Chancellor Announces £100 Energy Payment for Millions in Budget 2026
In a bid to alleviate the financial burden on households, Chancellor John Healey has announced a £100 one-off payment for millions of people in England in council tax bands A to D. The payment, which will be made in January, is part of the government's efforts to support households struggling with the cost of living.
The payment will be funded by the government and will be allocated to devolved governments, with Wales and Scotland planning to match and replicate the payment, respectively. The move is expected to benefit around 20 million households in England, with the majority of households in certain areas, such as Liverpool and Hull, set to receive the payment.
However, not all households will be eligible, with around 5 million households in England falling outside of the lower council tax valuation bands A to D. The proportion of households who will receive the payment also varies significantly across England, with some areas, such as Kensington and Chelsea, having a lower eligibility rate.
The government has also announced plans to reform the tax system, with banks facing a 3% surcharge on profits, which will be "time-limited". Additionally, there will be tax rises on some savings and rental profits.
The Office for Budget Responsibility (OBR) has forecast that living standards are set to rise by just 1% over the whole post-Covid decade, with the Chancellor acknowledging that the current economic situation is "grim".
The budget has been met with a mixed reaction from politicians, with some welcoming the measures, while others have expressed disappointment at the lack of bold action.
