UK must pay household aid without discouraging investment

LONDON (Reuters) – Britain must pay for increased household support in a way that does not discourage investment, Cabinet Minister Steve Barclay said on Thursday ahead of the expected announcement of new measures to deal with the rising energy bills.

“In terms of payment, as we look at the balance between what is done through debt and what is done through revenue collection, we need to do it in a way that does not discourage investment,” Barclay told Sky. News.

Later Thursday, Finance Minister Rishi Sunak will present more details on the government’s response to the rising cost of living pressures facing households.

This is expected to include a £10bn ($12.6bn) support package, an energy sector source said, funded in part by a one-off tax on oil and gas producing companies .

Barclay said the government decided to act after the energy regulator announced earlier this week that a cap on gas and electricity bills was to rise by a further 40% in October.

(Reporting by Muvija M, Writing by William James, Editing by Elizabeth Piper)