How the Budget affects you
The UK government has announced a new budget package to assist families with rising energy costs, including a one-off £100 payment for specific council tax bands. The plan also extends VAT cuts on electricity and outlines future changes to gas standing charges.
Why it matters
This policy directly impacts the disposable income of millions of UK households facing significant energy price hikes in early 2027.
Image source, Getty Images By Kevin Peachey Cost of living correspondent Published 28 October 2026, 13:45 GMT Updated 9 minutes ago Families facing cost-of-living pressures are being offered some help, or "breathing space" as Chancellor John Healey is calling it.
The help comes as prices are rising faster than expected with annual energy bills in particular likely to increase by around £300 or more in January.
Here's how the key announcements in the Budget affect you and your money.
If you are living in a home in council tax bands A to D in England, you will receive a one-off £100 "Household Energy Payment" from January, funded by extra tax on banks.
It will be paid directly into your bank account.
Headlinne story · 3 newsrooms
Chancellor John Healey Delivers First Budget With Targeted Support and Tax Changes
What every outlet reported, where they differ, and how each framed it →
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