John Healey’s UK budget sets out energy bill help, wage rises and savings changes
The chancellor announced a £100 energy payment for some households, higher minimum wages and a lower Lifetime ISA withdrawal penalty for certain first-time buyers.
UK Chancellor John Healey unveiled an Autumn Budget in London on 28 October 2026 that includes help with household energy bills, higher minimum wage rates and changes for first-time buyers, Al Jazeera reported. It is the government’s first budget since Andy Burnham became prime minister three months ago, and its measures address living costs facing households and workers.
How the budget addresses household energy bills
The Guardian reported that 20 million households in council tax bands A to D will receive a one-off £100 energy payment directly into their bank accounts. Healey also said the government would abolish standing charges on gas bills for 23 million homes, a move it says would save two-thirds of households an average of £45 a year. The reported savings are the government’s estimate; the measures are separate from the one-off payment.
The Guardian said a VAT cut would be extended through winter and spring to July, taking £50 off the annual energy price cap. It also reported that fuel duty would remain frozen for a 16th consecutive year. These provisions target different household costs, so their figures should not be treated as a single saving available to everyone.
What changes for workers and first-time buyers
Both the National Minimum Wage and National Living Wage will rise by 3.9% in April, according to Al Jazeera. It reported new hourly rates of £11.27 for workers aged 18 to 20 and £13.21 for those aged 21 and over. The Guardian also reported an increase in the higher mileage rate for people using their cars for work, from 25p to 30p a mile.
For first-time buyers using a Lifetime ISA to buy a home costing more than £450,000, the withdrawal penalty will immediately fall from 25% to 20%, Al Jazeera reported. That reduction means savers will get back at least the money they deposited. A First Time Buyer account is planned for 2029 to replace the Lifetime ISA, but the design of the new account remains unclear.
The budget’s wider fiscal and economic setting
Al Jazeera reported a temporary rise in the Bank Corporation Tax Surcharge from 3% to 6%, lasting 15 months until 31 March 2028 and expected to raise £1.5 billion. It also reported £432 million of spending over two years to reduce rough sleeping. The Guardian said tariffs would be removed from more than 100 imported products, including baked beans, chocolate and gherkins.
The Office for Budget Responsibility expected no growth in real earnings next year, Al Jazeera reported, underscoring the pressure behind the cost-of-living measures. The Guardian said several policies had been announced or trailed before the speech and identified the £100 energy payment as one of its new measures.
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Sources and context
- Five key takeaways from the UK Autumn BudgetAl Jazeera
- Budget 2026: key points at a glanceThe Guardian
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.