But sources said last night that the option was firmly on the table – though no decision has yet been taken.

Energy firms, Labor and some Tory lawmakers have pressured ministers to end the 5 percent VAT rate on domestic fuels this winter.

Reducing the levy would cost the Treasury £1.7 billion and cut the average household fuel bill by about £60.

The prime minister and Rishi Sunak are expected to meet this week to discuss options and intend to make an announcement before February 7 when the energy price cap level is determined. It is feared that the bills may increase by 50 percent from April.

Last night a government source said the proposed VAT cut was “never one of many options” despite Mr Johnson’s comments, but insisted no decision had been made.

Earlier this month, Mr Johnson warned that eliminating the disliked tax on domestic fuel could prove to be a ‘blunt means’ that would benefit families better off than those in need.

The minister is understood to be keen on a ‘broad brush’ measure that would help middle-income families as well as those with low wages.

During the 2016 Brexit referendum campaign, Mr Johnson and Michael Gove pledged to end VAT on energy bills if Britain left the European Union.

Last night Labor reiterated its call for tax cuts as it warned that a million more people with disabilities are now “stuck in hardship and poverty” than in 2010.

An analysis of data from the Department for Work and Pensions by the party found that the number of people with disabilities currently living in poverty is 3.8 million – increasing from 2.6 million in 2010 when the Conservative Party came to power.

Labor women’s and equality spokeswoman Anneliese Dodds warned that the cost of living crisis has “saw poverty explosion” and called on the government to adopt Labor calls for a cut in VAT on energy bills.

Miss Dodds said: ‘Instead of taking action to help’ [disabled people]The Tories slashed Universal Credit, cut disability benefits by £70 million and voted against Labor’s measure to reduce energy bills.

‘Labour’s contract with the British people will ensure that people with disabilities are treated with respect and our fully-cost energy scheme will see those most in need of up to £600 off their energy bills.’

Labor has claimed that the cost of living crisis has disproportionately affected people with disabilities, adding that the ‘overall rate of disability poverty’ is now 27 percent – a fifth rising since 2010. It came as health unions ‘exposed’ wage increases to deal with the ‘exodus’ of inflation-tired NHS staff.

In evidence from the independent NHS wage review body, 14 unions representing 1.2 million workers warned that without a decent wage increase this year, healthcare would continue to lose workers at ‘alarming’ rates.

The government clashed with unions over NHS pay last year amid heavy pressure on the service due to the coronavirus crisis, eventually increasing by 3 per cent in England. But recent submissions have called on ministers to ensure that this year’s wage increase provides relief to healthcare workers from the increased cost of living and helps the NHS to retain and attract staff.

Union officials said the large number of Omicron-related work absenteeism among healthcare workers in recent weeks, with 93,000 vacancies in England, has shown the NHS is ‘fragile’. And he warned that while the vast majority of employees have ‘enough’, many are actively looking for work elsewhere.

Unison’s health chief Sarah Gorton urges the government to ‘put out its finger’ to catch ‘seasoned health workers’ [and] Protect the NHS’. She added: ‘Rise above inflation alone is not the magic solution to many of the NHS’s problems, but a good pay increase could be a ploy to persuade many burned out workers to stay.’

Joan Galbraith-Marton of the Royal College of Nursing said ministers had ‘repeatedly cut real pay on NHS staff’. She said: ‘Weary and demoralized staff need to know that the government is on their side – not to hear that it is stopping again on NHS pay. To stop the exodus… Ministers have to rise quickly to the challenge.’