12 Ways The 2026 Budget Might Actually Affect You

John Healey’s first Budget promised “breathing space”.

Today, Chancellor John Healey has unveiled his first-ever Budget, suggesting it could offer welcome “breathing space” to those struggling with the cost of living.

It mentioned everyday bills – like electricity and gas charges, as well as lower tariffs on supermarket staples – alongside pension allowances and attempts to close the gender “pay gap”.

But what do the new rules actually mean for most people?

Here’s how the 2026 Budget might affect your wallet:

1) You may be entitled to help with your energy bill...

If your home is in the council tax band A-D, you will be eligible for a one-off ‘Household Energy Payment’ of £100 from January. Healey said this will be paid directly into people’s bank accounts via a £2.6 billion scheme.

“The Scottish, Welsh and Northern Ireland governments will receive their share of this funding, and I call on them to do the same and give people in all nations of the UK breathing space on their energy bills,” he added.

Your council tax band should be on your bills, but if you can’t find those, you can search for your postcode on the Government’s page.

2) ...and VAT cuts will remain in place for the foreseeable

Healey also said the existing VAT cuts on electricity would continue into next July, “taking £50 off the annual price cap”.

3) Gas standing charges will be cut

Healey announced that he would scrap gas standing charges hours before the Budget, with the fixed fees being moved over to the cost of actual units used.

Gas standing charges usually cost £108 a year no matter how much gas a household uses.

This change is estimated to save........

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