Taxpayer backed support for gas hikes will cost £3 million

£300 payments for families and those on low incomes

Almost £3 million of taxpayers’ money will be used to support people financially when gas bills are hiked on Friday.

Manx Gas is increasing its tariffs by 58 per cent – it follows a 27.5 per cent increase in October.

That means – in real terms – gas bills will have increased by more than 100 per cent compared to the pre-price hike period.

In response Treasury is introducing two support schemes to help those on low incomes and families who receive child benefit.

Energy Support Payment:

• £300 available to households responsible for housing costs and who are receiving income related benefits
• People whose incomes are marginally above the levels at which Income Support is payable may be able to claim a portion of the payment
• Paid automatically in April to those in receipt of Income Support, Employed Person’s Allowance and Income Based Jobseeker’s Allowance
• This payment will cost Treasury £1 million and benefit up to 3,500 household

Family Support Payment:

• £300 available to families receiving full rate Child Benefit
• Reduced rate payment to those whose household income is between £50,000 and £80,000
• An additional £50 will be paid to families with at least two children and £100 for families with at least three children
• Expected to be paid in May
• This payment will cost Treasury £1.8 million and benefit more than 6,000 families

Treasury Minister David Ashford told Manx Radio he wished the gas rises, which come into effect on Friday, 1 April, were an April Fool’s Day prank:

So what do Manx Gas customers think of the incoming tariff increases? 

John Moss headed into Douglas to find out: