On 26 May, the Chancellor of the Exchequer Rishi Sunak delivered a cost-of-living support package to Parliament – outlining £15bn of new measures and an Energy Profits Levy. The support package is to compliment the £22bn package announced previously, taking total funding to £37bn. Key commitments include the plan to double the Energy Bills Support Scheme that will see households receive £400 of support with their energy bills in the form of a one-off grant, which will no longer be recovered through higher bills in following years. The government set out additional support measures for low-income and vulnerable households. This includes a one-off £650 cost-of-living payment to those on means tested benefits; a one-off £350 pensioner cost-of-living payment; a one-off £150 payment to around 6mn people across the UK who receive certain disability benefits; and an extra £500mn of local support, through the Household Support Fund which helps those most in need with payments towards the rising cost of food, energy and water bills. In addition, the government outlined its new Energy Profits Levy, a surcharge on the profits of oil and gas companies operating in the UK and the UK Continental Shelf that will be used to fund the cost-of-living package. The levy will be applied to profits arising on or after 26 May 2022, with companies who have an accounting period that straddles that date to be required to apportion their profits. It will be charged at 25%, taking the headline rate of tax on those companies’ profits from 40% to 65%. The government noted that the levy is a temporary measure and will be phased out when oil and gas prices return to historically more normal levels. The government will also introduce new 80% Investment Allowance to encourage firms to invest in oil and gas extraction in the UK, meaning that businesses will overall get a 91p tax saving for every £1 they invest. It said this will nearly double the tax relief available to these companies.