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BusinessPublished by BBC Business • 10/28/2026, 4:43:35 PMOpen Original Report (BBC Business) ↗

Your pay, energy bills and savings: How the Budget affects you

Families facing cost-of-living pressures are being offered some help, or "breathing space" as Chancellor John Healey is calling it.

Your pay, energy bills and savings: How the Budget affects you
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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 hundreds of pounds in January.

Here's how the key announcements in the Budget affect you and your money.

More from the original report

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.

Council tax bands are listed below - you can check which one you are in by looking at your annual bill or checking the government's website , external , although that was struggling to cope with traffic after the announcement.

Administrations in Scotland, Wales and Northern Ireland will receive the equivalent funding, and they will decide whether to introduce the same payment.

This is designed to help with soaring energy bills, with some forecasts suggesting a typical annual bill could rise by £400 or so to £2,100 in January the saving will be only a portion of that. Although it's designated for energy bills, you can spend the money on anything you wish.

The VAT cut on electricity bills, which was introduced in October, will also be extended to July. It was due to end in April.

The fee for connecting to your gas supply so called standing charges will be scrapped in England, Scotland and Wales, next year "or as soon as possible after", the chancellor said.

These fixed daily charges will then be shifted onto the price you pay for each unit of energy.

The Treasury calculates that 60% of households will save an average of £45 a year, with lower users gaining the most. But the saving will come after the projected big rise in bills in January.

Higher users - in the biggest houses but also large, low-income families - will pay more than they currently do.

The government wants to extend reforms to electricity standing charges later.

The 5p "temporary" cut in fuel duty on…

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