By Ahmed Abdelsalam
Chancellor John Healey delivered his first Budget on Wednesday, announcing the abolition of standing charges on gas bills from 2027 and a reversal of planned cuts to cash ISA allowances, as part of a package aimed at easing the cost-of-living crisis.
Gas standing charges abolished
The Treasury confirmed that standing charges on gas bills, which cover delivery costs, will be scrapped from 2027 “or as soon as possible after.” The move could save households between £22 and £50 per year. Money expert Martin Lewis, who met Healey at No 11 Downing Street earlier, hailed the decision, having long campaigned against what he called a “poll tax on energy.”
Cash ISA limit restored
Healey also reversed former chancellor Rachel Reeves’ plan to cut the annual cash ISA allowance for under-65s from £20,000 to £12,000. Industry experts welcomed the U-turn, noting the previous proposal risked penalising savers and hampering building societies that rely on ISA deposits for mortgage lending.
Minimum wage and other measures
The Budget includes a near 4% rise in the national minimum wage, a permanent higher tax-free mileage allowance of 55p, removal of import tariffs on over 100 products including chocolate and gherkins, and extended parental pay for over 150,000 parents annually. Additional funding includes £600 million for AI development, £7 million for a feasibility study on a northern England Olympic bid, £285 million for regional mayors, over £1 billion for social housing, and £432 million for rough sleeping programmes.
Criticism and warnings
The Green Party dismissed the standing charge abolition as “tinkering” that fails to address soaring energy bills. Martin Lewis warned that the energy price cap is expected to rise 27% in January 2027, adding around £100 to bills over three months, and said a further support package would be needed. He indicated Healey signaled willingness to act.
