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With the energy price hike announced in April, Rishi Sunak was quick to offer support in his Spring Statement to help struggling households deal with the mountainous costs. However, the Chancellor is under pressure to provide more support to the UK population as things are set to get worse. But will Mr Sunak offer the help?

The Bank of England has warned that the economy could be moving into a recession as inflation is set to rise to 10% by autumn and the cost of living is spiralling out of control. So, it is only fitting that struggling families turn to the government for support. However, the Chancellor has yet to show any signs of helping the UK population so far.

Why won’t Rishi Sunak help those in need?

You would think that after the Bank of England’s predictions, it would be sending shockwaves in Downing Street, so why is it that No 11 is not keen on acting right now?

Summer energy usage will keep costs down – The Treasury is optimistic that lower energy usage over the summer could take the bite off the rising energy bills.

They are optimistic that this will buy them some time, hoping that wholesale prices may ease between now and August when Ofgem announces their next cap in October.

Rishi Sunak said that “Depending on what happens to bills, then, of course, if we need to act and provide support for people, we will. But it would be silly to do that now or last month or the month before when we don’t know exactly what the situation in the autumn will be.”

Positivity over the £22 billion support package – The Chancellor is keen to promote the £22 billion support package he has offered and his council tax rebates and energy support loan. There is the assumption that this will help ease the burden for a while and keep everyone feeling more optimistic about the future.

Do we need urgently need more financial support?

As much as many would like to remain optimistic about the future, there is a looming dark cloud. Critics believe that the economic situation is set to get worse. The political situation in Ukraine is not getting any better, which means that the price of gas is still going up.

The Bank of England has suggested that bills could go up by 40% to £2,800 in the next few months, which makes families who are already struggling with April’s price hike more laborious to comprehend. This would mean that if the situation and the help do not get any better-come winter, families will be pushed into fuel poverty.

 Will Rishi Sunak offer more financial support for struggling families?

There have already been talks from the government that there will be Summer Statement in August to discuss the support that could be available to families.

It is unclear what this could be; however, experts suggest that this could be injecting more money into the repayable energy loan, which was announced in the Spring Statement.

In addition, there might be a cash injection for the warm homes discount, which is currently open to low-income families.

However, pressure is increasing for the UK government to offer something before August, such as a mini-budget next month.

Official figures have yet to be released for April; however, Economists at Goldman Sachs had predicted that inflation would hit more than 9%, which is the highest level in 40 years.

What could Rishi Sunak include in his mini-budget?

Although the Chancellor has suggested that he has no plans to announce a mini-budget before this August, there is hope that the financial support will help the poorer families.

UK poverty charities are campaigning to increase the value of benefits and pensions to stay in line with inflation. If inflation is set to rise to 10%, compared to a 3% rise in benefits, the figures seem imbalanced, especially when the poorer families will be hit harder by the cost-of-living crisis.

Is there financial help available if you are struggling with your finances?

Many households are already reviewing their budgets and looking at ways to increase their income but reduce their costs.

However, a considerable amount of people are already in a debt crisis. It is not only UK families that are feeling the pinch. Businesses are struggling with debt because of high costs and staff shortages.

If you are in need of financial support and advice, then take a look at some of the debt help guides or visit our debt plans page to find out how we can help you with your financial struggles.

If you have debts of over £5,000, and you're struggling to repay them, get in touch today!

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