Politics · United Kingdom · 6 hrs ago
Healey’s first Budget offers £100 energy support to millions of households
Chancellor John Healey announced a one-off £100 energy payment in his first UK Budget.
It is for households in council tax bands A to D in England, with Wales saying it will match the payment and Scotland planning to replicate it.
The payment is intended to ease winter energy costs, and is due from January.
The government will fund it partly through a temporary increase in tax on big banks’ profits.
Healey also plans to scrap gas standing charges during 2027, shifting those costs to the price per unit of gas.
Income tax thresholds will stay frozen, while the planned cut to the cash ISA allowance has been dropped.
The Budget also raises the minimum wage and offers tax relief to some businesses, but major decisions on defence and welfare are delayed until next year.
Chancellor John Healey announced a one-off £100 energy payment for households in council tax bands A to D in England.
The payment is to be funded by increasing the tax on big banks’ profits from 3% to 6%.
Wales said it would match the payment, while the Scottish government planned to replicate it.
Healey also announced changes to energy standing charges, business rates and savings taxes.
Conservative leader Kemi Badenoch said the plans were “not bold enough”.
- Who
- Chancellor John Healey announced the measures. Households in council tax bands A to D are to receive the payment.
- What
- Healey’s first Budget includes a one-off £100 energy payment funded by a higher tax on big banks’ profits.
- When
- Announced on Wednesday, 28 October 2026. The payment is due from January.
- Where
- The payment is guaranteed in England; Wales said it would match it, and Scotland planned to replicate it.
- Why
- Healey said he wanted to give hard-pressed families “breathing space now” as the economy faced global economic storms.
UK government
Conservative Party
Overall Budget
UK government
Healey said the measures would help families and businesses and give households “breathing space now”.
Conservative Party
Kemi Badenoch said the plans were “not bold enough” and criticised government spending, borrowing, taxation and welfare.
Bank tax
UK government
The government raised the tax on big banks’ profits from 3% to 6% to fund the payment.
Conservative Party
Not stated
John Healey delivered his first Budget and announced the £100 energy payment and higher tax on big banks’ profits.
The £100 payment is due for eligible households in England.
Gas standing charges in England, Scotland and Wales are due to be scrapped during the year or as soon as possible after.
The tax on high-stakes gambling machines is due to rise from 20% to 25%.
The temporary increase in the tax on big banks’ profits is due to end.
- Energy payment
- One-off £100 for households in council tax bands A to D in England
- Bank tax
- Increased from 3% to 6%
- Bank tax period
- January 2027 to April 2028
- Gas standing charges
- Due to be scrapped during 2027 or as soon as possible after
- Fuel duty cut
- 5p reduction extended to July
- Growth forecast
- OBR forecast 1% growth for next year
8 sources
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What people are saying
Those are the storms we face. We can't wish them away. We must choose the course we steer through them
not bold enough
Lower users will pay less
The big news on energy is in January if you live in a household that pays council tax band A to D your house will get a hundred pounds of energy support paid to you by direct debit.