Millions of households across England in council tax bands A to D are set to receive a one-off £100 Household Energy Payment from January, under measures announced in the latest UK Budget.
John Healey said the Budget would provide households with some breathing space amid ongoing financial pressures. The payment will be funded through a temporary increase in the tax surcharge on banks, which will rise from 3% to 6%.
Another key measure is the planned abolition of gas standing charges across England, Scotland and Wales in 2027, or as soon as possible afterwards. Under the proposal, fixed daily charges will be removed and incorporated into the unit price of energy. This means households will pay these costs through the amount of gas they consume rather than through a separate daily fee.
The Budget also extends the temporary 5p-per-litre cut in fuel duty on petrol and diesel until July. Introduced by former prime minister Rishi Sunak in 2022, the reduction had been scheduled to begin phasing out in January. The extension will keep fuel duty at 52p per litre, providing continued relief for motorists.
Meanwhile, the national minimum wage is scheduled to increase by 3.9% in April. However, the increase does not advance Labour's manifesto commitment to narrow the gap between minimum wage rates for older and younger workers.
Pensioners are also set to benefit from a 3.9% increase in the state pension, in line with average earnings growth. The rise follows the government's triple lock policy, which guarantees annual increases based on the highest of average earnings growth, inflation or 2.5%.
The measures cover energy bills, transport costs, wages and retirement incomes. Their overall impact on household finances will depend on individual circumstances, energy consumption and eligibility for support.
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