“This is a no-cost move over the longer term, as everyone will pay back the money over the next five years. The government could also decide to defer when the repayments begin, as they are due to start from April at a rate of £40 a year.
“Now it looks like higher energy costs are here for longer, it doesn’t look very wise to have the repayments starting so soon, when people will still be battling higher bills.”
Interactive Investor also said that the price of fuel is an escalating problem that needs to be addressed and the chancellor could intervene by reducing fuel duty which is currently levied at a flat rate of 57.95p per litre for both petrol and diesel.
Likewise Adrian Lowery, personal finance expert at investing platform Bestinvest, agreed as he said it is more likely we will see a boost to the sort of measures already announced, or to universal credit, which are aimed at helping lower income households.
"Could the energy “loan” be turned into a grant? Could the council tax rebate be increased?" Lowry asked.
"One thing seems very probable: a cut to fuel duty to relieve the pain of soaring petrol and diesel prices. Overall, however, whether the UK’s economy and households need more serious fiscal assistance will be determined by what is currently a big unknown: how war in Ukraine progresses."
Pensions
Pensions is another topic that always seems to crop up and Cameron said the chancellor could offer some additional support for state pensioners.
“After the government temporarily removed the earnings component of the state pension triple lock, state pensioners are due to receive an increase of 3.1 per cent in April, based on the rate of inflation last September,” he said.
However, given the current level of inflation is 5.5 per cent, there is a difference in the figures.
“Setting the inflation component in September when the state pension is not increased until April has meant the pension uprating hasn’t allowed for significant rises since September,” he said.
“While these should be reflected in the April 2023 increase, many state pensioners will be left struggling.
“We’ll be on the lookout for any temporary targeted support the Chancellor may grant. We’d welcome the Chancellor committing to a reinstatement of the earnings component in the triple lock from next April.”
Many of the Budgets over the past decade have been preceded by rumour and speculation about the future of higher-rate pension tax relief.
Reducing pension tax relief would be a short-term boost for the coffers for the government, but it could also create problems further down the economy by disincentivising saving, according to some commentators.
