John Healey’s “Scattergun” Budget Leaves UK Households Facing Higher Energy Bills, Think-Tank Says

Chancellor John Healey delivered his first budget, announcing a £100 payment for up to 20 million households in council-tax bands A-D, the removal of standing charges on gas bills, and a pledge to consider scrapping electricity standing charges. The package also includes tax breaks for high-street businesses and higher taxes on banks and gambling.

Mirror - UK

The budget arrives amid “global economic storms” that Healey links to the Iran war, trade tensions and the lingering effects of Russia’s invasion of Ukraine. The Office for Budget Responsibility (OBR) has cut its forecast for UK gross-domestic-product growth for the coming year, tightening fiscal space for additional support.

Mirror - UK

• The Resolution Foundation projects typical annual energy bills of £1,750 for 2026-27 after government support, only slightly above the £1,685 paid during the 2022-23 price surge.

Manchester Evening News

• The think-tank’s analysis shows the poorest half of households will receive an average £158 in cost-of-living support this year and next, compared with £144 for the richest half—a gap of £14.

Mirror - UK

• Predicted disposable-income loss for a typical household is £1,050 between now and the end of the parliamentary term (2028-29), limiting the net increase over the five-year parliament to £600.

Mirror - UK

• “Cost of living support is being spread far too thinly and will leave even those families receiving help facing higher energy bills than they did during the last energy price shock.” — John Healey

The Guardian

The OBR’s revised growth forecast and the Resolution Foundation’s analysis suggest that future budget decisions will need to balance public-service ambitions with the projected decline in household disposable income, a tension that Healey acknowledged will become “starker” in the coming year.

Mirror - UK