In his debut Budget, Chancellor John Healey has introduced a one-off £100 payment to assist millions of households with rising energy costs. The initiative, intended to provide immediate financial relief and future stability amid turbulent global economic conditions, will be funded by raising the tax on major bank profits from 3% to 6%. According to the chancellor, He wanted to give hard-pressed families “breathing space now” and “hope for the future” as the UK economy is battered by “global economic storms”. Healey announces £100 energy bill help for millions and raises taxes on banks and some savers.
Addressing a crowded House of Commons alongside Prime Minister Andy Burnham, Healey detailed a suite of measures designed to reduce the cost of living. Eligible recipients include those in council tax bands A through D in England. Wales has confirmed it will match the payment, while the Scottish government intends to replicate the support. With Prime Minister Andy Burnham and other frontbench colleagues cheering him on, the chancellor unveiled a string of measures aimed at cutting the cost of living, in an hour-long speech to a packed House of Commons.
Beyond direct payments, the government plans to eliminate gas standing charges across England, Scotland, and Wales during 2027. These fixed daily fees will be integrated into unit pricing, a move that will shift the burden toward higher energy consumers. Additionally, the temporary 5p fuel duty reduction for petrol and diesel will remain in place until July, and minimum wage rates are scheduled to rise by 3.9% in April, though disparities between age groups will persist. Although there will be no progress on narrowing the gap between rates for older and younger workers, increasing minimum wage rates by 3.9% in April.
Healey also announced increased levies on high-stakes gambling machines and tax incentives for high street businesses. However, he noted that major decisions regarding welfare and defence spending are deferred until next year.
The response from the opposition was critical, with Conservative leader Kemi Badenoch characterizing the strategy as insufficient. She argued the government remains “overspent, overborrowed, overtaxed and drowning in an out-of-control welfare system,” maintaining that the Chancellor’s plans lack the necessary boldness to address the UK’s economic challenges.
