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"Standards Hit A Historical Fall" As Rishi Sunak Unveils Spring Statement

Rishi Sunak unveiled his spring statement, much to the anger of opposition parties in parliament.

The spring statement is being criticized as experts say that poverty would rise (Especially among those families with children), by 1.3 million.

The spring statement also comes as a major blow to the people, given the recent rise in energy and gas amidst the Russian invasion of Ukraine via tit for tat sanctions.

Rishi Sunak has indicated that the government could intervene on energy bills before autumn, if the household bills rise again in October.

When asked in an interview with Radio 4, Rishi Sunak told it's today program: “Yes, of course we'll have to see where we are by the autumn and it's right for people to recognize that they are protected between now and the autumn because of the price cap”.

When pressed on what he meant by “Yes, we will intervene before October”.

Rishi Sunak said: “I always keep everything under review, and the government, as it's shown over the past two years, is always responsive to what's happening.

But I would say with energy prices, you know, they're very volatile, and I don't think you, or I, or anyone else has any certainty about what will happen in October right now.”

The key points from the spring statement are as follows:

Rishi Sunak cut fuel duty by 5p per litre, coming into effect at 18:00 (6pm) until next March.

The income threshold for people to start paying National Insurance will rise to £12,570 per year in July, which Rishi Sunak says: “This is worth over £330 per year for millions of workers”.

Rishi Sunak pledged to cut the basic rate of income tax from 20p to 19p in the pound before the end of this parliament in 2024.

The Employment Allowance, which gives relief to smaller businesses National Insurance payments, will increase from £4,000 to £5,000 from April.

And local authorities will get an extra £500 million for the Household Support Fund from April, creating a £1 billion fund to help vulnerable households with rising living costs.

Opposition parties and a number of charities said that the measures did not go far enough to help the lowest earners cope with the cost of living crisis.

Shadow chancellor Rachel Reeves has said that she is “Absolutely gobsmacked”, that Rishi Sunak didn't choose to increase benefits and pensions yesterday to help with the cost of living crisis.

Also stating that Rishi Sunak should've scrapped the 1.25% rise to National Insurance which comes into effect in April.

All this means that households can or could hit the biggest fall in living standards since records began in 1956.

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