The UK Budget presented by John Healey announced 100 pounds energy payments for eligible households in England, with the 2.6 billion pounds programme reaching up to 20 million homes. Payments are planned from January. A temporary increase in the bank corporation tax surcharge helps fund the support, while electricity and fuel tax relief also receive extensions. The higher bank surcharge lasts 15 months.
UK Chancellor John Healey announced a household energy payment in the 28 October Budget. Eligible households in England in council tax bands A–D are due to receive 100 pounds directly into their bank accounts from January. The 2.6 billion pound programme is intended to reach up to 20 million homes with help toward energy bills.[1], [2]
The government is temporarily increasing the bank corporation tax surcharge from 3 percent to 6 percent to help finance the payments. The higher surcharge runs from 1 January 2027 to 31 March 2028, a period of 15 months. It sits alongside the 25 percent corporation tax rate paid by banks. Healey said he was asking banks to contribute more toward supporting households.[1], [2]
The Budget extends the electricity value-added-tax cut to July. The Treasury expects this to lower the annual price cap by about 50 pounds in April. The 5-pence fuel-duty reduction and freeze continue until 1 July 2027. Devolved administrations receive funding through the Barnett formula, the mechanism for allocating funding to those administrations.[1]
The Treasury said the Office for Budget Responsibility (OBR), the UK fiscal watchdog, raised its growth forecast for this year to 1.2 percent. Additional debt interest compared with the spring forecast averages 14 billion pounds annually. The Budget retains headroom under the current-budget rule of 15 billion pounds in 2029–30 and 22 billion pounds in 2030–31.[1]
