By Karim Hammam
UK Chancellor John Healey delivered his first Budget on Wednesday, 28 October 2026, in the House of Commons, unveiling a package of measures aimed at easing the soaring cost of living.
Gas standing charges to be abolished
The chancellor announced that standing charges on gas bills will be scrapped from 2027, with fixed costs shifted to the unit rate. The Treasury estimates the change could save 60 per cent of households an average of £45 on their annual bills.
Winter energy support for 20 million households
Healey also unveiled a £100 payment for millions of households to help with energy bills this winter. Around 20 million households in council tax bands A to D will receive the payments directly into their bank accounts, at a cost of £2.6 billion.
The VAT cut on electricity will be extended until July, reducing the annual price cap by £50.
Alcohol duty rise and supermarket price cuts
The Budget adds 2p to the price of a pint, while the chancellor highlighted cuts to the cost of supermarket staples including baked beans, gherkins and chocolate.
Import tariffs on over 100 products will be removed, a move the government says will lower prices for consumers.
Greater Manchester Mayor Andy Burnham pledged to deliver “breathing space” for families and businesses in the first Budget under his leadership.
