John Healey has announced a £100 payment for around 20 million households in England in an effort to ease pressure on family finances as rising energy costs and conflict in the Middle East deepen concerns over the cost of living.
The Chancellor said households in council tax bands A to D would receive the money directly into their bank accounts, with the scheme costing the government £2.6bn.
The measure forms part of a wider package of energy support unveiled in the autumn Budget, including an extension of the VAT cut on electricity until July, which is expected to reduce the annual price cap by £50. The government will also extend the fuel duty cut until July 2027.
Addressing MPs, Healey acknowledged the growing anxiety over household bills.
“I know that with the conflict in the Middle East, rising energy bills are a real worry,” he said. “I know that people look to Government at times like this, not to solve all their problems, but to give them a bit of breathing space.”
The payments offer short-term relief, but their scale underlines the continuing pressure on ministers to shield households from volatile energy costs without undermining the public finances.
Healey also reaffirmed his commitment to the fiscal rules established by his predecessor, Rachel Reeves, under which day-to-day government spending must be funded through taxation rather than borrowing.
That commitment leaves the Chancellor facing a difficult balancing act: supporting households while maintaining fiscal discipline, with potential tax increases looming as the government seeks to meet its spending commitments.
Leave a Comment