John Healey Unveils £2.6 Billion Energy Support Package
Chancellor John Healey announced £100 payments for 20 million households and the removal of gas standing charges to combat rising winter energy costs.
Chancellor of the Exchequer John Healey unveiled a £2.6 billion energy support package during his maiden budget to combat high costs driven by global economic instability and conflict in the Middle East. The initiative provides £100 payments in January to approximately 20 million households in council tax bands A-D with home values under £232,000. The scheme includes renters but excludes landlords and second-home owners.
To lower long-term bills, Healey announced the removal of standing charges on gas bills, shifting those costs to unit rates, and extended the VAT cut on electricity bills through July. He also stated intentions to consult with Ofgem regarding the removal of electricity standing charges, though he noted that process would be more complex. These measures aim to align British energy costs with those in Europe by reforming how the United Kingdom covers grid upgrades and renewable energy.
Prime Minister Andy Burnham defended the payments as real help intended to give families breathing space. However, the Resolution Foundation and the End Fuel Poverty Coalition criticized the support as badly targeted and insufficient. Critics noted that the £100 payment would barely offset a forecast 22% rise in energy prices for January, with typical annual bills expected to reach £1,750 in 2026-27, surpassing levels seen during the 2022-23 energy crisis.
