Chancellor John Healey Unveils £100 Energy Rebate and Bank Levy

Chancellor John Healey has used his first Budget address to announce a £100 payment for millions of households to assist with soaring energy bills. This support, targeted at those in council tax bands A to D in England, will be funded by an increase in the tax on bank profits, which is set to rise from 3% to 6% starting next January and lasting through April 2028. With Wales saying it will match the payment and the Scottish government planning to “replicate” it, one-off £100 energy payment for people living in council tax bands A to D in England. Healey announces £100 energy bill help for millions and raises taxes on banks and some savers.

During an hour-long address to a crowded House of Commons, attended by Prime Minister Andy Burnham, Healey pledged to offer families “breathing space now” and “hope for the future” while navigating what he described as “global economic storms.” Beyond the direct energy payment, he confirmed plans to scrap gas standing charges across England, Scotland, and Wales during 2027. These costs will be reallocated to unit pricing, potentially increasing bills for heavy gas users. Meaning heavy gas users will face higher bills, these fixed daily fees will be shifted onto the price of each unit of energy.

The Chancellor also announced a 3.9% increase in minimum wage rates effective from April, though there will be no move to bridge the pay gap between younger and older workers. Additionally, he extended the current 5p temporary reduction in fuel duty on diesel and petrol until July and introduced higher taxes on high-stakes gambling machines.

Conservative leader Kemi Badenoch heavily criticized the measures, labeling the government as “overspent, overborrowed, overtaxed and drowning in an out-of-control welfare system.” She argued that Healey’s proposals were not bold enough to address the country’s economic challenges.

While the budget includes various tax breaks aimed at boosting high street businesses, Healey clarified that significant decisions regarding welfare and defence spending have been deferred until next year.