Energy regulator Ofgem has today (Thursday 23 November, 2023) announced the energy price cap for the first quarter of 2024.
The price cap will increase by 5% on the previous quarter from 1 January to 31 March 2024. For an average household paying by direct debit for dual fuel this equates to £1,928, a rise of £94 over the course of a year – around £7.83 a month. The price cap, updated every quarter, sets a maximum that can be charged to customers for energy bills.
Ofgem’s priority is to protect consumers and ensure that they pay a fair price for their energy. Today’s price increase is driven almost entirely by rising costs in the international wholesale energy market due to market instability and global events, particularly the conflict in Ukraine.
The regulator will continue to use all levers available to ensure costs are spread fairly and customers struggling with bills are supported. It has today further developed plans to permanently remove the so-called ‘prepayment meter premium’ to ensure that prepayment customers are charged the same standing charge as direct debit customers. Ofgem has already launched a ‘Call for Input’ on standing charges running until 19 January, 2024.
Jonathan Brearley, CEO of Ofgem, said: “This is a difficult time for many people, and any increase in bills will be worrying. But this rise – around the levels we saw in August – is a result of the wholesale cost of gas and electricity rising, which needs to be reflected in the price that we all pay.
“It is important that customers are supported and we have made clear to suppliers that we expect them to identify and offer help to those who are struggling with bills.
“We are also seeing the return of choice to the market, which is a positive sign and customers could benefit from shopping around with a range of tariffs now available offering the security of a fixed rate or a more flexible deal that tracks below the price cap.
“People should weigh up all the information, seek independent advice from trusted sources and consider what is most important for them whether that’s the lowest price or the security of a fixed deal.”
Ofgem recently set out new rules for suppliers making clear that they should be prioritising enquiries from vulnerable customers who need help and proactively reaching out to households if they miss two monthly or one quarterly payment, check to see if they are struggling with bills and, if so, offer support such as affordable payment plans or, if appropriate, repayment holidays.
The regulator has also taken robust action to raise standards of customer service and worked in conjunction with suppliers and consumer groups to encourage industry to support those struggling with their bills, including the Winter 2023 Voluntary Debt Commitment recently announced by Energy UK and Citizens Advice.
A Statutory Consultation on levelling standing charges for prepayment meter and direct debit customers so customers pay the same daily charge has been published today.
Previously, customers on prepayment have been charged more than those who pay by direct debit to cover the additional costs and resources required by suppliers to provide their services.
In October 2022, the government introduced measures to temporarily remove this ‘PPM premium’ via the Energy Price Guarantee, which remains in place until April 2024.
Following a consultation this summer, Ofgem is now proposing an enduring solution that would ‘levelise’ these standing charges to coincide with the end of that government support. This consultation also sets out proposals to share the costs of bad debt more equally across customers to reduce the premium paid by standard credit customers (those who pay on receipt of a monthly or quarterly bill for the exact amount of energy used).
Under the terms of the regulator’s proposal, this would save PPM customers around £50 a year, reduce Standard Credit bills by around £45 a year but add around £20 a year for direct debit customers. Ofgem is keen to hear views on this proposal from all interested parties.
This follows the launch of a wider conversation on the issue of standing charges last week and how they should be set, which has already attracted a high number of responses in the first week of the consultation.
In response to today’s Ofgem energy price cap announcement, Joanna Elson CBE, Chief Executive of Independent Age said: ““Today’s energy price cap announcement offers little reassurance for older people in financial hardship, with bills still 85% higher than before the energy crisis.
“We speak to people in later life who are living in one room because they can’t afford to properly heat their home, those who risk falls because they aren’t turning on the lights, and older people who are in thousands of pounds of debt to energy suppliers. They urgently need help.
“With average energy prices having close to doubled in recent years, coupled with rocketing household costs such as water, food and broadband, those on a low income have endured several years of sky-high costs from all angles. Older people in financial hardship are especially vulnerable to sharp price increases, as many are on a fixed income. The extra money simply isn’t there.
“The UK Government needs to announce financial support now to help the most financially vulnerable, including those in later life, get through this winter. After that, we need a long-term solution to protect against the impact of continuing high prices, including energy.
“Our evidence shows an energy social tariff would offer more stability to older people on a low income and make sure no one is forced to make dangerous choices. This must be something the UK Government consults on.”
The next quarterly price cap announcement will be announced in February 2024, covering April – June 2024.
Reducing poverty, delivering growth, tackling climate change and providing high-quality public services will be the Scottish Government’s top priorities for the year ahead, First Minister Humza Yousaf has pledged.
Outlining his first Programme for Government, the First Minister described it as “unashamedly anti-poverty and pro-growth”. The package of measures aims to help build a more equal society through concerted efforts to eradicate poverty, tackle the cost of living crisis, and create opportunities for businesses and individuals.
The Programme supports the Scottish Government’s wider work in building a fair, green and growing economy, and strengthening public services.
Key commitments include:
expanding access to funded childcare
paying social care workers in a direct care role and frontline staff providing funded early learning and childcare in the private, voluntary and independent (PVI) sector, at least £12 an hour from April
speeding up renewable energy projects with a new deal for the onshore wind industry
delivering a new £15 million support package to unleash entrepreneurial talent
expanding free school meals in primary schools
The First Minister said: ““The Scottish Government will always be on the side of the people we serve. Scotland is – certainly should be – a land of opportunity, but I know it doesn’t always feel like that to people bearing the brunt of the UK Government cost-of-living crisis, to families living in the poverty, to struggling businesses, to those who still face consequences of discrimination and inequality. I get that.
“This Programme is an opportunity to be explicit about the driving mission of this government. So let me make it abundantly clear, we are a government who will maximise every lever at our disposal to tackle the scourge of poverty in our country.
“But let me be equally clear, we also need to support economic growth. Not for its own sake but so we can tackle poverty and improve our public services. And we will be unapologetic in taking the action necessary to ensure a sustainable future for our children and planet.
“The unfortunate reality is that the Scottish Government is currently operating with one hand tied behind our back. In the last five years we have spent more than £700 million in countering the impact of UK Government welfare cuts alone.
“That’s why this government will never stop believing that decisions about Scotland should not be made by a government based in Westminster, but by the people of Scotland. In proposing the case for independence we will set out a positive vision for Scotland’s future.
“Scotland’s economy already performs better than most parts of the UK, we have world-class universities and colleges, and significant strengths and potential in many of the key economic sectors of the future. Today’s Programme for Government sets out how we will build on these strengths, to make people’s lives better.
“In the year ahead, we will support more than 300,000 children with more than £1,000 a year through the Scottish Child payment.
We will expand the availability of high quality childcare – providing funding in six early adopter local authority areas to offer increased access to childcare from nine months through to the end of primary school. And we will invest in raising the pay of childcare and social care staff.
“We will also safeguard the rights of tenants, promote payment of the living wage, and provide help for disabled people with complex needs, so that they can live independent lives.
“We will do all of this – first and foremost because it is the right thing to do. And also, as I know well from my own family history, because providing people with support and security helps them to contribute to society and to create opportunities for others. This Programme for Government shows how we will make progress towards a fairer, wealthier and greener Scotland.”
Responding to Tuesday’s Programme for Government, Anna Fowlie, Scottish Council for Voluntary Organisations’ (SCVO) Chief Executive, said: ““The First Minister has today set out a Programme for Government (PfG) which outlines priorities for Scotland which voluntary organisations working in and for communities have welcomed.
“While the PfG recognises the contribution voluntary organisations make across different portfolios, it doesn’t move far or fast enough to address fundamental changes to the operating environment that would recognise the vital role of Scotland’s voluntary sector in delivering on government priorities.
“Today’s PfG restates the Scottish Government’s commitment to Fairer Funding for the voluntary sector, which we welcome. The Scottish Government’s current poor grant-making practice makes the focus on improving the clarity and consistency of existing approaches very important, but we must continue to work together to support the sector to be financially sustainable.
‘To secure the future of the invaluable work our sector delivers, we must not only address disappointing practice, but also implement the longer-term improvements that are so desperately needed.
“We can’t forget that an on-paper commitment to Fairer Funding was made by ministers earlier this year. It is disappointing that progress on this commitment has been so slow. Today’s announcement commits to developing a plan, when urgent action is needed. Our long-term work on Fair Funding provides clear recommendations, based on the sector’s experiences, and a clear blueprint for next steps.
“The PfG’s firm commitment to taking forward a wider review of charity law is also welcome, particularly the commitment to work alongside the sector. It is important that the review is comprehensive and independent and doesn’t shy away from fundamental issues. We need a holistic approach to regulating the voluntary sector that supports the role of modern charities.
“With charities experiencing growing frustration at the funding relationship with Scottish Government and the impact this is having on organisations, staff, volunteers, and the services and support they offer, we had hoped for more action and urgency.
The steps outlined will move us in the right direction, albeit slowly, and we will of course work with the Scottish Government to ensure that they do so in the ways that make the biggest difference to voluntary organisations across Scotland, supporting the invaluable contribution they make to Scotland’s economy and society.”
‘Warm words won’t stop a warming planet’
Climate campaigners have reacted to the latest Scottish Programme for Government saying that “warm words won’t stop a warming planet.”
Friends of the Earth Scotland climate and energy campaigner Caroline Rance commented, “This is an underwhelming programme for more of the same when what is needed a radical change that can speed Scotland away from the damage being wrought by fossil fuel companies.
“The First Minister talked a good game about the importance of climate action and a just transition to net zero, but warm words won’t stop a warming planet.
“The climate emergency demands scaled up action that rapidly shifts us away from fossil fuels, prioritises public transport and puts in a credible plan in place to support workers in the transition from the oil industry to good, green jobs.”
+++ SPEEDING UP OF RENEWABLES PLANNING
Rance commented: “It’s a positive step that the process for onshore renewables will be quickened up but sites must still be environmentally appropriate, and far more work is needed to ensure that local communities can benefit from developments in their area.
+++ SINGLE USE VAPES
Friends of the Earth Scotland circular economy campaigner Kim Pratt: “The evidence that single use vapes are harmful to young people and polluting our environment is overwhelming.
“Businesses have been allowed to put profit before their obligations to provide safe disposal service for these products. The quickest and surest way to end the harm caused by single use vapes is to ban them.
“While consultation on a ban is welcome, we don’t have time to change our economy one product at a time. From wasteful plastic packaging to phones that can’t be fixed, and harmful products like single use vapes, everything we own needs to become more sustainable.
“That’s why the Circular Economy Bill is so important because it must transform our economic systems so that all materials are used sustainably.”
+++ CIRCULAR ECONOMY BILL
Friends of the Earth Scotland circular economy campaigner Kim Pratt commented: “Scotland’s material use is more than twice sustainable levels. The Circular Economy Bill is an important opportunity for Scotland to change the way it uses materials by making businesses design products with less materials, encourage repair and reuse and limit harmful single use products.
“The Circular Economy Bill must be as strong as possible to create the system change that we need, including strong targets for reducing our consumption and consideration of the social impacts of material use.”
Independent Age: ‘A Missed Opportunity’
Following the First Minister’s Programme for Government, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Today is a missed opportunity to help the 150,000 older people living in poverty across Scotland.
“Alarmingly, this figure has risen by 25% in the last decade alone, with the ongoing costs crisis squeezing the budgets of those in later life to breaking point. The First Minister should have used today’s Programme for Government to announce a strategy to tackle pensioner poverty and reverse this frightening trend.
“None of us dream of a later life where, because of the cost, we risk falls by not turning on the lights or are forced to skip meals, yet this is now a reality for 1 in 7 older people.
“With over 3 in 5 over 65s on a low income currently cutting their food spending, and almost 3 in 4 reducing their heating, they’re terrified for the winter to come.
“The Scottish Government should reconsider this glaring omission from today’s announcement and urgently announce a plan to reduce financial hardship in later life. They’ve said that tackling poverty is a key priority – older people must not be forgotten in this.”
The upcoming Programme for Government must include plans for a pensioner poverty strategy, says older people’s financial hardship charity Independent Age.
1 in 7 pensioners in Scotland are in poverty, a number that has risen by a quarter in the last decade, and the current cost of living crisis means that many more are at risk of being pulled into financial hardship.
Polling by Independent Age shows that almost half (45%) of over 65s living on a low income (£15,000 per year or less) in Scotland are cutting back on their food spending. Well over a third (42%) of the same group are concerned about covering their food bills for the next 6 months.
With energy prices remaining high, Independent Age polling found that in Scotland, over half (54%) of over 65s on a low income are worried about how they will afford the cost of heating their home.
The charity also found that inadequate incomes coupled with rising costs is causing some older people to disconnect from digital technology. Without this it’s often harder to access information, stay in touch with friends and family and save money by shopping around for the best deals.
Polling showed that 39% of older people on a low income are already cutting back on their phone usage to save money. Over a third (35%) of the same group are fearful of not being able to afford their broadband bill during the next 6 months.
Independent Age is calling on the Scottish Government to urgently produce a pensioner poverty strategy. Whilst the charity continues to call on the UK Government to do more to support older people facing financial hardship across the country, there are actions the Scottish Government can take to support older people living in poverty in Scotland.
Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Older people struggling financially can’t wait any longer for the Government to step in. The First Minister must include a pensioner poverty strategy in next month’s Programme for Government.
“Every day, we hear from older people across Scotland who are cutting back to dangerous levels. We’ve heard stories of those in later life risking falls by not turning on the lights at night, terminally ill older people not using the heating during winter and those who only eat one meal a day, all to save money. They are crying out for a plan to help them.
“If the Scottish Government wants to make Scotland the best place in the world to grow old, they can start now by committing to introducing a pensioner poverty strategy. We’ve heard positive words on the Government’s commitment to tackling poverty, but now older people need to see action.
“The Programme for Government must include a strategy to tackle pensioner poverty, or we risk seeing thousands more fall into financial hardship.”
Independent Age launched its powerful report “Not enough to live on”: Pensioner poverty in Scotland in February this year. It set out the devastating experience of poverty for those aged over 65.
The charity interviewed 38 people across the nation and these in-depth conversations uncovered struggles around managing on a low, fixed income, battling high costs and living in unaffordable and inadequate housing.
June, 67, Glasgow, is currently struggling financially. She said:“I’m very cautious with money. I’m careful to make sure I’ve got enough to get my food. You’ve got to be careful because you can still run out at the end of the month, then you end up needing to go to the food bank.
“If something big was to come up that was needed, say my fridge, God forbid, or my cooker or washing machine, it would be a worry. I would have to get help. I can’t go out and buy big things. I cannot go for a cup of tea or buy a wee meal for my friends, it’s irritating because you want to do more. But I’m restricted, I’ve not got the money for that. So you just forget it. I live a quiet life.”
Nearly half (44%) of older people in Scotland on a low income1 have struggled to keep up with their broadband bill in the last 6 months, according to new research from the older people’s charity Independent Age.
Of that number, 18% found it a constant struggle, and 26% struggled from time to time.
Independent Age says the findings from YouGov commissioned polling raise fears that the cost of living has deepened the ‘digital divide’ and warns that older people in financial hardship may become even more isolated and could face additional costs if they are forced to shut off their internet access.
The survey also found:
More than 1 in 3 (35%) older people in financial hardship said they are worried they will not be able to pay their broadband bill over the next 6 months.
36% are currently having to cut back their spending on their internet, phone or TV subscription services a great deal or a fair amount.
Almost 1 in 10 (9%) have already cancelled broadband and phone services over the winter in an effort to save money and 6% had already taken this action before the winter began, to save money.
The charity warns that not being able to go online could mean that older people on low incomes are unable to access information about financial entitlements or services, miss out on savings by not being able to search for the best deals and lose vital social connections.
It’s calling on broadband providers to further promote their social tariffs so that older people in financial hardship are aware that support for their internet costs is available. The charity also believes the Government has a role to play in promoting social tariffs as part of the support available during the cost of living crisis.
Social tariffs are cheaper broadband contracts for those receiving means tested benefits, such as Pension Credit (the State Pension top-up for those on a low income). However, current take-up is low, with just 5.1% of eligible households using them2,and Independent Age say that eligible older people are going without as a result.
Morgan Vine, Head of Policy and Influencing at Independent Age, said:“The choice to engage online shouldn’t be taken away due to cost. We’re hearing from people in later life who are struggling to pay their broadband bills, cancelling their services, or making considerable sacrifices to afford this expense, such as going without fresh food.
“Cancelling broadband can mean someone misses out on the best deals, social connections with friends and family or on finding information about financial support they could be entitled to, such as Pension Credit or Attendance Allowance.
“Independent Age is calling on broadband providers to do all they can to support vulnerable customers. We also think the Government has a role to play when promoting the options available now and thinking about consistency in the longer term. At the moment it’s a confusing picture for older people on low income, with each provider offering different options.
“While broadband social tariffs are available from most major providers, and can be a great help for those in financial hardship, take up is extremely low. Independent Age wants providers to proactively promote their social tariffs and target their activity at all eligible groups, including ensuring older people on a low income are not missed out.”
“There’s a growing assumption that we can all do everything online now, but because of my financial situation, I’ve had to cancel my phone and Internet contracts. So now if I want to do anything that involves being on the Internet, I need to get hold of a library that’s open at certain times.
“I don’t know what’s happened in other parts of the country, but we used to have access to Wi-Fi on Greater Manchester’s buses and trams. That disappeared during COVID. I’m assuming it was taken off as a cost-saving thing because people weren’t traveling on the buses, but they’ve never put it back.
“And that doesn’t just impact older people who don’t have Wi-Fi — it impacts young families who are trying to do stuff whilst they’re out and about because they can’t afford to pay for the subscription at home.”
High costs across the board, from utilities and food to accessing the internet, are causing misery for thousands of older people across Scotland, warns national charity Independent Age.
Laid bare in their new report – The Hidden Two Million – is the profound impact high costs are having on those in later life living on the lowest income across the UK. In Scotland, over half (56%) of those polled on a low income (less than £15,000 per year) say they are worried about the cost of electricity. When asked about heating, still over half (54%) were concerned about the utility’s affordability.
Food inflation has been at record highs the past year, and this has also had a harmful impact on those on the lower end of the income spectrum. Polling by Independent Age shows that a staggeringly high 45% of older people living on £15,000 per year or less are cutting back on their food spending and well over a third (42%) of the same group are concerned about covering their food bills for the next 6 months.
Across the UK, 20% of single pensioners, and 7% of couple pensioners have no other source of income outside the State Pension and other benefits. Older people in financial hardship have shared with Independent Age that managing on a fixed income means, when faced with increased bills, the only options they feel they have to choose from, are to cut back – which could harm physical and mental health – or go into debt.
It’s not just big bills that are squeezing older people’s finances. Smaller but important bills, such as phone and broadband, are also causing money worries.
New polling commissioned by Independent Age shows that 39% of older people with an income of less than £15,000 per year, are already cutting back on their phone usage to save money while 35% of the same group are fearful of not being able to afford their broadband bill during the next 6 months.
This is concerning as not being digitally connected can lead to social isolation and limits access to better deals only found online.
Recommendations
Independent Age is urging both the government and private sector to do the following in support of older people in financial hardship:
Utility companies must provide and promote financial support to everyone on low incomes, including older people
The UK Government should introduce national social tariffs across utilities such as energy
The UK and Scottish Governments must ensure that everyone in financial hardship in later life receives the financial support they are entitled to
June, 67, Glasgow, is currently struggling financially. She said:“Now I know exactly what’s getting paid with my pension, I know what’s coming in.
“I’m very cautious with money. I’m careful to make sure I’ve got enough to get me my food. You’ve got to be careful because you can still run out at the end of the month, not got any money, know what I mean, then you end up going to the food bank.
“If something big was to come up that was needed, say my fridge, God forbid, or my cooker or washing machine, it would be a worry. I would have to get help. I can’t go out and buy big things.
“I cannot go for a cup of tea or buy a wee meal for my friends, it’s irritating because you want to do more. But I’m restricted, I’ve not got the finance for that. So you just forget it. I live a quiet life.”
Debbie Horne, Scotland Public and Policy Affairs Manager at Independent Age said:“These new figures are a stark reminder of just how frightening turbulent economic times can be for those on the lowest incomes.
“Thousands of people in later life across Scotland are being financially squeezed in every direction, this can be damaging to people’s mental and physical health.
“We hope that all utility companies will review their support for their most vulnerable customers, including older people, and ensure they are protected from future spikes in costs.
The hidden two million. The reality of financial hardship in later life
Independent Age launched its powerful report at an event last week to raise awareness of its renewed focus to support the more than 2 million older people across the UK living in financial hardship (including the 150,000 in poverty in Scotland), and those hovering above the line in a financially precarious situation.
The new research provides the latest insights into poverty in later life.
The event also saw the premier of the charity’s new thought provoking film that amplifies the voices of older people currently living in financial hardship.
Independent Age: Scots sacrifice essentials to ensure they can buy for others this Christmas
Many people in Scotland are facing a bleak run up to Christmas, as they cut back on essentials like food and heating to ensure they can buy presents for loved ones.
In a national survey of people aged 50 and over by older people’s charity Independent Age, a third (33%) of Scottish respondents said that in order to spend money on loved ones this year, they would reduce spending on essentials for themselves as Christmas approaches.
Of those who said that they will reduce their spending:
69% will socialise less
44% will cut back on heating their homes
41% will spend less on food
37% will cut back on the electricity they use
The findings come as inflation continues to rise, with the official rate recently soaring to 11.1%.
Scottish Government statistics show that 1 in 7 (150,000) older people in Scotland are living in poverty, with 120,00 pensioners living in persistent poverty (meaning they’ve spent at least three of the past four years in poverty).
Claire Donaghy, Head of Scotland at Independent Age, said:“It’s extremely alarming that those in later life are being forced to cut back on essentials so they can buy presents for loved ones.
“Older people living in one of the world’s richest nations shouldn’t have to risk damaging their health by reducing the food they eat and using less heating during the coldest months.
“For many in Scotland, the festive season is something to look forward to, but increasing numbers of older people are being hit from every angle financially.”
Cost-of-living fears this festive season
The immense financial pressure faced by millions of older people this winter is forcing many of them to cut back on essentials – as well as foregoing presents for others.
In the same survey over two fifths (41%) of people in Scotland said they are planning on spending less money at Christmas this year, compared to last.
When asked how they plan to reduce their spending, worryingly, 49% of people planning to spend less said they would reduce spending on food, and 47% said they would spend less on heating and gas.
When asked about general Christmas spending, 56% who plan to spend less at Christmas said they plan to spend less on presents for their children or grandkids, and this number rises to 78% when asked about other friends and family.
There will be even fewer ornaments and lights to enjoy this festive season, with 39% saying they will reduce spending on decorations that require electricity. These figures paint a bleak picture of how the cost-of-living crisis will stop many from enjoying their usual Christmas.
End the Pension Credit Scandal
With many households struggling to cope financially this December, Independent Age is calling on the government to ensure older people are receiving the support they are entitled to, including Pension Credit.
For people over 66, Pension Credit acts as an income top-up, and is a gateway to additional support, including the Warm Home Discount and Council Tax Reduction. It is also being used as a mechanism by the government to decide who gets some of the vital cost-of-living payments announced in November.
In what the charity is calling a ‘national scandal’, Independent Age estimate that almost 80,000 people who are eligible for Pension Credit in Scotland are currently not claiming, resulting in £160 million being missed out on by older people in Scotland.
Claire Donaghy continues: “The government was right to uprate Pension Credit by inflation in the Autumn Budget, but the hard truth is too many older people are still not receiving this vital income top-up that they are eligible for. Without it, many people in later life are facing a stressful and dire Christmas, forced to cut back on food and heating, which can be detrimental to their health.
“It is scandalous that people are struggling when billions of pounds has been set aside for them and the money is sitting there unused. The government must commit to a Pension Credit strategy to prevent hundreds of thousands of people missing out.”
Independent Age has launched a petition calling on the government to end the Pension Credit scandal and announce a strategy to increase uptake.
The Chancellor will make a statement at 11am, bringing forward measures from the Medium-Term Fiscal Plan that will support fiscal sustainability.
He will also make a statement in the House of Commons this afternoon.
This follows the Prime Minister’s statement on Friday, and further conversations between the Prime Minister and the Chancellor over the weekend, to ensure sustainable public finances underpin economic growth.
The Chancellor will then deliver the full Medium-Term Fiscal Plan to be published alongside a forecast from the independent Office for Budget Responsibility on 31 October.
The Chancellor met with the Governor of the Bank of England and the Head of the Debt Management Office last night to brief them on these plans.
That racket you hear is those infamous Mini-Budget economic plans being put through the shredder – Ed. …
UPDATE: The Chancellor of The Exchequer Jeremy Hunt has today, Monday 17 October, brought forward a number of measures from 31 October’s Medium-Term Fiscal Plan:
Changes designed to ensure the UK’s economic stability and provide confidence in the government’s commitment to fiscal discipline
Basic rate of income tax to remain at 20% until economic conditions allow for it to be cut, IR35 and dividend tax rate reforms no longer going ahead
Treasury-led review of energy support after April 2023 launched
Following conversations with the Prime Minister, the Chancellor has taken these decisions to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline.
The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.
Today’s announcement represents another down payment following the reversal of the corporation tax cut announced on Friday 14 October by the Prime Minister. The Chancellor will publish the government’s fiscal rules alongside an OBR forecast, and further measures, on 31 October.
In his statement the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament.
The following tax policies will no longer be taken forward:
Cutting the basic rate of income tax to 19% from April 2023. While the government aims to proceed with the cut in due course, this will only take place when economic conditions allow for it and a change is affordable. The basic rate of income tax will therefore remain at 20% indefinitely. This is worth around £6 billion a year.
Cutting dividends tax by 1.25 percentage points from April 2023. The 1.25 percentage points increase, which took effect in April 2022, will now remain in place. This is valued at around £1 billion a year.
Repealing the 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) from April 2023. The reforms will now remain in place. This will cut the cost of the government’s Growth Plan by around £2 billion a year.
Introducing a new VAT-free shopping scheme for non-UK visitors to Great Britain. Not proceeding with this scheme is worth around £2 billion a year.
Freezing alcohol duty rates from 1 February 2023 for a year. Not proceeding with the freeze is worth approximately £600 million a year. The next steps of the Alcohol Duty Review announced in Growth Plan 2022 will continue as planned. The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties under the Alcohol Duty Review will be considered in due course.
This follows on from the previously announced decisions not to proceed with the Growth Plan proposals to remove the additional rate of income tax and to cancel the planned increase in the corporation tax rate.
Taken together, these changes are estimated to be worth around £32 billion a year.
The government’s reversal of the National Insurance increase and the Health and Social Care Levy, and the cuts to Stamp Duty Land Tax, will remain benefitting millions of people and businesses. The £1 million Annual Investment Allowance, the Seed Enterprise Investment Scheme and the Company Share Options Plan will also continue to further support business investment.
Energy bills support review
The government has announced unprecedented support within its Growth Plan to protect households and businesses from high energy prices. The Energy Price Guarantee and the Energy Bill Relief Scheme are supporting millions of households and businesses with rising energy costs, and the Chancellor made clear they will continue to do so from now until April next year.
However, looking beyond April, the Prime Minister and the Chancellor have agreed that it would be irresponsible for the government to continue exposing the public finances to unlimited volatility in international gas prices.
A Treasury-led review will therefore be launched to consider how to support households and businesses with energy bills after April 2023. The objective of the review is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. The Chancellor also said in his statement that any support for businesses will be targeted to those most affected, and that the new approach will better incentivise energy efficiency.
The government is prepared to act decisively and at scale to regain the country’s confidence and trust. The Chancellor stated in his speech that there will be more difficult decisions to take on both tax and spending. This means doing what is needed to lower debt in the medium term and to ensure that taxpayers’ money is well spent, putting public finances on a sustainable footing.
In light of this, government departments will be asked to find efficiencies within their budgets. The Chancellor is expected to announce further changes to fiscal policy on 31 October to put the public finances on a sustainable footing.
Further information
Table of total benefit of tax policy reversals:
Policy (£bn)
2022-23
2023-24
2024-25
2025-26
2026-27
Re-instate plans to raise Corporation Tax to 25% from April 2023
+2.3
+12.4
+16.6
+17.6
+18.7
Suspend 1p reduction in the basic rate of income tax
0
+5.3
+5.9
+5.8
+5.9
Maintain additional rate of income tax
+2.4
-0.6
+0.8
+2.2
+2.1
Maintain 1.25 percentage point increase in dividends tax rates
0
+1.4
-1.0
+1.1
+0.9
Maintain 2017 and 2021 reforms to off-payroll working rules (also known as IR35)
0
+1.1
+1.4
+1.7
+2.0
Cancel VAT-free shopping scheme for non-UK visitors to Great Britain
0
0
+1.3
+2.0
+2.1
Cancel one year freeze to alcohol duty rates
+0.1
+0.5
+0.6
+0.6
+0.6
Total
+4.7
+20.1
+25.4
+30.9
+32.3
Costings in the table are as set out in the Growth Plan 2022 – except for the 1p reduction in the basic rate of income tax, which is the costing from Spring Statement 2022 as adjusted in the Growth Plan 2022. Final costings will be set out as part of the Medium-Term Fiscal Plan on 31 October. Totals may not sum due to rounding.
THE CHANCELLOR’s STATEMENT:
A central responsibility for any Government is to do what is necessary for economic stability.
This is vital for businesses making long-term investment decisions and for families concerned about their jobs, their mortgages, and the cost of living.
No government can control markets, but every government can give certainty about the sustainability of public finances and that is one of the many factors influencing how markets behave.
And for that reason, although the Prime Minister and I are both committed to cutting corporation tax on Friday she listened to concerns about the mini budget and confirmed we will not proceed with the cut to Corporation Tax announced.
The government has today decided to make further changes to the mini budget.
And to reduce unhelpful speculation about what they are, we have decided to announce these ahead of the Medium-Term Fiscal Plan, which happens in two weeks.
I will give a detailed statement to Parliament and answer questions from Members of Parliament.
But because these decisions are market sensitive, I have agreed with the Speaker the need to give an early, brief summary of the changes which are all designed to provide confidence and stability.
Firstly, we will reverse almost all the tax measures announced in the Growth Plan three weeks ago that have not started Parliamentary legislation.
So whilst we will continue with the abolition of the Health and Social Care Levy and Stamp Duty changes we will no longer be proceeding with:
The cut to dividend tax rates.
The reversal of off-payroll working reforms introduced in 2017 and 2021.
The new VAT-free shopping scheme for non-UK visitors.
Or the freeze on alcohol duty rates.
Secondly, the government’s current plan is to cut the basic rate of income tax to 19% from April 2023.
But at a time when markets are rightly demanding commitment to sustainable public finances, it is not right to borrow to fund this tax cut.So I have decided that the basic rate of income tax will remain at 20% and it will do so indefinitely, until economic circumstances allow for it to be cut.
Taken together with the decision not to cut Corporation Tax, and restoring the top rate of income tax the measures I’ve announced today will raise, every year, around £32bn.
Finally, the biggest single expense in the Growth Plan was the Energy Price Guarantee.
This is a landmark policy supporting millions of people through a difficult winter and today I want to confirm that the support we are providing between now and April next year will not change.
But beyond that, the Prime Minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices.So I am announcing today a Treasury-led review into how we support energy bills beyond April next year.
The objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.
Any support for businesses will be targeted to those most affected.
And the new approach will better incentivise energy efficiency.
The most important objective for our country right now is stability.
Governments cannot eliminate volatility in markets, but they can play their part, and we will do so because instability affects the prices of things in shops, the cost of mortgages, and the value of pensions.
There will be more difficult decisions to take on both tax and spending as we deliver our commitment to get debt falling as a share of the economy over the medium term.
All departments will need to redouble their efforts to find savings, and some areas of spending will need to be cut.
But, as I promised at the weekend our priority in making the difficult decisions that lie ahead will always be the most vulnerable.
And I remain extremely confident about the UK’s long term economic prospects as we deliver our mission to go for growth.
But growth requires confidence and stability, and the United Kingdom will always pay its way.
This Government will therefore make whatever tough decisions are necessary to do so.
REACTION:
Commenting on the Chancellor Jeremy Hunt’s fiscal statement today (Monday), TUC General Secretary Frances O’Grady said: “The Conservatives drove the UK economy over a cliff. Hunt slamming the gears into reverse now won’t help families and businesses already hit by soaring borrowing costs.
“People needed reassurances today. Instead, they got more uncertainty – about energy bills, about our public services, and about whether universal credit and benefits will rise with inflation.
“We are now on the brink of a deep and damaging recession that threatens millions of jobs. But the latest Conservative Chancellor still has the same basic approach that got us into this mess.
“The Chancellor should have announced a boost to universal credit and pensions, and a comprehensive plan to get wages rising faster for everyone. And he should have announced a much higher windfall tax on oil and gas giants.”
On the announcement of a review of support for families and businesses with energy costs beyond April 2023, she added: “Families and businesses now face months of worry. There is going to be less help with bills – but no-one knows who will lose out, by how much, or whether there will finally be a programme to fix Britain’s cold and draughty homes. This is not the reassurance working families need.”
Director of Policy & Communications at Independent Age, John Palmer, said: “Older people living on low and modest incomes were hoping to be reassured today, but frustratingly the Chancellor’s statement posed more questions than answers.
“Instead of ensuring stability, today only provided uncertainty. The review of the Energy Price Guarantee is extremely concerning. It’s no longer clear who will receive support beyond April 2023. Now millions of older people are wondering if they will be abandoned by the government and left with unaffordable energy bills and freezing homes next year.
“We know that many people in later life are already making dangerous cutbacks on heating and food. Our own polling revealed that 65% of older people plan to use less heating this winter.
“The government must ensure that its new targeted approach from next year helps older people in financial hardship, including the 850,000 older people who are currently entitled to Pension Credit but do not receive it.
“A fundamental, non-negotiable way to help older people’s incomes keep up with the price of essentials is for the government to uprate benefits and the State Pension with inflation. Today was another missed opportunity to offer this reassurance. Instead, millions of people over 65 will continue to live in fear that they will be made even poorer, when their budgets have been broken by the cost-of-living crisis.”
Will Hodson, consumer champion and founder of How To Save It commented:‘The Chancellor’s announcement that the Government will review the energy price cap in April is welcome. Supporting millionaires in paying their energy bills for two years was both morally and economically wrong.
“However, many households will be concerned about what this change means for them. The Government needs to make sure that their support is both good value to the taxpayer and provides sufficient, targeted support to those who really need it.’
Prime Minister confirms next steps for living with Covid-19
Vaccines will remain first line of defence against the virus with further boosters this spring for the most vulnerable
All remaining domestic covid regulations restricting public freedoms to end this week as part of the Living with Covid Plan
Vaccines will remain the first line of defence against Covid-19 as the Prime Minister sets out the Government’s plans to live with and manage the virus.
The UK was the first country in the world to authorise the use of the Pfizer and Oxford-AstraZeneca vaccines, the first European country to vaccinate 50% of its population and has delivered the fastest booster programme in Europe.
Over 31 million boosters have been administered across England and almost 38 million UK wide helping break the link between infections and hospitalisations. In England, the number of cases, hospitalisations and deaths continue to decline and are far below the levels of previous waves, with boosters offering strong protection against severe illness and hospitalisation.
Thanks to our hugely successful vaccination programme, the immunity built up in the population and our new antiviral and therapeutics tools, the UK is in the strongest possible position to learn how to live with Covid and end government regulation.
To save lives and protect the NHS, unprecedented measures were taken on a global scale that interfered with people’s lives and livelihoods. Billions of pounds were spent on supporting a locked down economy as the public stayed at home.
The Prime Minister has been clear that restrictions would not stay in place a day longer than necessary. The British public have made extraordinary sacrifices during the 2020 lockdowns, the Roadmap, and recent Plan B measures in response to the Omicron variant.
The Plan, published yesterday, sets out how vaccines and other pharmaceutical interventions will continue to form our first line of defence. The UK Government has accepted the JCVI recommendation to offer an additional booster to all adults aged over 75, all residents in care homes for older adults, and all over 12s who are immunosuppressed.
An autumn annual booster programme is under consideration, subject to further advice. Further detail on deployment on the spring booster programme will be set out in due course. The Government will continue to be guided by the JCVI on future vaccine programmes.
The plan covers four main pillars:
Removing domestic restrictions while encouraging safer behaviours through public health advice, in common with longstanding ways of managing other infectious illnesses
Protecting the vulnerable through pharmaceutical interventions and testing, in line with other viruses
Maintaining resilience against future variants, including through ongoing surveillance, contingency planning and the ability to reintroduce key capabilities such as mass vaccination and testing in an emergency
Securing innovations and opportunities from the COVID-19 response, including investment in life sciences
The public are encouraged to continue to follow public health advice, as with all infectious diseases such as the flu, to minimise the chance of catching Covid and help protect family and friends. This includes by letting fresh air in when meeting indoors, wearing a face covering in crowded and enclosed spaces where you come into contact with people you don’t normally meet, and washing your hands.
The Prime Minister yesterday confirmed domestic legal restrictions (in England – Ed.) will end on 24 February as we begin to treat Covid as other infectious diseases such as flu. This means:
The remaining domestic restrictions in England will be removed. The legal requirement to self-isolate ends. Until 1 April, we still advise people who test positive to stay at home. Adults and children who test positive are advised to stay at home and avoid contact with other people for at least five full days and then continue to follow the guidance until they have received two negative test results on consecutive days.
From April, the Government will update guidance setting out the ongoing steps that people with COVID-19 should take to be careful and considerate of others, similar to advice on other infectious diseases. This will align with testing changes.
Self-isolation support payments, national funding for practical support and the medicine delivery service will no longer be available.
Routine contact tracing ends, including venue check-ins on the NHS COVID-19 app.
Fully vaccinated adults and those aged under 18 who are close contacts are no longer advised to test daily for seven days and the legal requirement for close contacts who are not fully vaccinated to self-isolate will be removed.
Our testing programme has been a crucial part of our response to the virus. Over 2 billion lateral flow tests have been provided across the UK since 2020 ensuring people could stay safe and meet family and friends knowing they were free of the virus.
As set out in the Autumn and Winter Plan, universal free provision of tests will end as our response to the virus changes.
From the start of April, the government will end free symptomatic and asymptomatic testing for the general public.
Limited symptomatic testing will be available for a small number of at-risk groups and we will set out further details on which groups will be eligible shortly. Free symptomatic testing will also remain available to social care staff. We are working with retailers to ensure that everyone who wants to can buy a test.
The Test & Trace programme cost £15.7 billion in 2021/22. With Omicron now the dominant variant and less severe, levels of high immunity across the country and a range of strategies in place including vaccines, treatments, and public health knowledge, the value for taxpayers’ money is now less clear. Free testing should rightly be focused on at-risk groups.
The Government remains ready to respond if a new variant emerges and places unsustainable pressure on the NHS, through surveillance systems and contingency measures such as increased testing capacity or vaccine programmes. Our world-leading ONS survey will allow us to continue to track the virus in granular detail to help us spot any surges in the virus.
Further changes being made include: * Today the guidance has been removed for staff and students in most education and childcare settings to undertake twice weekly asymptomatic testing. * On 24 February, removing additional local authority powers to tackle local COVID-19 outbreaks (No.3 regulations). Local Authorities will manage local outbreaks in high-risk settings as they do with other infectious diseases. * On 24 March, the Government will also remove the COVID-19 provisions within the Statutory Sick Pay and Employment and Support Allowance regulations.
From 1 April, the UK Government will:
Remove the current guidance on voluntary COVID-status certification in domestic settings and no longer recommend that certain venues use the NHS COVID Pass.
No longer provide free universal symptomatic and asymptomatic testing for the general public in England.
Remove the health and safety requirement for every employer to explicitly consider COVID-19 in their risk assessments.
PM statement on living with COVID
Prime Minister Boris Johnson made a statement in the House of Commons on the government’s strategy for living with COVID.
And before I begin, I know the whole House will join me in sending our best wishes to Her Majesty the Queen for a full and swift recovery.
It is a reminder that this virus has not gone away, but because of the efforts we have made as a country over the past two years we can now deal with it in a very different way, moving from government restrictions to personal responsibility.
So we protect ourselves without losing our liberties – and maintaining our contingency capabilities so we can respond rapidly to any new variant.
Mr Speaker, the UK was the first country in the world to administer an approved vaccine, and the first European nation to protect half our population with at least one dose.
And having made that decision to refocus our NHS this Winter on the campaign to Get Boosted Now, we were the first major European nation to boost half our population too.
And it is because of the extraordinary success of this vaccination programme, that we have been able to lift our restrictions earlier than other comparable countries, opening up last summer, while others remained closed, and keeping things open this winter, when others shut down again, making us one of the most open economies and societies in Europe, with the fastest growth anywhere in the G7 last year.
And while the pandemic is not over, we have now passed the peak of the Omicron wave, with cases falling, hospitalisations in England now fewer than 10,000 and still falling, and the link between infection and severe disease substantially weakened.
Over 71 per cent of all adults are now boosted in England, including 93 per cent of those 70 and over, and together with the treatments and scientific understanding of the virus we have built up, we now have sufficient levels of immunity to complete the transition from protecting people with government interventions to relying on vaccines and treatments as our first line of defence.
As we have throughout the past two years, we will continue to work closely with the Devolved Administrations as they decide how to take forward their own plans, and today’s strategy shows how we will structure our approach in England around four principles.
First, we will remove all remaining domestic restrictions in law.
From this Thursday, 24 February, we will end the legal requirement to self-isolate following a positive test, and so we will also end self-isolation support payments, although Covid provisions for Statutory Sick Pay can still be claimed for a further month.
We will end routine contact tracing, and no longer ask fully vaccinated close contacts and those under 18 to test daily for seven days.
And we will remove the legal requirement for close contacts who are not fully vaccinated to self-isolate.
Until 1 April, we will still advise people who test positive to stay at home. But after that, we will encourage people with Covid-19 symptoms to exercise personal responsibility, just as we encourage people who may have flu to be considerate to others.
Mr Speaker, it is only because levels of immunity are so high and deaths are now, if anything, below where you would normally expect for this time of year, that we can lift these restrictions.
And it is only because we know Omicron is less severe, that testing for Omicron on the colossal scale we have been doing is much less important, and much less valuable in preventing serious illness.
We should be proud that the UK established the biggest testing programme per person of any large country in the world.
But this came at a vast cost.
The Testing, Tracing and Isolation budget in 2020-21 exceeded the entire budget of the Home Office.
It cost a further £15.7 billion in this financial year, and £2 billion in January alone at the height of the Omicron wave.
We must now scale this back.
From today, we are removing the guidance for staff and students in most education and childcare settings to undertake twice weekly asymptomatic testing.
And from 1st April, when Winter is over and the virus will spread less easily, we will end free symptomatic and asymptomatic testing for the general public.
We will continue to provide free symptomatic tests to the oldest age groups and those most vulnerable to Covid.
And in line with the practice in many other countries, we are working with retailers to ensure that everyone who wants to can buy a test.
From April 1st, we will also no longer recommend the use of voluntary Covid-status certification, although the NHS app will continue to allow people to indicate their vaccination status for international travel.
And Mr Speaker, the government will also expire all temporary provisions of the Coronavirus Act.
Of the original 40, 20 have already expired, 16 will expire on 24 March, and the last 4 relating to innovations in public service will expire six months later, after we have made those improvements permanent via other means.
Second, we will continue to protect the most vulnerable with targeted vaccines and treatments.
The UK government has procured enough doses of vaccine to anticipate a wide range of possible JCVI recommendations. And today we are taking further action to guard against a possible resurgence of the virus, accepting JCVI advice for a new Spring booster offered to those aged 75 and over, older care home residents, and those over 12 who are immunosuppressed.
The UK is also leading the way on antivirals and therapeutics, with our AntiVirals Task Force securing a supply of almost 5 million – more per head than any other country in Europe.
Third, SAGE advise there is considerable uncertainty about the future path of the pandemic, and there may of course be significant resurgences.
They are certain there will be new variants and it’s very possible those will be worse than Omicron.
So we will maintain our resilience to manage and respond to these risks, including our world-leading ONS survey, which will allow us to continue tracking the virus in granular detail, with regional and age breakdowns helping us spot surges as and where they happen, and our laboratory networks will help us understand the evolution of the virus and identify any changes in characteristics.
We will prepare and maintain our capabilities to ramp up testing.
We will continue to support other countries in developing their own surveillance capabilities, because a new variant can emerge anywhere.
And we will meet our commitment to donate 100 million vaccine doses by June, as our part of the agreement at the UK’s G7 summit to provide a billion doses to vaccinate the world over the next year.
In all circumstances, our aim will be to manage and respond to future risks through more routine public health interventions, with pharmaceutical interventions as the first line of defence.
Fourth, we will build on the innovation that has defined the best of our response to the pandemic.
The Vaccines Task Force will continue to ensure the UK has access to effective vaccines as they become available, already securing contracts with manufacturers trialling bi-valent vaccines, which would provide protection against Covid variants.
The Therapeutics Task Force will continue to support seven national priority clinical trial platforms focused on prevention, novel treatments and treatment for long-Covid.
We are refreshing our biosecurity strategy to protect the UK against natural zoonosis and accidental laboratory leaks, as well as the potential for biological threats emanating from state and non-state actors.
And building on the Five Point Plan I set out at the United Nations and the agreements reached at the UK’s G7 last year, we are working with our international partners on future pandemic preparedness, including through a new pandemic treaty, an effective early warning system or Global Pandemic Radar, and a mission to make safe and effective diagnostics, therapeutics and vaccines available within the first 100 days of a future pandemic threat being identified.
And we will be hosting a global pandemic preparedness summit next month.
And Mr Speaker, Covid will not suddenly disappear.
So those who would wait for a total end to this war before lifting the remaining regulations, would be restricting the liberties of the British people for a long time to come.
This government does not believe that is right or necessary.
Restrictions pose a heavy toll on our economy, our society, our mental wellbeing, and the life chances of our children.
And we do not need to pay that cost any longer.
We have a population that is protected by the biggest vaccination programme in our history.
We have the antivirals, the treatments, and the scientific understanding of this virus, and we have the capabilities to respond rapidly to any resurgence or new variant.
And Mr Speaker it is time to get our confidence back.
We don’t need laws to compel people to be considerate of others.
We can rely on that sense of responsibility towards one another, providing practical advice in the knowledge that people will follow it to avoid infecting loved ones and others.
So let us learn to live with this virus and continue protecting ourselves without restricting our freedoms.
And in that spirit, I commend this Statement to the House.
PM statement at Covid press conference
The Prime Minister gave a press conference on the plan to live with COVID-19
Good evening, when the pandemic began, we had little knowledge of this virus and none about the vaccines and treatments we have today.
So there was no option but to use government regulations to protect our NHS and save lives.
But those restrictions on our liberties have brought grave costs to our economy, our society, and the chances of our children.
So from the outset, we were clear that we must chart a course back towards normality as rapidly as possible, by developing the vaccines and treatments that could gradually replace those restrictions.
And as a result of possibly the greatest national effort in our peacetime history, that is exactly what we have done.
Thanks to our brilliant scientists.
Thanks to the extraordinary men and women of our NHS and to every one of you who has come forwards to get jabbed and get boosted – the United Kingdom has become the first country in the world to administer an approved vaccine, and the fastest major European nation to roll out both the vaccines and the booster to half our population.
We have emerged from the teeth of the pandemic before many others, retaining one of the most open economies and societies in Europe and the fastest growth in the G7 last year.
And while the pandemic is not over, we have passed the peak of the Omicron wave, with cases falling, and hospitalisations in England now fewer than 10,000 and still falling, and so now we have the chance to complete that transition back towards normality, while maintaining the contingencies to respond to a resurgence or a new variant.
As we have done throughout the past two years, we will continue to work with the Devolved Administrations as they decide how to take forwards their own plans.
In England, we will remove all remaining domestic restrictions in law.
From this Thursday, it will no longer be law to self-isolate if you test positive, and so we will also end the provision of self-isolation support payments, although Statutory Sick Pay can still be claimed for a further month.
If you’re a fully vaccinated close contact or under 18 you will no longer be asked to test daily for seven days.
And if you are close contact who is not fully vaccinated you will no longer be required to self-isolate.
Until 1 April, we will still advise you to stay at home if you test positive.
But after that, we will encourage people with Covid symptoms to exercise personal responsibility, just as we encourage people who may have flu to be considerate towards others.
It is only because levels of immunity are so high and deaths are now, if anything, below where you would normally expect for this time of year that we can lift these restrictions.
And it is only because we know Omicron is less severe, that testing for Omicron on the colossal scale we have been doing is now much less valuable in preventing serious illness.
We should be proud that the UK established the biggest testing programme per person of any large country in the world.
But its budget in the last financial year was bigger than the Home Office – and it cost – the testing programme cost – £2 billion just last month alone.
So we must scale back and prioritise our resources for the most vulnerable.
From today, staff and students in most education and childcare settings will no longer be asked to undertake twice weekly asymptomatic testing.
And from 1st April, we will end free symptomatic and asymptomatic testing for the general public.
But we will continue providing free symptomatic tests to those at the highest risk from Covid.
And in line with the practice of many other countries, we are working with retailers to ensure you will always be able to buy a test.
We should be clear the pandemic is not over and there may be significant resurgences.
Our scientists are certain there will be new variants and it’s very possible that those will be worse than Omicron.
So we will continue to protect the most vulnerable with targeted vaccinations and treatments and we have bought enough doses of vaccine to anticipate a wide range of possible JCVI recommendations.
Today this includes a new Spring booster, which will be offered to those aged 75 and over, older care home residents, and those over 12 who are immunosuppressed.
We will also retain disease surveillance systems and contingency measures which can ensure our resilience in the face of future waves or new variants.
And we will build on the innovations that defined the very best of our response to the pandemic, including continuing the work of the Vaccines Task Force, which has already secured contracts with manufacturers trialling new vaccines which could provide protection against new variants.
Today is not the day we can declare victory over Covid, because this virus is not going away.
But it is the day when all the efforts of the last two years finally enabled us to protect ourselves while restoring our liberties in full.
And after two of the darkest grimmest years in our peacetime history, I do believe this is a moment of pride for our nation and a source of hope for all that we can achieve in the years to come.
Thank you very much.
REACTION:
Responding to the statement from the Prime Minster on the Government’s ‘Living with Covid’ strategy, which includes the removal of free Covid-19 tests for the public from 1 April in England, Dr Chaand Nagpaul, BMA council chair, said: “Today’s announcement fails to protect those at highest risk of harm from Covid-19, and neglects some of the most vulnerable people in society.
“We recognise the need, after two years of the pandemic, to begin thinking about how we adjust our lives to manage living alongside Covid-19, but as the BMA has persistently said the decision to bring forward the removal of all protective measures while cases, deaths and the number of people seriously ill remain so high is premature.
“Living with Covid-19 must not mean ignoring the virus all together – which in many respects the Government’s plan in England seems to do.
“On the one hand the Government says it will keep monitoring the spread of the virus, and asks individuals to take greater responsibility for their own decisions, but by removing free testing for the vast majority of the population on the other, ministers are taking away the central tool to allow both of these to happen.
“Far from giving people more freedom, today’s announcement is likely to cause more uncertainty and anxiety.
“Crucially, it will create a two-tier system, where those who can afford to pay for testing – and indeed to self-isolate – will do so, while others will be forced to gamble on the health of themselves and others.
“Covid-19 has already disproportionately impacted those on lower incomes, in insecure employment and from ethnic minorities. This move threatens to exacerbate these health inequalities.
“People will want to do the right thing, and not knowingly put others at risk if they are infected, but how can they make such a judgement if they have no way of knowing if they’re carrying the virus or not? This is especially important for those who come into contact with people who are at much greater risk of becoming ill with Covid-19, such as elderly relatives or those who are clinically vulnerable.
“Providing free tests to clinically vulnerable people – and only once they develop symptoms and are potentially very unwell – but not providing any free tests to friends or family who come into contact with them is completely illogical, as the priority should be protecting them from infection in the first place. The same goes for care home staff, who will only be tested if they have symptoms, by which time they could have passed on the virus to vulnerable residents.
“There must also be urgent clarity around testing provision for NHS workers. People visit hospitals and surgeries to get better, and not to be exposed to deadly viruses, and the continuation of testing for healthcare workers is invaluable in protecting both staff and patients.
“That plans are underway for a new booster programme is sensible but we must not – as we have continued to state – rely solely on vaccination to protect the nation. The necessity for further boosters underlines that Covid-19 will continue to present a challenge for healthcare services and wider society for potentially many years to come. And while the Prime Minister talks about Omicron resulting in a mild illness for most, others will still become very unwell with Covid-19, and an estimated more than one million people continue to live with long-Covid – themselves needing ongoing care.
“As part of ‘learning to live with Covid’, protections must be maintained for the most vulnerable, including the provision of enhanced face masks, and clear guidance for both patients and clinicians.
“Meanwhile, all people must be financially supported to do the right thing, and the removal of self-isolation payments, and then access to statutory sick pay in a months’ time, is incredibly concerning, as it will mean people cannot afford to stay at home if they are unwell. In healthcare settings, enhanced infection prevention measures – including mask-wearing for patients and enhanced PPE for staff – must remain, while in the longer-term premises are in desperate need of improvements, such as higher standards of ventilation, to limit the spread of infections.
“And with such a planned scale back of free testing, it is imperative that the Government keeps its commitment to continue other surveillance methods, including the ONS infection survey1, and to not hesitate to act on worrying surges of infections or new dangerous variants.”
Responding to today’s ending of Covid restrictions, Morgan Vine, Head of Policy and Influencing at older people’s charity Independent Age, said: “We know that many people aged 65 and over are worried about the upcoming relaxation of Covid restrictions, particularly the ending of self-isolation.
“We are concerned that this sudden change in direction of public safety is likely to increase anxiety among older people, and even cause some to shield themselves and limit daily activities.
“Our research revealed that the challenges faced by those in later life due to the pandemic have worsened many people’s mental health with many people we spoke to expressing fear at catching the virus in public settings. If the requirement to isolate is removed at the same time free lateral flow tests for most age groups stop, this fear is likely to increase as is the likelihood of coming into contact with someone who has Covid.
“Recent polling showed that a majority (56%) of older people thought isolating should always be a requirement for somebody who has tested positive for Covid, and a further 27% said it should at least be a requirement for the next few months.
“It’s essential that older people are able to live their daily lives safely. Now the government has announced the relaxation, it must clarify how it plans to protect those in later life from the virus.”
First Minister Nicola Sturgeon will lay out Scotland’s response when she addresses the Holyrood parliament this afternoon.
So Boris Johson urges ‘personal responsibility’? Yes, Boris ‘Partygate’ Johnson – the great leader who would not even follow the rules he wrote himself? Oh, the irony! It really would be funny it it wasn’t quite so serious.#covid #gieyetheboak
