HEALEY ANNOUNCES £100 ENERGY PAYMENTS FOR 20 MILLION HOUSEHOLDS

John Healey announced a £100 payment to help households with energy bills this winter in his autumn Budget. The chancellor said around 20 million households in council tax bands A to D would receive the money in their bank accounts. He put the cost of the measure at £2.6 billion. Referring to the conflict in the Middle East, Healey said “rising energy bills are a real worry” and that the payment would give families “a bit of breathing space”.

Healey said the payment would reach about 80% of households in England. The Budget also provides equivalent funding for Scotland and Wales, where the governments can decide whether to introduce the same measure. Healey extended the VAT cut on electricity bills until July; he said the extension would take £50 off the annual energy price cap. He also extended the fuel duty cut until July 2027, cancelling increases that had previously been planned.

The Budget includes a temporary rise in the tax paid by banks, which Healey linked to the household payment. Healey also announced a two percentage point increase in tax on income from property and savings. Other measures include a 3.9% rise in the minimum wage. Healey said his Budget set out the Labour government’s plans on defence, energy, welfare and entrepreneurship.