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Healey’s first budget cuts gas charges, raises wages 4%

By Drooid · Oct 28, 2026, 14:50 UTC · How we work

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Summary

Chancellor John Healey delivered his first budget statement to the House of Commons on 28 October 2026.
Healey announced minimum wage rises of 4% to £13.20 for workers 21 and over and 3.9% for younger workers.
Healey pledged to freeze fuel duty at 52p per litre for the 16th consecutive year.
Healey said the Treasury will eliminate standing gas charges by 2027 to save households £45 annually.

History

In 1998, the UK Parliament enacted the National Minimum Wage Act, setting a £3.60 hourly floor for adult workers under Prime Minister Tony Blair. Chancellor Gordon Brown, who championed the law, estimated it would raise earnings for about 2.5 million low-paid employees by 2000. Healey’s October 2026 budget echoes that legacy, lifting the minimum wage to £13.20—a 267 % jump from 1998—while maintaining a 16-year fuel duty freeze. Analysts note the 1998 wage increase cost the Treasury about £2 billion annually, suggesting Healey’s similar scale could reshape Labour’s fiscal agenda.

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Historical Context

In 1998, the UK Parliament enacted the National Minimum Wage Act, setting a £3.60 hourly floor for adult workers under Prime Minister Tony Blair. Chancellor Gordon Brown, who championed the law, estimated it would raise earnings for about 2.5 million low-paid employees by 2000. Healey’s October 2026 budget echoes that legacy, lifting the minimum wage to £13.20—a 267 % jump from 1998—while maintaining a 16-year fuel duty freeze. Analysts note the 1998 wage increase cost the Treasury about £2 billion annually, suggesting Healey’s similar scale could reshape Labour’s fiscal agenda.

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